Portugal’s Foreign Population Growth Boosts Demand for Tavira Real Estate

Portugal has officially reached a remarkable demographic milestone. According to the latest data from the Agency for Integration, Migration and Asylum (AIMA), foreign residents now make up 15% of the national population,  a figure that’s quadrupled in just seven years. In 2017, Portugal had just over 400,000 foreign-born residents. As of data collected in late 2024, that number has surpassed 1.1 million and has continued to grow this year.

This surge in foreign residents is having a clear impact on many sectors and real estate is front and centre particularly in high-demand coastal towns like Tavira. If you're exploring property for sale in Algarve Portugal, these population trends are worth noting.

Why Are So Many Foreigners Choosing Portugal?

Portugal’s appeal goes well beyond its sunny climate and scenic coastline. Stability, safety, affordable healthcare and a high quality of life continue to make it a magnet for retirees, digital nomads, investors, and families alike.

From tech entrepreneurs to remote workers, Portugal is now home to a broader and more diverse foreign population than ever before. For example, in 2023, Americans accounted for 22.4% of Portugal’s Digital Nomad Visas, while Brazilians remained the largest international community in the country.

What This Means for the Local Property Market

The demand for property in Tavira has increased in parallel with these demographic changes. The combination of lifestyle appeal and strategic visa pathways such as the Golden Visa and D7/D8 visas  is encouraging many to buy homes rather than rent.

This growing interest is good news for sellers and investors alike, with Portuguese real estate offering long-term value in a location that’s still more affordable than many Western European counterparts.

Tavira Continues to Stand Out

While cities like Lisbon and Porto still attract plenty of interest, Tavira, in the Eastern Algarve, offers a distinct advantage of space, nature, and a slower pace of life, without sacrificing amenities. For those looking to buy property in the Algarve, the town provides an ideal balance of traditional Portuguese charm and modern living.

With demand growing and availability tightening, now is a key time for prospective buyers to explore Tavira property options while they’re still accessible.

The Bigger Picture: Investment, Growth and Community

Between 2017 and 2024, the number of international contributors to Portugal’s social security system jumped from 244,000 to 1 million. Their contributions have played a major role in funding public services and boosting the economy. Last year alone, international residents contributed €3.65 billion  over 12% of the country’s total social security revenue.

As Portugal continues to attract more global residents, this momentum is fuelling demand across the property market especially in coastal towns where lifestyle and community are the main draw.

Thinking About Investing in Tavira Real Estate?

At Compass Property Sales, we help buyers from around the world navigate the market with confidence. We offer a range of Tavira properties for sale to suit your lifestyle and investment goals.

Contact our team today and let us help you find the right property for you.