João Cília, CEO of Porta da Frente Christie’s, warns that Portugal builds only 25,000 new homes annually against a need for 70,000, causing supply shortages across all segments, including luxury. High-end supply has dropped by nearly 25% since 2021, driving prices up by 8.5% last year. Growth in the luxury sector is hindered by a lack of available property in prime locations like Lisbon and Cascais, though expansion is occurring in areas near the Algarve's 'Golden Triangle' and the coast towards Sines. Despite geopolitical tensions, Cília remains optimistic for 2026, citing strong domestic demand supported by falling interest rates and continued interest from international investors, particularly from Brazil and the US.