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Sarah Ferguson May Settle in Melides, Stoking Alentejo Housing Frenzy

Economy,  Immigration
By The Portugal Post, The Portugal Post
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Sunlit Alentejo villas may soon host another familiar face from Buckingham Palace. Persistent whispers in British tabloids—and, more tellingly, from wealthy homeowners on Portugal’s southwest coast—suggest that Sarah Ferguson, once the Duchess of York, is preparing to trade rural Berkshire for the CostaTerra Golf & Ocean Club near Melides. If the move materialises early next year, Portugal would gain yet another high-profile resident and the Alentejo property market could tighten even further.

From Windsor to Melides: what we know

The rumour mill began grinding when neighbours of Princess Eugenie and her husband Jack Brooksbank noticed workmen refitting a sprawling Atlantic-facing house bought for about €4.1 M. Friends of the couple say a "grand suite" is being tailored for Eugenie’s mother, while gossip columns point to January as the likely arrival date. Ferguson, 66, is thought to be clearing out of Royal Lodge, the Windsor estate she once shared with Prince Andrew, and sees Portugal’s mellower spotlight as an antidote to relentless scrutiny at home. No spokesperson has confirmed a contract or a residence permit, yet the absence of denials has only fanned expectations.

A discreet retreat adored by the wealthy

CostaTerra’s appeal reaches far beyond golf. Set between aromatic pine forests and the untamed Sado estuary, the members-only enclave markets itself as the "Hamptons of Portugal". Early buyers include Hollywood names and Wall Street executives who fly into Alcácer-do-Sal’s private runway for weekend escapes. Villas start at well over €4 M, a threshold that has not deterred demand; estate agents say each new celebrity purchase drives a fresh wave of price revisions. Local hoteliers note that Ferguson, known for philanthropy and children’s books, could blend easily into an expatriate micro-society already accustomed to secrecy, concierge services and year-round sunshine.

Why Portugal lures British figures now

Brexit complicated freedom of movement, yet Portugal remains a magnet for Britons with means. The original Non-Habitual Resident programme is closed to newcomers, but its successor, the IFICI tax regime, still offers a 20 % flat rate on qualifying Portuguese income and shields certain foreign earnings for ten years. Lawyers caution that these benefits apply mainly to high-value activities—tech, science, creative arts—rather than passive pensions, but bespoke tax planning can bridge the gap. Add political stability, a robust double-taxation treaty with the UK, and plentiful English-speaking schools, and it becomes clear why monarchy-adjacent families keep house-hunting from Lisbon to Comporta.

Ripple effects along the Alentejo coast

Property analysts tracking Idealista data calculate that the price per square metre in Grândola leapt from €3,259 in late 2024 to €3,772 by this October, an 18.4 % jump—double the national average. Civil society groups such as GEOTA warn that the boom is outpacing local wages, squeezing teachers, health-care staff and small business owners out of the rental market. Municipal elections this autumn revolved around a single question: how to channel celebrity money into affordable housing without scaring off the investors funding new roads and wastewater plants. Ferguson’s arrival, symbolic as it may be, risks becoming a flash-point in that debate.

Waiting for official word

Despite the swirl of detail—purchase price, moving vans, even the colour of the drapes—there is still no on-record confirmation from Ferguson’s office or the York Family foundation. Royal correspondents note that she underwent surgery for breast cancer in July and may be postponing any long-haul relocation until medical clearance. Immigration specialists add that obtaining Portugal’s D7 visa or a golden-visa equivalent can take months, though Ferguson’s documented income and international profile should smooth the path. For now, locals in Melides are resigned to half-truths and paparazzi telephoto lenses peering through cork oaks.

What it means for locals and expats

Should Ferguson plant roots in the Alentejo, Portugal will gain both a high-visibility ambassador and another test case for balancing luxury investment with community cohesion. Restaurateurs anticipate a spike in winter bookings; construction firms hope for refurbishment contracts; environmentalists fear further pressure on sensitive dunes. In quieter conversations, British retirees already living in the region say the ex-royal’s move validates their own choice: a country that offers mild winters, political calm, and an ease of living hard to replicate in post-pandemic Britain. Whether that endorsement proves boon or burden for Melides depends on policies now being drafted at Grândola’s town hall.