Investment in real estate in Portugal continues to attract the attention of foreigners. The residential market data for the first quarter of this year leaves no room for doubt. House sales to citizens of other countries soared by more than 70%. According to the National Statistics Institute (INE), investors with tax residency in the European Union (EU) increased by 72.3% compared to the same period in 2021 and buyers from other countries grew by 79.1%.
In total, foreigners bought 2556 properties, of which 1435 were bought by EU residents and 1121 by people from other countries, spending a total of around 842.4 million euros. This dynamic, which is partly due to the market shutdown at the beginning of 2021 due to the pandemic, is also reflected in the number of gold visas approved since the beginning of this year. In the first five months, the acquisition of real estate through this scheme raised 190.2 million.
The current context of the real estate market is one of high demand from both foreigners and nationals. As the INE revealed, between January and March this year 43,544 properties were sold in the country, a year-on-year increase of 25.8%. The purchase of new housing increased by 28.7% to 7,603 homes, although it was the purchase of second-hand properties that generated a large influx of investment, with the transaction of 35,941 homes, representing a year-on-year increase of 25.2%. Families were the main drivers of the market, accounting for 37,840 transactions (or 86.9% of the total), an increase of 28.6%.
In terms of value, the Portuguese residential market generated an overall turnover of 8.1 billion euros in the first quarter of this year, 44% more than in the same period in 2021. Households were responsible for purchases of seven billion, an increase of 46.3%. The vast majority of deals involved the purchase of second-hand homes, up 41.8% to 6.1 billion euros. The purchase of new homes increased by 53.4%.
Source: Diário de Notícias