Last year was a record breaking year for Portugal’s real estate market. In 2022 home prices had their biggest annual increase in over three decades, as reported by Bloomberg. An increase 0f 18.7% was recorded for 2022 . This represents the biggest increase since 1991.
Foreign buyers have been driving the prices of real estate properties in Portugal. They have been coming in droves to Portugal that have brought up the prices of homes. Much of the influx of foreigners is its popular golden visa or the residency-by-investment programme for non-EU citizens.
Trends behind the growing value of property
The Portuguese golden visa is one of the most popular RBI programmes in Europe and worldwide. This was started in 2012 to attract foreign capital into the country. Since then, around 11,500 applicants have received their golden visas.
Its popularity is due to the attractive mechanisms that make it fairly easy to get a golden visa:
- Starting at €280,000 investment in designated interior areas,
- A requirement to spend a minimum of only seven days a year in Portugal
- Visa-free access to all the EU Schengen states
- The right to live, work and study in Portugal
- After 5 years of residency, you can apply for a Portuguese citizenship
In 2022, 1,281 golden visas were granted. According to the Portugal News, this number has raised €654.2 million in foreign investments, a sizable increase of 41.9% from the previous year. Also, in 2022, 808 approvals were given for real estate purchases through the golden visa programme. Of the purchased properties, eight out of 10 are located in Lisbon and Porto.
The demand for real estate has been particularly strong in the luxury homes sector. Many foreigners who choose to purchase properties in the country are the looking either to expand their investment portfolio or looking for a place to retire. With substantial cash to splurge on properties and not having to depend on mortgage, the demand for prime residential properties have been driven upwards.
Why people are falling in love with Portugal
Whether you choose to relocate to Portugal for business, work, study or travel, one thing’s for certain - expats love Portugal. And who wouldn’t? This European gem certainly has much to offer:
- Sunny Mediterranean weather - a come on for those looking for sunshine especially during winter
- Breathtaking landscapes - whether you prefer the mountains or the beach, in Portugal you get all of them
- Great cuisine - the local culinary delights have always received consistent praise
- Lower cost of living compared to Spain or the UK - purchasing or renting a home is more affordable than its European neighbors
- Safety - the country is the #6 safest country in the world according to the 2022 Global Peace Index
- Friendly locals - Portuguese people are easy-going and welcoming, having been accustomed to the presence of foreign nationals
Portugal has become such a popular choice among retirees that it now occupies the number spot in the 2023 Annual Global Retirement Index as the world’s best place to retire.
It seems that for foreigners looking for a second country in Europe, Portugal comes as an easy choice. Perhaps you’d also like to explore life in this Mediterranean paradise. Contact our team members, who can assist you in your search.