The recently analysed data on the performance of the real estate market in 2017 revealed that in every 4 property for sale, 1 was purchased by foreigners. Luis Lima, the president of the Association of Real Estate Developers (APEMIP) even points out that these figures correspond to 25% of the real estate market.
In 2017, Portugal's real estate market witnessed a growing tendency for foreigners to look for a home on Lusitanian soil. These purchases were made by people from different nationalities, however, the French and Brazilians were the main buyers followed by the British and Chinese.
These figures, which announce the already expected growth trend in the domestic market relating to real estate transactions by foreigners, show that in 2017, more than 152 thousand purchase and sale transactions were carried out with real estate agencies. This is a figure that beats the trend in 2016.
This increase is related to a number of factors, with particular emphasis on the support and benefits offered by the government, particularly in the form of Golden visas as well as the positive positioning that Portugal has taken up in the various tourism rankings. It is worth remembering that Portugal was among the safest countries in the world and was even considered as the best destination to retire in.
Given this scenario, as stated by the president of APEMIP, Luis Lima, the number of foreigners looking to buy property in our country will continue to grow. The president also believes that in 2018, figures will be higher than those presented during the year 2017. Luis Lima justifies this prediction by pointing out that the rise in prices in some cities of the country, such as Lisbon, may make it unfeasible for us to compete with other European capital cities that have lower property prices and where the quality of life is clearly high.
In addition, since foreigners have greater purchasing power, Portugal is expected to continue with higher demand from them.
Although clearly positive for the real estate market and for the Portuguese economy, there is a reverse of the medal on this issue and the president of APEMIP, Luis Lima, does not forget this fact. According to him, it is extremely important that a viable offer is guaranteed for the Portuguese middle class, since the current scenario may be leading to a situation where demand for housing, especially in the more populous regions, such as Lisbon, becomes almost impossible for this group of people.
Although home purchases by foreigners is good news, it also raises some concerns for the Portuguese locals.