CONTINUOUS REAL ESTATE GROWTH IN PORTUGAL

  • Home >
  • News >
  • CONTINUOUS REAL ESTATE GROWTH IN PORTUGAL

CONTINUOUS REAL ESTATE GROWTH IN PORTUGAL
Reading time: 3 minutes
Published: 20th June 2018, 4:10pm

After almost a decade during which the value of real estate in Portugal stagnated at best, comes news that house prices have recorded their biggest increase in 26 years. 

Latest numbers out this week show that the cost of buying a house in Portugal has risen by 14.2 percent in the space of just one year. 

According to the Residential Price Index, published by Confidential Imobiliário this increase recorded during the first quarter of the year, is the biggest since 1992.  

The cost of housing has now climbed for 11 consecutive quarters, with urban areas seeing the biggest rises. This latest increase also brings the average price of properties to above the highs recorded in 2007, shortly before the financial crisis.

According to the Bank of Portugal, overall foreign investment in real estate in the country in 2017 represented 80 percent of all transactions. Foreign buyers, encouraged by the Golden Visa rule and the non-habitual residence programme, have been buying up properties across the country.

With increased tourism again across the main regions of Porto, Lisbon and the Algarve Portugal is becoming the go-to destination for many Europeans with an average 15% increase month on month for over a year, there seems to be no end to how popular the country is becoming as a holiday destination. 

With increased rents for locals and the property market increasing substantially its becoming difficult for locals to find affordable housing, the Left Bloc of whom the socialists government rely on to stay in power are currently calling for an end to the Golden Visa and Non-Habitual Residents programmes. 

With this in mind the government has introduced a scheme for middle-class citizens to get a guaranteed rent in the major cities that only increase with inflation over the next 30 years, however, they are relying on investors to take up the option of buying the buildings from the government and freeing them up for the middle class.

Its a smart move from the Socialist Government who benefit hugely in property taxes from both the GV and NHR, its impossible for the Portuguese economy to keep recovering without this investment into the country and this move to protect the middle class should buy them a few more years of both programmes.

In the short term I don’t think there is any reason to panic however if you are thinking of taking up the option of either programme my advice would be to do it sooner rather than later, with government elections in the 3rd quarter of 2019 they may start to add some restrictions to either or both programmes as they compete for re-election, although any party that’s elected will find it difficult to give up hundreds of millions in taxes each year.


David Poston
Managing Director
Portugal Homes

Phone: +351 213 471 603

Email: info@portugalhomes.com 

3rd September 2018
A Message from our Director As the city continues to grow in stature and…
3rd September 2018
The European headquarters of the World Surf League (WSL) will be set up…

Buying Property in Portugal

Portugal Homes has very experienced and knowledgeable professionals working with some of the most established and reputable developers Portugal has to offer. Our vast experience allows us to guide you through the best investment choices.

Whether you want a holiday home or an investment property, we select the best units for your profile and take care of all the process from start to finish. Even after the sale! Our After Sales services assume the responsibility of furnishing your property at your taste, taking care of the property in your absence, managing the rentals if you wish to rent your property when you’re not in Portugal and so much more!

To learn more about the Portuguese Non-Habitual Resident Program and our After Sales services, please fill the form below.

My property advisor, Mathew McGurn, was truly excellent! His knowledge, professionalism and attention to details was much appreciated. He worked hard to not only find a property that fit all my requirements, he negotiated successfully with agents making sure my offer won over other buyers bidding for the same property. In addition, his communication skills, prompt response time and general help with my getting settled in Portugal went above and beyond the normal.

Investor from the USA

Dear Sérgio, thank you so much for arranging our 1º Esquerdo place. We love our place, and your attention to detail is very much appreciated. 

Tim Thronson - Investor from the USA

A full service, one stop opportunity. Very easy for us a foreigners. Ryan Dunn went above and beyond for us. We appreciate him and his work!

Jose Arias - Investor from the USA

Everyone I met with and spoke with has been extremely knowledgeable and professional. Dealing with native English speakers who understand things from my perspective was very reassuring. Finally, knowing that I had Matthew in my corner gave me the confidence to proceed with the process of buying an apartment in Lisbon. Thanks very much.

Investor from the USA

So far it has been great. Simon is very knowledgeable and friendly.

Loay El Abiad - Investor from Saudi Arabia

It's fantastic how Ryan had complete knowledge regarding Lisbon and dealt with us in a great manner.

Akbar Ali - Investor from Pakistan