Published on 3rd April 2020
According to property agents, Hongkongers have been even more interested in cities like Lisbon since the coronavirus outbreak.
The Portuguese property market is often considered a safe haven for foreign investors. The current climate might attract even more foreign investment than ever to the country, with the drop of major currencies.
Georg Chmiel, executive chairman of Juwai IQI, says that “In almost every market where Hong Kong buyers are significantly active, they can buy property for much cheaper now than just a couple of weeks ago. (...) The economic fallout is pushing other currencies down as investors fled to the safety of the US dollar.”
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According to Bloomberg Market numbers, the dollar was appreciated by between 4.7% and 15.5% this year against top major currencies, like the British pound (£), Canadian dollar, Australian dollar, Euro (€) and Singapore dollar. Many are, therefore, looking to emigrate from the city, but also in hopes to escape the ongoing political and social turmoil since 2019.
Ever since the Fed made its first cut on March 3, South Korea, Australia and the UK also had their benchmark rates lowered so they could sustain their economies.
According to collected data, since the outbreak, the main cities of attraction have been Lisbon, London and Sydney.
Considering the current situation and uncertainty, foreign investors must take a medium-term view of 3 to 5 years, instead of short-term gains. In fact, queries about foreign investment have risen significantly, compared to the previous year, being Australia the most sought after country, as the currency offers “a golden chance for those who want to leave to buy a home or make an investment”, said Tina Cheng, director of strategy at Midland Consultancy.
Portugal’s capital, Lisbon, is a trendy hotspot when it comes to foreign investment. Having been considered Europe’s hottest real estate market, more and more foreigners are flocking into the country for a quality lifestyle and advantageous tax and citizenship benefits.
Despite facing turbulent times, our teams at Portugal Homes are still working and closing deals over the phone, showing and selling property through videos, using every digital touchpoint to help our avid investors, as well as, bringing liquidity to many developers and private vendors in Portugal’s core cities.
If you’re interested in investing in the Portuguese Real Estate Market, get in touch with us online and explore our wide range of properties, from beachfront villas to city centre apartments!