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. 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 per cent 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 growing substantially it’s becoming difficult for locals to find affordable housing, the Left Bloc of whom the socialist’s 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.
It’s a smart move from the Socialist Government who benefit hugely in property taxes from both the GV and NHR, it’s 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.
About Portugal Homes
PortugalHomes.com specializes in selling Holiday Homes and Investment Properties. We help buyers find the right property overseas whether it be for Golden Visa, NHR, Investment or simply a place in the sun, our properties are selected with great thought in mind to give our clients the best opportunities, we offer the complete service from Introducing them to Legal Representatives, Currency Exchange, Mortgage Advisors, Property Management, Rental and Furniture Packages along with making sure all our staff are trained to fully understand the buying process and taxes for every scenario, we provide the complete service to anyone looking to buy a new or resale property overseas for holiday use or as a short or long-term investment.
To find out more, please contact us:
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.
It's fantastic how Ryan had complete knowledge regarding Lisbon and dealt with us in a great manner.Akbar Ali - Investor from Pakistan
Ryan is very professional, but also friendly and knowledgeable about the Golden Visa market. He was also flexible as travelled from the Algarve to meet me in Lisbon to stand in for 1 colleague at short notice.Investor from UK
Portugal Homes did a great job keeping me up to date with progress on my new home construction purchase by providing regular and comprehensive reports. This helped to ease anxieties about doing a home purchase in the midst of a global pandemic.Investor from the USA
Although through Zoom, we established great confidence in George's integrity. [It was] important for us to have confidence in the staff's ability to feel aligned in views.Donald Collie from Australia
The process was very quick and clear. I got all the information I needed in the first hour. The experience was perfect.Tomoko Inoue from Japan
Overwhelming. Luisa has exceeded our expectations on all levels. Trust was established immediately. Enhanced by super friendly professionalism. The networks to banks, accountants, lawyers was seamless. there is not enough space here to write all the positives, enough to say we are making an offer and we only arrived 4 days ago. Its impossible to improve from perfection!John Mulroe and Wiebke Bock