Portugal is a paradise for second-home buyers, according to figures
Portugal may well be the smartest choice for expats (here), but it is also attracting non-residents in search of the ideal ‘home away from home’. In what has been the best year for Algarve real estate since the recession (read more), the number of non-residents buying properties nationwide has risen by almost 15%.
According to a recent study from the Portuguese real estate association APEMIP, almost 20,000 non-residents purchased a home in Portugal in 2018, representing an investment of €3.4 billion.
Leading the way are the French buyers, representing 28.2% of total sales to non-residents, followed by the British (14.9%), the Swiss (7.7%), the Germans (6%) and the Brazilian (at least 4.9%), with the latter increasing month on month.
Algarve still top choice
The favoured location for a second home in Portugal is the Algarve, with almost 30% of properties sold in the country’s sunniest region. But the trend can be seen nationwide, with a significant number of properties purchased in Central Portugal, Lisbon, the North and the Alentejo regions, along with Madeira and the Azores in smaller number.
Due to higher property prices, in 2018, the Lisbon Metropolitan Area saw the largest investment at €1.3 billion, followed by the Algarve with €1.2 billion and the North with €362 million.
In a press release announcing the results of the study, Luís Lima, president of APEMIP, stated that “foreign investment is still very important on the national real estate scene”. He added: “There is a growing number of transactions that don’t involve programmes to attract investment (such as the Golden Visas and the Non-Habitual Residency tax regime).”
Lima did note, however, that these programmes are still very relevant, especially when we take into account the competitive advantages of investing in Portugal.
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