4th January 2024
Non-EU buyers boosting Portugal property market

Those living outside the European Union (EU) are buying more houses in Portugal, with the number of transactions registering a year-on-year increase of 8.7% in the summer of 2023.

 

The end of golden visas in October and the end of the non-habitual residents as early as 2024 could help explain the counter-cycle generated by the rush to buy houses by foreigners outside the EU, which reached 5-year highs, according to idealista.

 

In Portugal, 34,256 houses were sold between July and September 2023, 18.9% less than in the same period last year. These housing sales mobilised a total of 7.1 billion euros (-12.2%), as revealed by the National Statistics Institute (INE).

 

What also stands out is that the Portuguese bought fewer houses (-20.1%), as did foreigners residing in Europe (-9.1%).

 

•National buyers: 31,515 homes were sold, 20.1% less year-on-year. In terms of value, almost 6.2 billion euros were recorded (-13.4%);

•EU residents: a total of 1,349 homes were transacted, registering a year-on-year reduction of 9.2%. Here 335 million euros were mobilized (-20.3%);

•Foreign residents outside the EU (other countries): 1,392 transactions were recorded, corresponding to a year-on-year increase of 8.7%;

•These sold homes were worth a down payment of 566 million euros, 11.3% more than a year ago.

 

This means that unlike the Portuguese and EU citizens, residents outside the European space purchased 111 more homes in the summer of 2023 compared to the summer of the previous year and invested an additional 57 million euros. Both the number of houses purchased by foreigners outside the EU and the amount invested represent 5-year highs, according to the available INE series dating back to 2019.