The real estate market in Portugal has experienced significant growth and attractiveness in recent years. It has become a sought-after destination for international investors due to various factors such as affordable prices, a high quality of life, favorable tax conditions, and a thriving tourism industry.
Here are some key figures that highlight the state of the real estate market in Portugal:
Property Prices in Portugal ForCheapest towns to buy house in Portugal
Property prices in Portugal have been steadily increasing, particularly in major cities like Lisbon and Porto. According to data from the National Statistics Institute (INE), property prices in Portugal rose by an average of 10% in 2021.
Foreign Investment
Portugal has seen a surge in foreign investment in its real estate market. In the last years, foreign buyers accounted for approximately 25% of all real estate transactions in the country, with investors coming from various countries, including the United Kingdom, France, Brazil, and China.
Portugal Golden Visa Program
Portugal’s Golden Visa program has been a significant driver of foreign investment in real estate. The program offers residency permits to non-EU investors who invest in Portuguese properties above a certain threshold. Since its inception in 2012, the Golden Visa program has attracted significant investment, particularly from Chinese, Brazilian, and Turkish investors.
The Portuguese Rental Market
The rental market in Portugal has also experienced growth in recent years. Rental yields have been relatively attractive, especially in popular tourist areas such as Lisbon and the Algarve. According to data from Idealista, the average rental yield in Lisbon was around 2,6% in 2022.
Urban Rehabilitation
The urban rehabilitation sector has seen significant development in Portugal. Various renovation and revitalization projects have transformed historic buildings and neighborhoods, attracting both domestic and international buyers interested in unique and renovated properties.