Data by property specialists Idealista shows that Portugal remains ever-popular with international buyers as a location to purchase property.
Why do international buyers choose Portugal?
Firstly, Portugal is popular with foreign buyers because they have fantastic visa options, including for non-EU citizens, such as the digital nomad visa and the Golden Visa. Secondly, Portugal benefits from a warm to mild climate, a lower cost of living, and from the beach to golf, there are plenty of outdoor activities to participate in. Overall, a property in Portugal offers people a better quality of life.
Foreign buyers have a strong interest in Portugal
One might think that the coronavirus pandemic and the war in the Ukraine would mean that less people were buying a home overseas. Although there was a blip between 2020-21, data released by Idealista shows that, foreign buyers are still choosing Portugal. At both the end of 2019 and the end of 2022, the average weight of international demand in twenty capitals of Portuguese districts was set at 29%. So, it is safe to say that after any setbacks caused by the pandemic, the Portuguese real estate has made a full recovery.
Furthermore, interest in the rental market from foreign buyers has increased, December 2022 at 32% than before the pandemic (December 2019, 24%). Although, while the nationalities interested in buying a property in Portugal are varied, Brazilians are considerably more interested in renting than any other nation.
Breaking down these figures further
Although international demand has stabilised on a national level, the interest from foreign buyers is not universally spread across Portugal. There were twelve district capitals where international demand rose and eight where it fell.
Where did international demand rise?
Faro is a popular choice with foreign buyers.
In Faro, Viana do Castelo and Bragança, one in three potential home-buyers are of foreign origin. The beating heart of Portugal’s glorious Algarve, it is no surprise that Faro is so adored by international buyers. Located in the north, Viana do Castelo has an old-fashioned charm with its medieval centre, 19th century boulevards, riverfront, and gorgeous beaches. Similarly, Bragança is a stand-out historical destination, known for Castelo de Bragança, a fortress containing a military museum.
Often called the cleanest and safest city in Europe, 50% of prospective real estate buyers in Funchal were of foreign origin. Once a fishermen’s place, Funchal has had a total transformation into a sparkling modern town. Additionally, Funchal is known for its hip bars and restaurants, galleries, and vibrant market. Finally, in the thriving economic capital of the autonomous region of the Azores, Ponta Delgada, 40% of potential real estate purchasers in are international.
Where did international demand fall?
According to Idealista’s data, Beja, Évora and Coimbra did not captivate the hearts of foreign buyers.
Where were international buyers from?
Lisbon – would you choose to buy a property here?
The countries most interested in property in Lisbon are America, Brazil, and Spain. Meanwhile, Porto caught the eyes of the Americans, Spanish, and Brazilians the most. Finally, Faro was most popular with Germany, America, and Britain.
Moreover, foreigners also pay 50% more per square of houses than the Portuguese do.
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