Is Portugal still a good choice for overseas property investment?
I gave you my take in a previous issue of Overseas Property Alert. Now I want to share the opinion of a local expert.
Global Property Advisor Editor Mónica Linares spoke to our contact on the ground about what he makes of the big changes Portugal made in 2023 and what he foresees for its property market in 2024.
Here’s what he had to say…
Mónica: The big headline from Portugal in 2023 was the changes it made to its golden visa program—namely, the elimination of real estate from the investment classes that could qualify you for a golden visa.
How has this impacted the property market?
Portugal Expert: “Golden visa-related real estate transactions account for a negligible percentage of the total transactions…
“The main difference is that now, apart from the asset itself, there are no additional benefits to buying property in Portugal.”
Mónica: Right. Residency is no longer an additional benefit of buying property in Portugal… but its property market is still open to foreign investment.
And even without the golden visa program, Portugal remains one of the easiest places in Europe to get residency and citizenship.
Portugal Expert: “The property market is active for both local and foreign sellers.
“Portugal has been attracting significant interest from international buyers, particularly those from the United States and the U.K.
“This trend is partly driven by Brexit uncertainties and American investors seeking alternative plans in Europe.
“Prices have been on an upward trend since 2014, and demand for real estate remains high with a lagging construction sector.
“This could potentially facilitate the sale of properties for investors in the future.”
Mónica: How has Portugal’s property market performed this year, and what do you foresee for 2024?
Portugal Expert: “The market has demonstrated considerable dynamism in 2023.
“Despite the geopolitical and macroeconomic context, 2022 was a standout year for the real estate sector in Portugal.
“The outlook for 2023 and 2024 remains optimistic, albeit with some uncertainty.
“Foreign investment in Portuguese real estate has not only continued but possibly increased in 2023.
“However, the market also faces challenges…
“Moody’s has suggested that house prices in Portugal could fall by as much as 3% in 2023.
“It believes that property prices in the country have exceeded the intrinsic values of the assets, indicating they are overvalued. This overvaluation could lead to a correction in house prices in the near future…
“In our opinion, though, due to the lack of available housing, prices will keep going up.”
Mónica: Is now a good time to make an investment?
Portugal Expert: “The latest data reveals some interesting trends in Portugal’s market growth and tourist numbers…
“According to the Bank of Portugal, real GDP growth, which was a robust 6.8% in 2022, is predicted to drop to 2.1% in 2023 and further to 1.5% in 2024.
“Despite this slowdown, the Portuguese economy is outpacing most of its European counterparts.
“In the tourism sector, September 2023 saw more than 8.2 million overnight stays in tourist accommodation establishments.
“The sector continues to bolster economic activity, which saw a surge at the start of 2023 due to an increase in tourism.
“These trends suggest that, despite certain economic challenges, Portugal’s tourism sector remains robust and continues to make a significant contribution to the country’s economy.
“Portugal still has all the factors that make it an attractive destination for foreign investors, including its geographical position, being far from conflicts, its good weather, beautiful landscapes, security, and high quality of life.
“Much depends on the area you invest in…”
Where in Portugal does our expert suggest making a real estate investment in 2024?
Read Mónica’s full conversation with him in the latest issue of Global Property Advisor.
Or better yet, join us for the Live And Invest In Portugal Conference in April 2024 and find out from him directly.
As well as property experts, we’ll have residency lawyers, tax advisors, relocation specialists, and fellow expats on hand.
This event is a one-stop shop to get all the information you need to make a lifestyle or investment play in this country.
Our free VIP upgrade packages sold out in record time… We added 15 more, and they’re already going fast, with only 12 remaining as of yesterday.
When these free VIP packages are gone, they’re gone.
Don’t miss out. Save your seat and secure your free VIP upgrade, now.
Edito, Overseas Property Alert