Whether you are planning to buy or sell property in Portugal online, you will do well to read this guide on the Portuguese housing market. Portugal is one of the most popular overseas property destinations. Portugal is a southern European country on the Iberian Peninsula, bordering Spain. Its location on the Atlantic Ocean has influenced many aspects of its culture: salt cod and grilled sardines are national dishes, the Algarve’s beaches are a major destination and much of the nation’s architecture dates to the 1500s–1800s, when Portugal had a powerful maritime empire. Investors are flooding in from across Europe, Scandinavia the US, and Brazil.
It has a reputation as a safe country with a very low crime rate. The quality of life here is very good and most people live in a laid back, relaxed manner. The average Portuguese is liberal, highly educated, materially well off and friendly to foreigners. It is very rare to hear any incidents of racial, religious or sexual discrimination in Portugal. This is one of the best countries to live in the world.
The property market in Portugal is one of the best performing in Europe. There is a huge demand for homes, apartments and villas in Portugal, especially in Lisbon and the Algarve. The Algarve in particular is seen as Portugal’s answer to Spain’s Costa del Sol. It is one of the best places to live in the world.
The coastal areas are very popular with foreign buyers. While property prices here fell by 40 to 50 percent in the aftermath of the economic crisis of 2008, they have since staged a smart recovery. There is a far greater demand for property in Portugal than the amount of housing stock that is available. When this happens the natural consequence is a further rise in property prices.
According to the RICS/Ci Portuguese Housing Market Survey conducted in 2017, home prices in Portugal have risen by 5% every year. The availability of low-interest mortgages has certainly helped fuel the demand and encouraged more locals to buy property in Portugal online.
There is a huge demand from overseas buyers for Portuguese properties as well. Britons remain the biggest buyers of properties here, along with Swedes and Norwegians. The French have been buying homes in Portugal as well.
In fact, there has been tremendous interest from French retirees in homes in Portugal. They are attracted by the fact that Portugal has a much lower cost of living than Spain, lower taxes, and a high quality of life, with a world-class healthcare at affordable cost.
Brexit may have dampened the British interest a little, but Britons are still prominent buyers of homes, apartments and villas in Portugal, especially in the coastal areas, such as in the Algarve.
The Portuguese government launched a highly successful Golden Visa scheme which promises residency permits for non-EU investors who buy properties in Portugal worth €500,000 at least. This has been highly successful at attracting interest from Chinese, Turkish and Brazilian buyers.
Most of these non-EU buyers prefer to buy apartments in Lisbon rather than villas in the Algarve – which makes them different from British, French and Scandinavian buyers of properties here.