International investors and expats boost Portugal’s allure as Europe’s property hotspot

Property prices in Portugal are set to continue to soar, according to the latest report, as it continues to benefit from the triple-whammy of international investment, regeneration, and tax incentives for affluent expats.

The findings come in a new analysis by Property Market-Index, an international real estate research company. Its report - Portugal’s Property Hotspots 2023-25 - concludes all the signs are the country will continue to exceed expectations.

The report reveals property prices in Portugal have jumped 6.5% on average in the last 12 months, while real estate values in prime locations such as the Algarve have rocketed by up to 15%.

Highlighting other in-demand areas, it says Lisbon and nearby Cascais, Comporta, Estoril, Sintra, along with the Silver Coast and selected northern parts of Portugal, such as districts in and around Porto and Braga, have also surged in value.

And with high demand and limited new developments, real estate prices in many of these areas are predicted to climb around 8.7% in 2024.

It comes after recent data from the National Statistics Institute revealed housing stock was shrinking in Portugal with 10 houses sold for every new one built between 2018 and 2022.

Amanda Collison at Property Market-Index said: “Contrary to predictions in some quarters, our latest research report into Portugal’s property market shows that it remains vibrant, and investors are bullish about prospects for the next three to five years.

“Interest from wealthy expats from across the globe continues to increase, particularly from the USA, UK, South Africa, Brazil, Asia, and Canada. This is mainly due to the appealing visa and Non-Habitual Residence (NHR) tax regime opportunities, and potential political and economic challenges in other countries.

Learn more about the Non-Habitual-Residency (NHR) tax regime...

“From the onset of 2023, a significant increase in investments from affluent international investors and relocators has been recorded in Portugal. As we go into the third quarter of 2023, Portugal has already surpassed the total assets in real estate in the previous year.”

She adds: “The biggest draw for Portugal is the culture, heritage, weather, quality of life and the incentives for investors and wealthy expats looking to take advantage of the visa and tax programmes.

“The Algarve region has seen a 15.3% growth in property prices in the last year, making it the second highest-performing market across Europe.”

Anne Brightman CEO and Founder of Brightman Group, a leading boutique real estate agency in Portugal, commented on these latest findings: ‘’When I moved here myself some years ago from Brazil via the US, it felt so safe and secure and has become such a rich cultural experience.’’

‘’We have seen continued upward momentum in the luxury end of the real estate market in and around Lisbon as well as the Algarve. Investment in regeneration and quality developments continue to make Portugal such an attractive place to invest in property.’’

The webinar was hosted by leading international platform Portugal Pathways, which has offices in Lisbon, the Algarve, New York, and the UK. It specialises in Portuguese visa, tax and investment options and how best to capitalise on the country’s enticing tax schemes for expats.

Steve Philp for the firm added: “We are delighted to have hosted the launch of Property Market-Index’s report on Portugal’s thriving real estate market.

“It confirms that with available properties and new developments limited, prices are set to only to increase.

“While the Golden Visa scheme is under consideration, there are still a number of ways to capitalise on Portugal’s enticing way of life and tax schemes available for affluent expats.

Learn more about the recent changes to the Golden Visa programme...

“Among them, the Non-Habitual Residence (NHR) tax regime which offers 0% tax on non-Portugal derived passive income such as dividends, royalties, and certain rental income - and just 10% on pensions for those domiciled in the country.

“For wealthy people’s succession planning it also has advantageous inheritance rules compared, for example, with the UK.”

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