Foreign buyers are setting new records in property purchases across Portugal. The country has been increasingly drawing the attention of foreigners, whether they’re investors seeking opportunities, individuals looking for a second European home, or those considering permanent residency. According to a recent study released by Portugal’s National Institute of Statistics, the acquisition of properties by individuals without tax residency in the country reached a record high of 11.4% of all sales made in 2022. In the previous year, 2021, this percentage was 6.4%.
The real estate market in Portugal is experiencing unprecedented demand! In 2022, a total of 170,000 properties were sold, generating a turnover of nearly 32 million euros. Out of this, foreigners contributed 3.6 million euros.
Remarkably, Portugal’s real estate sector achieved a milestone by surpassing 30 million euros in business for the first time. The average selling price stood at 189,000 euros, marking a 12% increase compared to the previous year, 2021.
Algarve and Greater Lisbon are the favored regions among international visitors
The Algarve region led the way with 26.2% of foreign transactions, securing the top position. Following closely is the Greater Lisbon region, accounting for slightly over 20% of the transactions.
Foreign buyers are playing a growing role in shaping the Portuguese real estate market. Statistics reveal that the average expenditure by foreign buyers significantly exceeds that of local residents. While a tax resident in Portugal spends approximately 180,000 euros on average, a foreign buyer spends around 280,000 euros.
Which is the best region in Portugal to buy a property?
Algarve is undoubtedly a fantastic and charming region, with an excellent quality of life. It’s no wonder that the region is at the top of the preference list for global buyers. However, it’s important to be cautious when choosing the ideal region to live in Portugal. The decision is subjective and should take into consideration various factors.
As I mentioned here in the blog, I’m also an expatriate who decided to live in Portugal. I’m Brazilian, naturalized Italian. My family and I had to go through the entire process of relocation, including choosing the region and city to settle in Portugal.
Several factors guided our decision, including: 1 – Excellent schools for our two young children, 2 – Welcoming international community for expatriates, 3 – Friendly and residential neighborhood, and 4 – Pleasant climate.
We decided to live in the Lisbon metropolitan region, near Cascais. Want to know which region we chose? I explain in detail what guided our decision and which region in this article: 7 Best Places to Live in Portugal for Expats 2023
Looking for the ideal property in Portugal?
I’m Bruna Barros, a partner at CAP International, a global real estate agency specializing in Portugal. I aim to be your trusted ally throughout your property buying journey. My role extends beyond mere property mediation—I’m here to guide you every step of the way, whether your goal is investment, a second home, or a permanent move to Portugal. Let’s chat on WhatsApp right away: Click here to start the conversation now via WhatsApp