Portugal’s property market saw a boom among foreigner buyers in 2017. Actually, foreigners account for 25% of Portugal’s property sales. The majority are from France or Brazil however many Brits and Chinese were also purchasing property here.
Over 25% Year on Year Increase in Property Sales
152,000 properties were sold in 2017. This was a 25% to 30% increase compared to 2016. These figures are only taking into account the number of properties sold through realtors, and not private sales.
House prices are expected to continue growing over the next 5 years. A 6% increase is what is forecasted during this time. But this price increase does not seem to keep foreigners from investing. The lure of good weather, safety, high quality of life are the pay-off. Demand is high and there is not much supply so this trend likely won’t change soon.
Will Locals Be Able to Afford Real Estate?
The challenge will be to try to make real estate affordable to the local middle class. In general, foreigners are willing to pay more than residents to find their dream home and this is not good news for locals.
In December 2017, the average price/m2 in Lisbon was €2,796, which was up by 36.92% from the previous year. Price increases are visible in Porto (23.67%) and Faro (18%) also.
Some estimate the in future years the average price/m2 in Lisbon could even surpass €7.000. With the Brazilian economy booming, and both countries speaking the same language, there are many Brazilians who are willing to pay these high prices. Life is just safer in Portugal than in Brazil.
Stabilizing the Market
Some new development projects have been approved and more are in the pipeline so this may help regulate the prices as more properties come on the market.