Foreign demand for homes priced above €1 mn in Portugal has reached a four-year low in 2024, Invest-Gate reports.
Data from real estate platform idealista indicates a decline in interest from foreigners in luxury homes for sale in Portugal, with foreign demand now accounting for 22.8% of the total demand, marking the lowest level since the end of 2021.
The most significant drop in interest from foreign buyers seeking to invest in luxury homes in Portugal occurred shortly after the cessation of new gold visas on October 7, 2023.
This data suggests that the discontinuation of golden visas, coupled with legislative instability, including the end of the non-habitual resident regime at the beginning of this year, has had a negative impact on the demand for luxury homes among foreigners in Portugal.
Compared to the first three months of 2023 when the former socialist Government announced the end of golden visas under the Mais Habitação (“More Housing”) program, foreign demand has decreased by 5.8%.
The termination of golden visas has particularly affected Portugal’s appeal as a real estate investment destination abroad and has influenced competitiveness among European countries in attracting capital, although other countries, such as Spain, are also planning to end their golden visa programs.
Nevertheless, Portugal’s quality of life continues to be internationally recognized, along with its excellent healthcare and education services, gastronomy, landscapes, and climate.