Currently on the European market Portugal is feeding hope. Local market is growing day by day as well as the economy. Additional interest of investors is heated by the program of "Golden Visa", which allows you to get the residence after buying the property.
Chairman of the Realtor Association of Portugal APEMIP Luís Lima believes that by the end of this year, the number of real estate transactions will increase by 30-40% compared to 2015.
The national composition of buyers
In the first quarter of this year, 20% of purchases in the real estate market were made the buyers from abroad. This is 2% less than last year. However, during the study period, the number of purchases by citizens of Portugal significantly increased. Therefore, the share of transactions with foreigners was less than a year ago.
Among foreign investors the most active are citizens of France (26% of all sales). On second place are the British with 18%. 13% of the market - China. Followed by the Brazilians (8%), Belgians (5%) and Swiss citizens (4%).
The most popular destinations for foreign investors are Lisbon, Porto and the Algarve.
The historic center of Lisbon
The crisis has overtaken Portugal as many other countries, in 2008. Prices per square meter fell until 2013. 2013 was a turning point. Only in the center of Lisboa it was registrated1340 purchases totaling €291 million. The next 2 years the positive trend has continued.
In 2015, the average price per square meter of housing in the center of Lisbon varied between €3,500 and €4,000, despite the fact that until 2013 the center of the capital of Portugal, was not very popular among buyers. According to Ricardo Guimaraes, editor of LUSA, "it was an abandoned desert area".
If we compare the figures of 2015 with 2008, it appears that over 7 years of sales in the historical center of Lisbon grew by 80%. In 2015 was committed 2199 purchases totaling €708,500,000. In 2008 was only 443 transactions in the amount of €160,900,000.
Porto and North of Portugal
Many foreigners acquire real estate in Porto - second city in population and economic importance. During the global crisis of 2008, property prices in the whole the Northern part of the country fell by 35%. In the last 3-4 years they have stabilized and in some areas, there is even some prices increase. This applies to the Porto city center and port area of Fos, which is located near the Douro river.
It should be noted that the crisis "hit" mainly by cheap objects and houses of the middle price category. Real estate sales in the sector from €500,000 or more, of course, slowed down, but prices were stable.
In Porto there is a wide choice of properties to suit every taste and budget — not only flats and houses but also spacious villas. Housing prices in Porto are quite comparable with the capital. The cost per square meter is from €3,000 to €5,000. The houses with the ocean view are sold on average €6,000 per square meter.
Buying property in Portugal: some nuances
- All costs in support of the transaction amount to approximately 7% of the purchase price, including stamp duty, notary fees (approx €700), lawyer (1%).
- In case of lack of his own funds, the foreigner may apply to the Bank for a mortgage loan. Conditions for non-residents are acceptable. Banks are generally willing to loan 50-60% of the object cost.
- The program "Golden Visa" allows to receive a residence permit to foreigners who buy real estate for at least €500,000. Since 2015 there is a cheaper way to become a resident of Portugal - you need to purchase for €350,000 the property, which was built at least 30 years ago or is in the areas of cultural and historical heritage and restoration of the urban environment.
- After 6 years resident of Portugal are eligible to apply for citizenship.
Text – Alena Eliseeva, ee24
Photocredit Depositphotos.com