Portuguese property market “remains strong”

By Kim Schiffmann, in News, Property, Business · 12-02-2021 01:00:00 · 15 Comments
Portuguese property market “remains strong”

Over the past ten years, the property market in Portugal has demonstrated very promising increases with prices for buying or renting a house steadily increasing.

2021 has brought on a new set of challenges though and now we want to know what has changed.

The Portugal News spoke to Pedro Fontainhas, Managing Director of APR (Associação Portuguesa de Resorts), to find out how the property market has handled the challenges of Covid 19 and Brexit and what areas and markets are trending right now.

Firstly we wanted to know how the pandemic has affected the interest in the Portuguese property market. Pedro told us: “The pandemic has brought homes to the centre of our lives, so now we are demanding more and better requirements from them: more expansive areas, balconies and gardens, sparsely populated areas, proximity to health, education and leisure services, energy efficiency, security and investment protection. These characteristics are typical of any of our member resorts, who play an essential role in making and sustaining Portugal the best destination for Residential Tourism in Europe.

“The pandemic has further reinforced international buyers’ interest, while the national audience is proving to be no less attentive and sensitive to the arguments for living in a resort. Therefore, the industry remains fully ready to convert the heightened demand into business as lockdown measures ease.”

The pandemic also had an effect on the area that people are interested in, though in most places the property market stood firm. “The property market in Portugal remains strong even after almost one year of dealing with the Covid crisis. According to INE data, in Q3 2020, prices were growing 7.6 percent higher than Q3 2019, but not in the Lisbon region, which seems to reflect the new post-pandemic homebuyers’ new requirements to live outside congested areas, in safer environments outside large cities.”

With 2021 also came Brexit, which actually increased requests from the British market. “We always suspected that Brexit would trigger many people in the UK to reassess where they want to live and what they want from their lifestyle. With the impact of Covid overlaying that, life in Portugal has even more appeal to many families, leading to a surge in interest from those looking for something more than they currently have.

“Moving to Portugal may make much economic sense too. The Non-Habitual Residents’ regime offers material tax incentives to anyone moving their fiscal residence to Portugal. And Brits should now consider the golden visa programme that provides a residence permit in Portugal, and access to the Schengen area, for investors in different areas such as real estate,” Pedro explained.

The interest in property in Portugal was not exclusive to the British market though and recent data show that the Portuguese themselves are the frontrunners. “In an extensive marketing campaign coordinated by APR from September to December 2020, the domestic market accounted for 34 percent of all 2,000 leads. The remaining inquiries originated in 28 countries. However, five countries, Spain (45 percent), UK and Ireland (22 percent), Brasil (17 percent), and the USA (14 percent) produced 97 percent of the international total. Globally, 43 percent of inquiries were about buying a new primary residence, 31 percent about purchasing a second residence, 14 percent purely for investment and 12 percent for non-specified reasons. Unsurprisingly, the Portuguese market differs. The number of people looking for a second residence matched the number searching for a primary house at 35 percent,” Pedro concluded.


Comments:

I forgot to add sitting inside with all the windows shut and Aircon on whilst paying some of the highest electricity prices in the EU.Even though Portugal is one of the poorest members with the lowest wages.Petrol too.

It would be rude for not to also mention dogs.Dog barking is everywhere day and night and will likely drive you to despair.
Dog owners in Portugal are one of the most selfish inconsiderate band of people on the planet.

Woof woof woof woof

By James from Algarve on 15-02-2021 03:04

Wakey, if you've had run-ins with Portuguese 'bureaucrats' or GNR, it's no surprise. You're an idiot!

By William from Other on 13-02-2021 05:37

One of the biggest problem with this paper is that it attracts fruit loops who seam to think that the Algarve is Portugal.
If you are not happy with the way the Portuguese run there country then GET OUT and go back home....GET A LIFE

By Philip from Other on 13-02-2021 09:10

Your article is 100% misleading and incorrect and perhaps you will consider writing another one based on the truth namely: Over the past ten years, and especially once the Portuguese Government created a myriad of Tax breaks such as the infamous GOLDEN VISA PROGRAM & The non-habitual residence (NHR) tax regime, introduced in 2009, simply put, selling Portuguese Passport to most foreign entities for a fee, the property market in Portugal has seen radical bubble scenario increases with prices for buying or renting a house also increasing radically, in many areas doubling, tripling and even quadrupling with the same bubble scenarios, ousting tens of thousands of families, mostly in rental accommodation from they residences.

By Miguel Diogo from Lisbon on 12-02-2021 09:08

Wakey and Caveat Emptor have covered the main points.
Amazingly there is at least one facebook page in Portugal run by native Portuguese lawyers and a mix of others (Portugal pela verdade) .... that is agitating for the Truth. But no one there - being lawyers - specifies what Truth they want?
Truth just about Covid and how many actually died in the illegal Care Homes?; Truth about corruption; misleading advertising and news (like here - anything by estate agents)?; truth about the white washing of recent Portuguese history so hiding the trauma of the 1890 Ultimatum and the Contra os Bretoes anthem from today's ex-EU British?; failure of public administration and the justice system in Portugal?; the truth about Salazar Purges etc? .... or a wider Truth; more metaphysical - so questioning what nowadays is the Truth?
Asking who is telling us what is True and can we trust their agenda?

By Truth will out from USA on 12-02-2021 07:32

Yeah, the fruitloop must be a supporter of Agent Orange. Only those people are stupid enough to hold two completely diametric views and try to justify it.

By David from USA on 12-02-2021 05:33

ALL right, dont forget that all the real estate agents are all in PANIC, trying to sell fast as they see a frozen markets, no Brits and no AL businesses...
PRICES ARE GOING DOWN

By Matheo from Algarve on 12-02-2021 05:28

PRICES ARE GOING DOWN.
there are no deals closed for the past 4 months. everything is frozen and people are in deep stress. DO NOT BUY, stay low and wait for the post summer total crash as toursits will not be coming and everyone will go bankrupt.

By Matheo from Algarve on 12-02-2021 05:18

Strange as it may seem, but fascism and communism are two sides of the same coin, both have control led economies and total control of the people.

By Geoff Townley from UK on 12-02-2021 02:53

In my experience "Johnny foreigner" is treated with utter contempt by authorities.
We are made to feel they are doing us a favour.
If you are thinking of investing here you need to know the pitfalls,of which there are many.
Unless you are planning to live in the middle of nowhere,don't for one second think you can sit outside and enjoy quiet nights from spring to winter.
You will be blasted by the noise of hotels,bars,clubs,AirBnBers and the rest.
There is no regard for noise limits,there is no control of noise limits,so your holiday paradise rapidly becomes holiday hell hole.
You will end up sitting inside with all the doors shut and with the aircon on,if lucky enough to have that.

Be warned.

There are environmental laws on the books,but try getting anyone to listen or worse,enforce them.

By James from Algarve on 12-02-2021 12:55

Quote;
Then there’s the Portuguese paramilitary police thugs, gnr, who are hating the people, especially hate foreigners, who they harass and murder, Portugal is a communist police state! UNQuote.
WHERE is your EVIDENCE for the above quote and saying the ridiculously stupid comment that you can be finedfor " walking on ants" Dream on, or do they have specially trained people on the lookout for offenders- as if anyone could even see that !!!!

By Karen from UK on 12-02-2021 12:46

Quote;
Then there’s the Portuguese paramilitary police thugs, gnr, who are hating the people, especially hate foreigners, who they harass and murder, Portugal is a communist police state! UNQuote.
WHERE is your EVIDENCE for the above quote and saying the ridiculously stupid comment that you can be finedfor " walking on ants" Dream on, or do they have specially trained people on the lookout for offenders- as if anyone could even see that !!!!

By Karen from UK on 12-02-2021 12:05

Some real fruitloops this page attracts. Portugal is both fascist, and communist?

By Paul James Gay from Lisbon on 12-02-2021 11:29

Portugal is a fascist communist country, and

One of The main aims of communism is the abolition of all private ownership of all property!
Plus corruption the huge corruption within Portuguese councils who refuse to give permits, or willingly start legal cases against property owners, to terrorise them.
In Portugal, councils can fine people for walking on ants!
Portuguese so called environmental bureaucrats are nothing less than communist commissars who will give out huge fines, they just make up some case against you, and ruin your life!
On top of this Portugal has a 3rd world health care system, with huge a shortage of qualified doctors, and totally unprofessional staff, where also foreigners are raciallly abused by Portuguese hospital operatives.

Then there’s the Portuguese paramilitary police thugs, gnr, who are hating the people, especially hate foreigners, who they harass and murder, Portugal is a communist police state!

You want invest your money in portugal? Are you sure?




By Wakey from Algarve on 12-02-2021 10:24

Hoorah an estate agent tells us the property market is strong.Well that's fine then isn't it?
I have never come across any agent across the world that hasn't told me the market isn't busy and booming,
Buyers in Portugal need to be very very careful about noise laws,or the lack of enforcement of them.
It seems that living in a residential area does not offer protection from the above.
Councils seem to not give a damn.

Caveat Emptor.

By James from Algarve on 12-02-2021 07:28
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