The demand for luxury homes in countries such as Portugal, Greece, Italy, and Spain by high net worth foreign buyers continues to stand out despite the current uncertain economic context, according to Berkshire Hathaway HomeServices.
Warren Buffett's real estate company explains that the “quality of life” in these countries has helped to keep up the level of interest from foreign investors. These are destinations with sun, beach, golf courses, good gastronomy and also tax benefits.
According to a study by the real estate agency, Europe is the preferred destination for foreign buyers, particularly countries on the Mediterranean arc. The euro-dollar parity has piqued the interest of Americans and Canadians, especially in Italy and Greece, which also offer favourable tax breaks.
Following the coronavirus pandemic, interest in these zones has grown, especially for managers and employees who can work remotely. This increase in demand is causing the supply, particularly of luxury properties, to become scarce in many markets.
The Portugal appeal
Portugal is attracting buyers from the US and the rest of Europe, despite a limited stock of luxury homes, according to Joe Pyke, managing director of the company's Portugal office. “We're seeing buyers mainly from the UK, because there's a lot of English spoken here. We're also seeing an influx of buyers from the US, especially from the West Coast, probably because of the unbeatable weather. The cost of living is also very cheap, as is health insurance,” he explained.