According to reports, the current surge in Portugal's real estate investment continues to rise. With the ongoing increase in rental prices in Portugal, more and more residents are choosing to buy their own homes. The prosperity of the Portuguese real estate market has also attracted the attention of many overseas investors, especially after the introduction of the Portuguese property immigration policy, many Chinese investors looking to allocate overseas real estate have turned their eyes to the Portuguese real estate market.
Data released by the Portuguese Real Estate Companies Association shows that during the most challenging times for the Portuguese real estate industry, the rental market accounted for nearly 60% of the total transaction volume in the real estate market. However, in the past two years, the Portuguese rental market has begun to shrink, accounting for only 25% of the total share of the real estate industry by 2016, with more and more Portuguese residents joining the property investment market, transitioning from renting to buying. Currently, there is a strong surge in home buying in the suburbs of Lisbon and Porto.
Industry insiders analyze that the continuous decline of the rental market in Portugal and the rise of the home buying market are both due to the ongoing increase in property prices in Portugal.
Data shows that last year, a Portuguese real estate company saw a revenue increase of 36% (over 25 million euros), with home sales rising from 7,250 units to 8,000 units, while home rentals decreased from 4,233 units to 3,500 units (a decline of 21%). Another large Portuguese real estate company also saw a 30% increase in home sales (12,000 units), while the number of home rentals decreased by 16%.
At the same time, property prices in Portugal also reflect a phenomenon of housing shortages. It is reported that the average national house price in Portugal was 130,000 euros per unit in 2015, while last year it was 148,000 euros. In the third quarter of 2016, the average price index of properties in Lisbon, Portugal, increased by 24.7%, with double-digit increases in each of the previous three quarters. The reason for this is that the Portuguese housing construction sector has stopped building new homes, with only a small number of properties entering the market. Currently, Portugal averages only 1,900 new housing units per quarter, while the number of transactions exceeds 30,000 units.
In the context of the continuous warming of the Portuguese real estate market and the shortage of housing, for overseas investors, it is advisable to invest in their desired Portuguese properties as early as possible, especially for applicants of the Portuguese property immigration program. Currently, investing in Portuguese real estate through WorldWay Immigration Group is very easy. The exclusive estate project launched by WorldWay Immigration creates everlasting private wealth and private land for investors, allowing them to enjoy property appreciation or rental income from overseas real estate investments, while also enabling the entire family to apply for EU citizenship and enjoy the most-favored-nation treatment in the EU. This truly represents a win-win situation of both investment and immigration.
For more details on investment immigration to Portugal, please call the WorldWay Immigration Group hotline: 400-138-2929.