Portuguese property market boosted by expat buyers

Portugal’s booming real estate sales during 2017 were boosted by increased interest from foreign buyers.

Portugal have been a favourite destination for expats from the UK for several decades or more, but foreign buyers from across the world boosted sales figures to an impressive high during 2017. Data compiled by real estate professionals shows some 25 per cent of homes sold last year went to foreign buyers, with the French and Brazilians heading the pack, followed by Britons and the Chinese.

During 2017, some 150,000 properties were sold via real estate agents, a 30 per cent increase over sales figures from 2016 which doesn’t take into account private sales. The increase was predicted by a number of top realtors, who now believe a continuing boom in the market during 2018 will boost sales numbers yet again. According to a recent study, property prices are expected to grow by at least six per cent annually for the next five years, with rising prices not expected to dampen down the demand by foreign buyers.

However, real estate agents are concerned about the effect on the domestic market of continued price hikes, with some predicting a fall in purchases by Portugal’s middle class, especially in the country’s capital and larger cities. For example, Lisbon’s average square metre price at the end of last year was €2,796, 37 per cent higher than in December 2016. Square metre prices also increased in Porto by 23 per cent and by 18 per cent in Faro. Real estate professionals are concerned that Lisbon prices might top €7,000 per square metre, but agree that expat Brazilians in particular would still be happy to pay the going price as the wealthy are desperate to emigrate.