Real estate is holding up well in Portugal and should end the year with 33 billion euros in transactions.
The housing segment has remained dynamic throughout 2021 and house prices continue to rise, albeit at a slower pace. But that doesn’t mean buyers, who now have the lowest interest rates ever and favorable mortgage terms, have stepped aside. As a result, it is expected that in 2021 alone, 191,000 homes will have been sold, according to consultant JLL.
“In this last straight line of the year (…) it is confirmed that real estate has been fundamental for the recovery of the economy. This is particularly visible in housing, where we see a sector with increased vitality and demand levels that are at historic levels ”, said Pedro Lancastre, CEO of JLL Portugal.
Who buys houses in Portugal?
Portuguese accounted for 60% of transactions, according to data from JLL. “There has been a growing national demand that sees real estate as a safe bet,” explains Patrícia Barão, residential manager at JLL.
Foreigners represent the remaining 40% of home buyers. And it is the Brazilians, English, North Americans, French and Spaniards who were the most active in the housing market in 2021.
“The changes to the golden visa program which will come into force from January 2022 have weighed on international sales, diversifying the range of active nationalities”, explains Patrícia Barão, who specifies that despite these changes planned for the beginning of the year, “international demand is very active”. Indeed, “Portugal is on the radar of foreigners whether it is a question of investing, living or working and the pandemic context has placed our country in the pole position of European countries”.