Thursday, November 14, 2024

Golden visas only form 4.2% of the Portugal real estate market

Portugal launched its ARI Golden visa scheme on Oct 8, 2012 offering residence permits to property investors in Portugal. ARI means authorization of residence for investment activity.

 

Since Q4 2012 to Q3 2018,  in six years, Portugal received some €84 billion real estate investment (700,000 properties sold), of which only €3.6 billion received through golden visas during the same period. This represents Golden visas added only 4.2% to real estate investments in Portugal property market, according to latest house sales report by INE.

 

Half of the property sales (€39 billion) invested  in the Lisbon area and €10 billion in Algarve during the same period. In 2017, Portugal investment from property sales hit €19 billion euros highest of any year.

 

Portugal Real Estate Investment in Billions
Portugal Lisbon Algarve
2013 8.3 3.4 1
2014 9.5 4.3 1.2
2015 12.4 5.7 1.6
2016 14.8 6.9 1.7
2017 19.3 9.3 2.2
Q3 2018 17.8 8.7 1.9

 

Portugal real estate investment
Portugal Real Estate Market – In Billions of Euros

 

Housing sales in Portugal

Includes new and existing homes/dwellings

Portugal Lisbon Algarve
2013 99878 29985 9777
2014 84215 26938 8558
2015 107302 35317 11391
2016 127106 44311 12361
2017 153292 53662 14406
2018 132270 47067 11750

 

Golden visa

Golden visa investment
We calculated approximate golden visa investment in Portugal from SEF statistics Dec 2018

 

Country Golden visa
China 4073
Brazil 653
Turkey 295
South Africa 275
Russia 243

 

Chinese alone have invested approximately some €2.3 billion euros in Portugal, almost a half of golden visa investment in Portugal followed by brazilians and turkish

 

Golden visa investment by country
Golden visa investment – Approximate figures calculated from SEF statistics

 

 

Average property price

 

Another significant difference is average property investment per golden visa  €585,000 which is well above the minimum requirement of €500,000 (in Lisbon) and €350,000 (refurbished properties outside Lisbon)

 

The average property price of all the property sales in Portugal during the above period is only  €120,000. This also shows golden visa buyers are buying properties five times the average minimum.

 

Falling House prices

 

The housing prices are beginning to fall in Q3 2018 from peaking in Q1 2018

 

Portugal house prices

 

Home Sales in Lisbon, Algarve
Total Old and New home sales in Portugal, Lisbon and Algarve from 2009 to Q3 2018
Prabhu Balakrishnan
Prabhu Balakrishnan
Founder of Citizenship by Investment News. Chief Editor with over 15 years experience in PR and News publishing. He Loves writing about citizenship, residency and wealth migration. CIP Journal is a Leading publication founded in 2017 bringing latest news from CBI/RBI market.

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