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POSSIBLE EXTENSION FOR GOLDEN VISA PROGRAM
Portugal has become a firm favorite destination for overseas buyers in recent years thanks to its favorable living conditions and government incentives. And while there may be changes on the way for its Golden Visa program, there is still much attracting investors to the country.
Tatiana Vale, Marketing Director at Berkshire Hathaway HomeServices Atlantic Portugal, explained: “The luxury market in Portugal has grown significantly in recent years. Various conditions are having a positive impact on the real estate market, including Portugal’s status as the fourth most peaceful country in the world, its excellent quality of life, the hospitality, advanced healthcare, weather…these all contribute to investors seeing Portugal as a great option.”
Vale stated that there are three trends that are prevalent in the Portuguese luxury market. The first is a demand for properties with the likes of environmental certifications, sustainable materials, and eco-friendly design.
The second; convenience and proximity through walkable amenities that allow buyers to “live the local life” and, the third trend, properties that allow the opportunity for a more relaxed lifestyle.
Interest in the Portuguese market from Americans is growing according to Vale. “They have emerged as the top buyers of luxury properties in the Lisbon region,” she explained, adding that, in 2022, 6% of home purchases in the country were by foreign citizens. U.S. citizens made up 15% of that number, and of those American buyers, 40% chose Lisbon.
“The competitive prices and appreciation of the U.S. dollar are some of the factors increasing interest among Americans,” Vale added.
Portugal’s Golden Visa program looked set to wind down this year, but Michael Vincent, CEO of Berkshire Hathaway HomeServices Portugal Property, shared some good news: “Just recently, the Portuguese parliament has discussed extending the Golden Visa program until December 31st, 2024.”
He stated that 33% of the company’s buyers in 2022 were from the U.S. and the majority of them wanted to pursue the Golden Visa. “Portugal has been recognized as the number one place to retire in the Global Retirement Index,” Vincent added. “The Prime Minister understands that foreign money is important. But we’re telling our clients—right now, it’s on the table. Get it, because once it’s gone it’s gone.”
On what buyers can expect to pay for a luxury property in Portugal, Vincent said, “For the company, our average sale price is about €850,000. I class luxury as anything over €500,000, but prices go up to €40 million for the crème de la crème. In Vilamoura, for example, €500,000 gets you a beautiful condo. In the Azores, it gets you a nice three-bed villa with a sea view—and the Azores are only 4.5 hours from Boston.”
Concluding, Vincent said, “We saw an 18% rise in real estate prices in Portugal last year. I expect a 10% rise this year.”