Dear homes: Portugal ranks among the top ten countries preferred for investment.

Portugal continues to attract the attention of international real estate investors, despite recent legislative changes that have put an end to the golden visa program and the tax regime for non-residents. This conclusion is drawn in the report "The Wealth Report 2024" by Knight Frank, which places Portugal among the ten most popular countries for purchasing luxury properties in 2024.

As part of the research, international investors were surveyed about the countries where they plan to acquire new real estate this year. Portugal ranks ninth in this rating with3.8%the likelihood that investors will choose it for luxury real estate transactions. The United Kingdom ranked first with17.7%, following them are the USA with9.8%and France with7.2%Among the Southern European countries, along with Portugal, Spain and Italy also stand out, as they hold higher positions compared to it.

According to forecasts from Knight Frank, Portugal is expecting an influx of international investors with a net worth of at least30 million dollarsIn 2023, the country recorded800 investorsin the luxury real estate segment, what about3%more than in the previous year. It is expected that by2028In the year, the number of investors will grow to1000what does it mean25%The growth compared to the previous year. The reason for such interest in Portugal remains its reputation as a country with a high level of stability and security.

International buyers seeking luxury real estate come from various countries. Among the markets driving demand for properties in the Algarve, the UK, Ireland, and the northern countries of Europe stand out. Meanwhile, in Lisbon and Cascais, there is a growing interest from American and Brazilian investors, as noted by Alex Koch du Guren, who is responsible for the Swiss, Austrian, and Portuguese markets at Knight Frank.

In fact, prices for luxury real estate in the Algarve increased in 2023 by12.3%compared to the previous year, which is the fourth largest growth among100analyzed cities.

In 2024, the real estate market will face both opportunities and challenges. Economic conditions are becoming more favorable for real estate investments compared to last year. Inflation in various economies seems to be under control, which could lead to a decrease in interest rates soon.2024In the year, what do the European Central Bank and the Federal Reserve System of the USA predict? Additionally, labor markets are showing "strong" results, while construction remains limited, which softens the price correction.

Key opportunities for international luxury markets:

• Reduction of tax and legal barriers.
• Increasing interest in real estate as a method of replenishing an investment portfolio and reducing risks.
• The shift of capital into safer assets, such as real estate.

Nevertheless, investments also come with certain risks that international investors should keep in mind. These include climate change, a shortage of offerings in the luxury real estate market, as well as the upcoming elections in almost70countries that can influence financial flows and affect real estate markets.

Russia was among the countries that held elections —March 10.The legislative elections have taken place, resulting in the election of the Democratic Party Alliance. The program presented by Luís Montenegro includes the implementation of various changes, including a number of initiatives in the real estate sector, such as the possible repeal of many measures from the "More Housing" plan. However, it is still unclear whether any changes are planned for the golden visa program or for the tax residency regime for non-residents, which has been rolled back.

In addition to all this, the geopolitical situation remains complicated by the war in Ukraine and the recent escalation of conflict in the Middle East, triggered by the worsening relations between Iran and Israel. Markets are monitoring the potential for further escalation of the conflict, and the impact of this situation on energy prices could affect inflation in various countries, which, in turn, may delay the easing of monetary policy by central banks.