Where did foreigners buy the most houses in Portugal in 2023?

Portugalnoticed an increase in the contribution of foreign buyers to the purchase of housing, both in terms of the number and value of total housing sales. However, one region stood out in terms of investment by foreign buyers with residency outside Portugal: it wasAlgarve.

According to Portugal's National Statistics Institute (INE), “Home purchases by homebuyers with a place of tax residence outside Portugal in 2023 were mainly concentrated in the Algarve (29.9 percent), followed by the North (17.5 percent) and the GreaterLisbon.

In the Algarve, home sales to foreign buyers accounted for 27.2 percent and 38.5 percent, respectively, of the total number and value of transactions in the region. In the North, Central, West and Tagus Valley, the GreaterLisbonIn the Autonomous Region of the Azores, the relative weight of such purchases compared to 2022, both in terms of number and value, increased by more than one percentage point.

It should be noted that saleshousesin Portugal fell 18.7 percent in 2023, hitting a seven-year low, to 28 billion euros, down 11.9 percent from 2022.

Local buyers purchased homes worth 24.4 billion euros, while foreign buyers bought 3.6 billion.

In 2023, the category's statewide relative weight was 87.3 percent, the lowest since 2019 and reflecting a 1.3 percentage point decrease from the 2022 percentage.

Regarding the average transaction value, in 2023 each residential property was sold for an average of €205,193, which decreases to €193,830 if the buyer is a local resident. Foreign buyers purchasedreal estatefor an average of €276,897 in the case of the European Union category, while the average for other countries was €405,082.