Foreigners have purchased 11% of real estate in Portugal.

According to analyst firm JLL, 190,000 homes were sold last year, a nearly 20 percent increase from 2020.

It was the "best year ever" for the real estate market, with foreign buyers accounting for 11 percent of total transactions.

As JLL clarifies in the report, residential was the fastest growing real estate sector in 2021, surpassing all previous levels of activity.

Last year, JLL estimates the number of homes sold at 190,000 units, up 18 percent from 2020 and 12 percent from 2019 (which was also a record year for the national housing market).

Of the 190,000 homes sold, 89 percent were purchased by domestic buyers, a''About 11 percent are foreign.

"The market has a strong potential that should continue into 2022, heralding another year of high activity," says the consultant, noting that changes to the golden visa regime should not have a negative impact on the market, "as Portugal is already recognized as a foreign place to live".

Despite this positive development, the supply shortage is still an issue. Joana Fonseca, responsible for research at JLL, points out that the housing stock "has only increased by 1.9 percent in the last decade, which amounts to about 108,500 dwellings, which is less than what has been sold this year.