Foreign investors pour record funds into Portuguese real estate

The restriction of bank financing and the end of golden visas for buying real estate in Portugal have created uncertainty for foreign investors. But data released by the Bank of Portugal (BdP) shows that foreign investors have been more active than before until September this year. This is because foreign direct investment in real estate reached a record high in the summer of 2023 at 30.447 billion euros, up 14% from the same period last year.

Since 2008, foreign direct investment in the Portuguese real estate market has continued to grow, reaching new heights. In the third quarter of 2023, a new record was set: 30.447 billion euros flowed directly from abroad into Portuguese real estate, 14% more than in the same period last year and almost 4% more than in the previous quarter.

In addition, data released by the Portuguese regulator last week also showed that transfers from international investors in the real estate sector totaled 1.137 billion euros between July and September, also the highest in history. The previous high was 1.047 billion euros, recorded in the second quarter of 2022.

If we analyze the transfers of foreign direct investment in real estate for the first nine months of 2023, which amounted to 3.018 billion euros, it becomes clear that this figure is also the highest in the BdP data series that began in 2008.

All these data indicate that foreign direct investment in real estate in Portugal reached an all-time high in 2023.

The announcement of the discontinuation of golden visas further increased the demand of foreign investors for real estate in our country, indicating that there may have been a rush to participate in the program before it ended. Data for the last quarter of 2023 is now awaited to see if the discontinuation of golden visas has had an impact on these investments.

Among other things, the government has also proposed to end the non-resident regime (NHR) from 2024, which could also affect the arrival of foreign families, workers and investors in our country, although a transition period has now been designed for those who can prove that they have already planned to move to Portugal this year. This could also affect the arrival of foreign families, workers and investors in our country, although a transition period has now been developed for those who can prove that they have already planned to move to Portugal this year.