The end of the "golden visa"? Americans continue to buy more houses in Portugal.

The quality of life, climate, safety, hospitality, and good health and education systems are attracting more and more foreigners to buy luxury homes in Portugal. Many were also attracted to the golden visas, which are soon to be phased out for real estate investment - after government and parliamentary approval, all that remains is for the program to end after more than a decade of operation. But even that is not stopping foreigners from buying luxury homes in the country, especially Americans particularly interested in Lisbon.

"The luxury market in Portugal has grown significantly in recent years," according to Tatiana Vale, director of marketing at Berkshire Hathaway HomeServices Atlantic Portugal. American interest in the Portuguese market is growing. "They have become the leading buyers of luxury properties in the Lisbon region," the expert explained in a press release.

Let's get to the numbers. In 2022, 6% of homes in the country were purchased by foreign nationals. And Americans make up 15% of that number, with 40% of them choosing Lisbon. "Competitive pricing and a rising dollar are among the factors increasing Americans' interest," she added.

The real estateagency of multibillionaire Warren Buffett "33% of the company's 2022 real estate transactions were made by U.S. citizens, and most of them wanted to take advantage of the golden visa program," highlighted Michael Vincent, CEO of Berkshire Hathaway HomeServices Portugal Property.

When it comes to the prices of luxury homes sold by estate agents in Portugal, Michael Vincent claims that "the average selling price is around €850,000". And that price continues to rise: "Last year we noted an 18% increase in real estate prices in Portugal. A 10% growth is expected this year," the executive pointed out.

The Berkshire Hathaway HomeServices European market report for summer 2023 also points to three prevailing trends in the luxury market in Portugal: demand for properties with environmental certifications, sustainable materials and eco-friendly design; convenience and proximity to amenities that allow buyers to "live the local life"; and properties that allow for a more relaxed lifestyle.

The global real estate market has been changing for some time, from pandemic to rising interest rates. And there are other factors affecting foreigners buying homes, such as political instability, approaching elections and changes to golden visa programs. These factors are clearly visible in the UK, Portugal and Greece.

In Portugal, the golden visa program will no longer include real estate investments, a change proposed in Mais Habitação, awaiting final presidential confirmation. And in Greece, the monetary threshold for a five-year residence visa will increase from 250,000 euros to 500,000 euros as of August 1.

Although all of these factors have caused caution among investors who have decided to pause their purchases, prices for luxury home sales and vacation rentals are rising across Europe. Again, the main role is played by Americans, who are also active in markets such as Spain (a 25% increase in US investors from 2019 to 2022).

The growing interest of Americans in buying homes in Europe is due to several factors cited in the report: relatively low cost of living, favorable exchange rates against the U.S. dollar, good transportation infrastructure, and a stable political and economic situation.

"The cities that are changing rapidly in Europe are those that are getting the attraction of companies," the report concludes. An example of this is Málaga, a city that attracts companies such as Google, Bombardier, Siemens and Oracle.