The end of golden visas? Americans are increasingly buying homes in Portugal.

The quality of life, climate, safety, hospitality, and quality medical and educational services are attracting more and more foreigners to buy luxury homes in Portugal. Many are also attracted by the luxury visa program, which is expected to end soon for real estate investment - once approved by the government and parliament, the only thing left to do is to await a presidential visa for the program to be discontinued after more than a decade of existence.

But even that is not deterring foreigners from buying luxury homes in the country, especially Americans who have a particular interest in Lisbon. "The luxury market in Portugal has grown significantly in recent years," says Tatiana Vale, director of the'Berkshire Hathaway HomeServices Atlantic Portugal. Americans' interest in the Portuguese market is growing. "They have become the main buyers of luxury properties in the Lisbon region," explained the specialist in a press release sent to editors. Let's look at the numbers. In 2022, 6% of home purchases in the country were made by foreign nationals. And American citizens account for 15% of that number, with 40% of them choosing Lisbon. "Competitive prices and the rising value of the U.S. dollar are some of the factors increasing the interest of Americans," she adds.

Michael Vincent, CEO of Berkshire Hathaway HomeServices Portugal Property, noted that "33% of the real estate purchases realized by the company in 2022 were from the United States, and most of them sought''take advantage of the elite visa program'." He also added that "Portugal has been recognized as the best place to retire in the World Index," the CEO told the paper. Michael Vincent.

When it comes to the price of luxury homes sold by a real estate agency in Portugal, Mihail Vincent said that "the average selling price is around €850,000." And this price continues to rise: "Last year we saw an 18% increase in real estate prices in Portugal.

The Berkshire Hathaway HomeServices report on the European summer 2023 market

The Berkshire Hathaway HomeServices report on the European market for summer 2023 also points to three trends that dominate 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';
• real estate that promotes a more lax lifestyle;

Changes in the luxury visa program around the world are creating challenges for foreign investment. The global real estate market has been undergoing significant changes in recent years, from a pandemic to rising interest rates. And there are other factors affecting foreigners buying homes, such as political instability, approaching elections and changes to elite visa programs. These factors are clearly visible in the UK, Portugal and Greece. In Portugal, the elite visa program''would exclude real estate investments, a change proposed in the housing program awaiting final approval from the president of the Republic. In Greece, the monetary threshold for obtaining a five-year residence permit will increase from 250,000 euros to 500,000 euros as of August 1.

While all of these factors are causing caution among investors who have decided to take a pause in buying, prices of luxury homes for sale and vacation rentals continue to rise across Europe. Again, Americans are playing a key role and remain very active in markets such as Spain (U.S. investor growth of +25% from 2019 to 2022). The increased interest of Americans in buying homes in Europe is due to several factors cited in the paper: the relatively low''cost of living; favorable exchange rate relative to the U.S. dollar; good transportation infrastructure; stable political and economic environment. "The cities where the fastest changes are taking place in Europe are those that have the advantage of attracting companies," the report concludes. An example of this is Malaga, a city that attracts companies such as Google, Bombardier, Siemens and Oracle.