Who are the foreigners looking for a mortgage loan in Portugal?

In the summer of 2023, the demand for mortgages to buy property in Portugal continued to be stable among foreigners and Portuguese expatriates who are interested in buying more expensive homes and requesting a higher amount of financing from the bank. They come from all over the world to Portugal in search of security and a better quality of life, with families from the UK and Brazil being the most active borrowers. However, it is Americans who have the most purchasing power and prefer to buy real estate at higher prices.

This overview of mortgage requests to buy real estate in Portugal by non-residents (emigrants and foreigners) is contained in the latest''quarterly report idealista/créditohabitação.

It is immediately apparent that families living outside our country have greater purchasing power, seek more expensive housing and request higher amounts of financing compared to the overall demand at the national level:

• The average income of non-residents was €5,463 per month in the third quarter of 2023, 55% higher than the total amount of applications during this period. According to the report, "around 50% of applicants have an income above €4,000";
• The average asking price for buying a house was €217,089, 16% more than the total amount;
• The average requested mortgage loan amount from the market survey was €155,598, 10% more than the total amount';
'applications.

It is also worth noting that non-residents contribute more equity to home purchases (on average, they request 72% of financing compared to 76% of the national amount) and delay investment timelines, as the average age is 43, while the national average age is 40 during the same period.

The data also shows that from July to September 2023, foreigners and expatriates had more purchasing power, sought more expensive homes and requested more bank financing than in the previous quarter - all quarterly increases of about 6%. Compared to the previous quarter, the financing rate remained at 72% and the median age increased from 42' to 43''years.

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From which countries is there the most interest in mortgage lending in Portugal?

When analyzing the country of origin of non-residents seeking a mortgage loan in Portugal, it is noticeable that the greatest interest is shown by residents of Europe.

"Applicants from the United States stand out with an average family income of 8,534 euros," indicates the report. Of all the countries analyzed, those coming from the United States have the greatest purchasing power and''11.5 percent, respectively,' indicates the report for the third quarter of 2023.

These areas also present the highest purchase prices and required lending amounts in the third quarter of 2023 - because this is where real estate sales prices are higher. In Lisbon, Faro and Porto, non-residents want to buy a home priced above 240 thousand euros (on average). And in these areas, they request loans for the purchase of housing of greater value (from 179 to 200 thousand euros).

"There is a noticeable trend of mortgage loan applications from non-residents in coastal areas," emphasizes the report idealista/créditohabitação. 'The interior of the country is less attractive and there are even areas with less than 1% of applications, such as Bragança, Guarda, Portalegre, Évora and Beja.''It should be noted that it is in Beja, Castelo Branco and Bragança that lower value home loans (less than 60 thousand euros) are requested for the purchase of more inexpensive housing (less than 90 thousand euros).

Financing percentages range from 57% in Bragança to 88% in Guarda. Non-residents request mortgages with a maximum average age of 58 in Portalegre and a minimum average age of 38 in Bragança.