Purchasing real estate in Portugal: foreigners spend 63% more than locals.
Portugal continues to attract a large number of foreigners who, in turn, invest in real estate due to the country's climate, safety, beaches, and much more. As a result, the demand for homes for purchase continues to far exceed the available supply in the housing market. This imbalance is the trigger for further price growth in the country, quarter after quarter. All households are buying more expensive homes, and in this picture, foreigners ultimately spend 63% more than Portuguese citizens. But where have the Portuguese and foreigners been buying more expensive homes? And by how much have prices increased?
Residents and non-residents
Residents and non-residents buying property in Portugal, all homebuyers in general pay more for the houses they buy in Portugal. However, there are differences in the average prices paid for the sale of houses depending on the origin of the buyer, INE data published at the end of October and analyzed by idealista/news show:
Residents in Portugal
They paid an average of 1,372 euros per square meter for housing over the last 12 months ending in June, which is 14% more than they paid a year ago. It's also 4% more than what they spent in the same period ending in the first quarter of this year.
Non-residents in Portugal
The purchase of a house cost 2234 euros per square meter over the last 12 months ending in the second quarter of 2022, which is 19% more than a year ago. Compared to the same period ending in the first quarter of 2022, houses in Portugal were 3% more expensive for foreigners.
This means that Foreigners buy houses in Portugal that are on average 63% more expensive than residents in Portugal. In other words, a foreign family buys a house of 100 square meters for 223 thousand euros, while a Portuguese family buys a house with the same 100 square meters for 137 thousand euros (-86 thousand euros).
Residents buyers in Portugal
Where do they buy the most expensive houses? INE data shows that tax residents pay higher prices for homes in all 24 municipalities with more than 100,000 residents.
The most significant year-over-year increases in median home sale prices were recorded in Gondomar (+17%), Seychelles, Vila Nova de Gaia, Sintra, and Braga (all with increases of 15%).
The least significant price increases were recorded in Guimarães (+7%) and Odivelas (+8%).
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