LONDON: Recovering Portuguese economy is being bolstered by continuous support from foreign investors. The country succeeded in attracting many investors from all around the world to help steer it away from its crisis back in 2010.
Real Estate Market Continues to Rise in 2019
According to the National Institute of Statistics (INE), in the first quarter of 2019, housing prices increased by 9.2%. There was a 10% increase in the value of already existing houses whereas newly developed houses registered a 6% increase. These values are a little shy off of those from the previous year, in which the overall price increase in the real estate market reached above 12%.
Even though price increases aren't as steep, demand remains very strong and there is a clear shortage of supply against the demand. Part of this mismatch is due to the continuing demand in the Portugal Golden Visa Program, which strengthens our prediction that the real estate market will continue to rise in 2019. CBRE's Research department increased its real estate investment forecast to 3 billion euros for 2019, signaling an expectation of an increase in real estate investments in the second half of the year.
According to EY's Attractiveness Survey, Portugal is one of the most attractive countries in Europe. The real estate and construction sectors are regarded as the growth engines of the country, as well as the tourism and ICT sectors. The developments in the real estate sector are also affected positively by Portugal's position as the 3rd safest country in the Global Peace Index. Portugal consolidates its strong image in the global market and provides a safe investment environment for numerous international investors.
Portuguese Golden Visa Applications are at a 16-Month High
According to The Portuguese Immigration and Borders Service (SEF), in July 2019 a total of 155 new main applicants were awarded their Portuguese residence permits. The total investments for the month add up to 98.3 million euros. This is a record high number after March 2018.
Chinese are still in the lead with 40 new applicants in July, followed by Brazilians with 37 new applicants. The recent rise in the number of Brazilian may threaten the current Chinese hegemony in Golden Visa applications in Portugal.
Charles Taylor Harris, Executive Director of The Get Golden Visa explained that Most applicants for the Portuguese Golden Visa program come from China, Brazil, Turkey, South Africa and Russia, according to statistics released from SEF. Investors from these countries are continuing to invest in Portugal in noticeable numbers, whereas a collection of different nationalities that keeps shifting contributed to 62 new applicants in July 2019. We have many investors from different countries that are attracted to Portugal due to its safety, charm, good weather, and attractive lifestyle. Portugal Golden Visa Program is quite in demand especially because it can lead to citizenship.