According to the latest statistics released by the INE for the third quarter of 2023, non-EU foreigners in Portugal pay an average of 407,000€ per property against 196,000€ paid by Portuguese domiciled buyers.
This means that in Euro terms, foreigners are now 8% of the market as opposed to 3.3% four years ago. The average value paid by Portuguese buyers however has gone up at a faster rate than both non-EU and EU foreigners, starting as it did from a lower base of 140,000€ four years ago.
In absolute terms Portuguese buyers still have a long way to go to catch up with foreign buyers as the chart below shows:
In terms of the location of the transactions, Lisbon and the North still dominate:
Lastly, as the chart below shows, while it’s hard to quantify to what degree foreign buyers influence prices its important to remember that non EU buyers still just 8% of the market by value and non-Portuguese EU buyers are 4.7%. This is a switch from four years ago the corresponding numbers were 3.3% and 6.6%.
The other interesting thing about the chart above is that the total value transacted by Portuguese residents declined as interest rate increases hit around mid-2022 while that of foreign buyers stayed steady. The average value paid by Portuguese buyers continued to rise through this period as the first chart in this post shows, showing that supply constraints and construction cost increases more than offset the hit caused by interest rate rises.
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