Price per Square Meter for Apartments in Portugal Surges by 10.5% in One Year

The real estate market in Portugal has witnessed a remarkable surge in property prices, specifically in terms of the price per square meter for apartments. According to recent data from the National Institute of Statistics (INE), the median value of bank appraisals for apartments reached an astounding 10.5% increase in May 2023 compared to the same period last year. This surge marks the highest growth rate recorded since 2011, when the INE began reporting on this data.

In May 2022, the median value of bank appraisals for apartments stood at 1,689 euros per square meter (euros/m2). However, in May 2023, this figure skyrocketed to an impressive 1,869 euros/m2, reflecting a substantial surge of 10.5%. Such a significant increase in property prices in just one year indicates a robust and dynamic real estate market in Portugal.

The growth was not evenly distributed across the country. The Autonomous Region of Madeira experienced the most substantial surge, with an impressive 20.9% increase in the price per square meter for apartments compared to May 2022. The Central region recorded the lowest growth rate at 8.2%. These variations demonstrate the regional disparities within the Portuguese real estate market and highlight the attractiveness of certain regions for property investments.

Analyzing the data by region, the Algarve and the Lisbon Metropolitan Area emerged as the areas with the highest price per square meter for apartments, reaching 2,141 euros/m2 and 2,010 euros/m2, respectively. On the other end of the spectrum, the Alentejo region reported the lowest price per square meter, standing at 1,108 euros/m2. These variations in regional pricing further emphasize the influence of location on property values.

Moreover, the upward trajectory in apartment prices was not limited to the year-on-year comparison. In just a month, from April to May 2023, the price per square meter increased by 1.3%. The Algarve witnessed the most significant rise, with a substantial increase of 3.6%, while the Alentejo region experienced a slight decline of 0.2%.

When analyzing the specific apartment types, it was observed that T2 and T3 apartments accounted for the majority of appraisals, representing 79.3% of the total evaluations conducted in May 2023. The median value per square meter for a T2 apartment surged by 26 euros, reaching 1,705 euros/m2, while the price for a T3 apartment increased by 5 euros, reaching 1,494 euros/m2.

The remarkable surge in apartment prices in Portugal signifies a flourishing real estate market and heightened demand for properties. As property values continue to rise, it presents both opportunities and challenges for potential buyers and investors in the country’s real estate sector.

 

More questions? Come find us! https://goldenticketinvests.com/

Portugal Golden Visa Statistics – Updated in January 2023

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Portugal Golden Visa is a highly favored residency by investment program in our community. Thanks to its multiple investment options, low stay requirements, and profitable nature, it’s very popular among digital nomads, frequent travelers, and families.

Portugal Immigration and Borders Service (SEF) releases the monthly and cumulative data for Golden Visa. Here are Portugal Golden Visa statistics as of January 2023.

Portugal Golden Visa Statistics for December 2022

According to the latest data released by SEF at the end of December 2022,

  • 151 main applicants received their Golden Visa,
  • 192 family members accompanied the main applicants as their dependents.

Below is the breakdown of the nationalities for December:

  • 25 China
  • 24 USA
  • 21 UK
  • 14 South Africa
  • 10 Brazil

In terms of investment type, here is the breakdown for December:

  • 105 applicants opted to proceed with real estate acquisition
    • 65 applicants for €500,000+ properties
    • 40 applicants for €350,000 renovated properties
  • 46 applicants opted to go for capital transfer
    • 41 applicants for Portuguese Golden Visa funds
    • 4 for capital transfer
    • 1 donation

Portugal Golden Visa attracted €79,164,626.20 to Portugal in December.

All Time Portugal Golden Visa Statistics: 2012-2022

Nationalities That Have Applied for Portugal Golden Visa (2012-2022)

Since the start of the Golden Visa program in Portugal, the Chinese have continuously been the main source of applications. Brazil is second in terms of nationalities, followed by Turkey.

Since October 2012, 11,535 investors have received their Golden Visas and 18,809 family members have accompanied them. €6,754,091,807.50 has been invested in Portugal Golden Visa since then.

Investment in Real Estate: 10,593 residence permits

  • Real Estate / €500,000: 9,108 residence permits
  • Real Estate / €350,000 Urban Rehabilitation: 1,485 residence permits

Capital Transfer: 920 residence permits

  • Capital Transfer in a Portuguese Bank: 535 residence permits
  • Donation to research activities: 1 residence permit
  • Investment Fund: 371 residence permits
  • Capital Transfer + Creation of Jobs: 7 residence permits
  • Donation to cultural heritage in Portugal: 6 residence permits

Creation of 10 Full Time Jobs: 22 residence permits

Changes to Portugal Golden Visa (effective as of January 2022)

In February 2020, the Portuguese Parliament passed a budget proposal that aims to modify the Portuguese Golden Visa program. The parliament’s goal is to encourage investment in low-density areas, urban rehabilitation, employment creation, and cultural heritage preservation.

According to this;

  • The minimum investment amount for the Investment Fund option increased to €500,000 from €350,000.
  • The minimum investment amount for the Capital Transfer option increased to €1.5 million from €1 million.
  • Only property investments made in low-density areas of Portugal are going to qualify for a Golden Visa. This means that purchasing residential property in Lisbon or Porto no longer qualifies. However, commercial properties still do.

The changes to the Portugal Golden Visa took effect on January 1, 2022.

What Else You Need To Know

As we’ve briefly mentioned in the introduction, Portugal Golden Visa is highly popular in our community, especially among the ones from the US. Even one of them, Barbara was so kind to share her journey with us and our readers. Make sure you check out her Portugal Golden Visa journey for the first-hand experience. If you have any questions for her, please feel free to drop us an email and we’ll be more than happy to introduce you to each other.

Tighter golden visa rules highlighted

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In its most recent report, for 2021, on “Migration Prospects 2022”, the Organization for Economic Co-operation and Development (OECD) highlights that since January of this year “stricter requirements for obtaining a “golden visa” have come into force in Portugal.

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“Residence permits for investment will no longer be possible based on real estate investments in Lisbon, Porto, the Algarve and on the coast. Once acquired, properties intended for housing only allow access to this regime if they are located in the Autonomous Region of the Azores and of Madeira or in territories in the interior of the country”, says the part of the report referring to Portugal.

It points out, on the other hand, that “there is, however, no change in the limit amounts for real estate investment, which remains at €500,000 or €350,000 if the building is more than 30 years old”.

“Residence applications for investment for other reasons will be subject to higher investment thresholds. The limit for capital transfers has increased from €1 million to €1.5 million”, says the OECD.

It also says that the minimum requirement for transfers for research activities, participation in investment and/or venture capital funds and the incorporation of commercial companies has increased from €350,000 thousand to €500,000.

“Continuous commitment”

The OECD points out that Portugal has had a “continuous commitment” to promoting “safe, orderly and regular” migration and says that the new version of the National Plan for the Implementation of the Global Compact for Migration is being prepared, which will take into account “best practices, but also current challenges”.

In the analysis of Portugal, the OECD also highlights the work done by the Portuguese government to minimise the effects of the Covid-19 pandemic on the processes of visa and residence permit applications, which have been suspended.

In this sense, it highlights that “all foreign citizens with pending cases at the Foreigners and Borders Service (SEF), who have submitted a request until December 31, 2021, are temporarily in a situation of regular stay in the country and have access to health, social support, employment and housing”.

 

Luxury real estate boom

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The Luxury real estate market continues with record performance over the past two years.

According to Christy Budnick, CEO of Berkshire HathawayHomeServices (BHHS): “The luxury real estate sector has shown a record performance over the last two years.

“Although the real estate market has started to normalise, the top of the market has recently seen a whirlwind of activity in the ‘Luxury Collection’, including a house in Miami (USA), sold at a record price of over of $100 million (€103 million) last week”.

This is one of the conclusions to be drawn from the 2022Global Luxury Landscape Report, recently released by BHHS. The study “explores the perspectives and trends that markets around the world are going through, from an accelerated activity – marked by record sales, bidding wars and limited stock – to a more stagnant period, in which high levels of inflation and geopolitical events will continue to play key roles in determining the market’s tonic”.

The Global Luxury Report highlights the evolution of home buying based on lifestyle choices, preferences and preferred destinations for luxury buyers, as well as which industries are putting markets on the map. Addressing even more trending topics, the report explores real estate in the metaverse, design trends, and the top nine home amenities that the luxury buyer privileges.

“One of the key situations we see as luxury real estate evolves in this new climate is that the world remains even more connected by technology and also by our changing mindset,” says Christy Budnick.

“Luxury real estate requires a global approach and I am proud that our network continues to expand and welcome the best professionals in the sector so that we can continue to offer unparalleled personalised service, driven by the BHHS brand.” adds.

Beat The Portugal Real Estate Boom

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Like practically everywhere else, the real estate market in Portugal has been volatile, to say the least. Portugal is the vacation destination for much of Europe, as well as the UK. It’s kind of like what Florida is to the US.

So during strong economic times, lots of people want to buy vacation homes and permanent residences in Portugal. Conversely, in a shaky economy, the price of new homes can fall. Right now — as COVID travel restrictions begin to loosen but there is still some uncertainty as to what the future will hold — there’s sort of an in-between period for the Portuguese real estate market.

6.27% Increase in Q1 2021

During the first quarter of this year, housing prices in Portugal increased an average of 6.27% compared to the same period in 2020. That may sound like a dramatic increase, but really it’s only because all regions of Portugal experienced significant decreases in housing prices during the COVID crisis, as well as during much of the entire previous decade.

So what does this mean for prospective vacation home buyers looking for properties in Portugal? Well, for one thing, the vacation home market is still uncertain as government officials and other European countries (as well as in the UK) continue to debate whether or not free travel can be reinstated in the wake of falling COVID cases and the rise in vaccinations. As a result, lots of buyers are taking a wait-and-see attitude until real estate market conditions can stabilize.

The End of COVID

For some buyers, however, uncertain conditions could mean there are incredible bargains available today that may not be around in a few months when the coronavirus crisis finally wanes permanently.

If you are considering a move to Portugal, BRINT Portugal has people on the ground in Portugal who can help you search for vacation homes or real estate bargains available right now. Take advantage of market conditions to get the home of your dreams in Portugal at a once-in-a-lifetime price.

Americans continue to invest in Portugal

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Investment in the purchase of real estate, as part of the golden visa program, totalled 48.3 million euros in April, of which 15.4 million was for urban rehabilitation, with Americans leading the way.

According to data from the Foreigners and Borders Service (SEF), compared to March (34.6 million euros), the investment raised through the Residence Authorization for Investment (ARI) program rose 72.5%. In April, 121 golden visas were granted (in January there were 94, in February also 94 and in March 73), of which 92 were for the acquisition of real estate (43 for urban rehabilitation) and 29 through the capital transfer criterion.

Last month, 26 golden visas were awarded to the United States, 15 to China, 13 to Turkey, 11 to India and eight to Brazil. In this period, 116 residence permits were granted to reunited family members, with a total of 393 for the year.