Foreign Investment in Lisbon Real Estate

Foreign Investment in Lisbon Real Estate

Portugal real estate is on the rise in the last decade thanks to significant contributions of the country’s Golden Visa Program. The capital Lisbon understandably takes the lead in the country’s real estate market. Extremely popular among foreign investors, Lisbon displayed an amazing performance in the second half of 2019, too.

Lisbon Urban Rehabilitation Area (ARU) received €1.02 billion euros of investment in the first half of 2019. This data is calculated by Confidencial Imobiliario which creates its portfolio out of residential real estate acquisition transactions made by individuals. According to the data, around a third of the total investment (34 per cent to be exact) in the rehabilitation area of Lisbon is made by foreign investors which amounts to €343.9 million in total. This performance is 10 per cent higher when it is compared to the same period of the previous year which generated €311.8 million and 10 per cent lower when compared to the second half of 2018 which amounted to €382.5 million. However, it is natural, because the investment gained by the Portugal Golden Visa Program usually increases in the second half of every year.

A Big Leap in the Last Two Years

Lisbon real estate market’s performance was great for a while; however, the giant leap made in 2018 was highly unprecedented. In 2016, real estate market of Lisbon generated €300 million. In the consequent year, the amount has risen to €375 million which is still a big leap when examined objectively. Yet, it is not that impressive when it is compared to the numbers of 2018 which generated €694.3 million in total which means an increase around 85 per cent. Also, foreigners who invest in Lisbon real estate previously created an average of €393.2 thousand in their individual residential transactions. In 2018, this amount has risen to €453 thousand which is almost 50 per cent higher than the domestic average of the investment made in Lisbon real estate.

Biggest Interest is from France and China

The interest in Lisbon real estate market in the first half of 2019 mainly originated from France and China who were respectively responsible for 21 per cent and 14 per cent of the total investment made. Following countries are Brazil with 8 per cent, USA with 5 per cent, UK with 5 per cent and several others like, South Africa, Turkey, Italy, Sweden, Vietnam with little over 3 per cent.