Although Portugal continues to be an attractive investment destination, foreigners have been buying fewer homes in the country, a reduction that began to be felt in the country with the end of golden visas for real estate investment and the end of the old Non-Habitual Residents regime (NHR). However, international citizens are buying increasingly more expensive homes, a trend felt especially by those living outside European borders.

According to idealista, foreigners have been buying fewer and fewer houses in our country, a trend that coincides with the end of tax incentives. In the summer of 2024, these citizens carried out 2,655 transactions, 3.1% less compared to the same period last year, moving a total of 938 million euros (+4%) reveals the most recent data from the National Statistics Institute (INE).

Houses sold to foreigners had an average cost of €353,437 in the summer, a value 7.5% higher than that recorded a year earlier. This means that, although international citizens are involved in fewer transactions, they are buying more expensive homes in the country.

In fact, the price of houses purchased by foreigners is up to 67% higher than the average value of houses purchased by citizens residing in the national territory, whose price was 212,099 euros.

There are significant differences between foreigners who buy a house in Portugal, depending on their origin. Those who live outside the borders of the European Union (EU) bought fewer houses than a year ago (8% less for 1,279 transactions), having been more affected by the end of tax incentives, particularly golden visas. Those who live in one of the 27 EU member states ended up purchasing 2% more homes, settling on a total of 1,376 transactions.

Although both bought more expensive houses than the Portuguese, there are also differences in terms of prices:

Buyers residing in other countries outside the EU purchased homes for an average price of 430,005 euros, a value 5.7% higher than a year ago;

EU-resident buyers: purchased homes for an average cost of €282,267, up 14% compared to summer 2023.

INE data thus shows that citizens outside the EU buy fewer houses, but at much higher prices, reaching double the average value purchased by Portuguese people (212,099 euros). On the other hand, European buyers purchased homes that were 33% more expensive than nationals.