According to data from idealista, luxury homes for sale in Portugal are now less sought after by foreigners. At the beginning of 2024, there was a drop in demand from foreigners for luxury homes for sale in Portugal, now representing 22.8% of total demand, the lowest level since the end of 2021.
The biggest drop in interest from foreign buyers looking to invest in luxury homes in Portugal came shortly after new gold visas stopped being admitted (on October 7, 2023). The data suggests that the end of golden visas – and the resulting legislative instability also marked by the end of the non-habitual resident regime (NHR) at the beginning of this year – will have had a downward effect on the demand for luxury homes by foreigners in Portugal.
Demand for foreigners is now 5.8 percentage points (p.p.) lower compared to the first three months of 2023 when the end of golden visas was announced by the former socialist Government within the scope of Mais Habitação;
The end of golden visas has had a special impact on Portugal’s attractiveness abroad as a destination for real estate investment and in terms of competitiveness between European countries to attract capital – although there are other countries that will also put an end to golden visas, including Spain. This is because real estate investors are sensitive to legislative changes, especially when the reduction of tax benefits is at stake.
Despite this, the quality of life that Portugal offers continues to be internationally recognized, as well as its good health and education services, gastronomy, landscapes, and climate. Perhaps this is why the drop in demand for luxury homes by foreigners was not even more significant in the country. It should be noted that despite the reductions, the international demand for luxury homes in Portugal continues to have some weight: 23 out of every 100 people looking for luxurious homes are foreigners.
As for the future, it is not known for sure whether there will be more changes in terms of golden visas, as the Government of Montenegro says it will revoke several Mais Habitação measures, but without making direct reference to this program.