The interest in purchasing and renting property in Portugal from foreign buyers continues to be strong.
According to data from idealista, the average weight of international demand for the 20 Portuguese district capitals stood at around 27 percent both at the end of 2019 and at the end of 2022. And in the rental market there was even greater demand international market in December 2022 (32 percent) than before the pandemic (24 percent), with Brazil being the main market responsible for this dynamic.
In Faro, Viana do Castelo and Bragança, one in three people looking to buy a home is of foreign origin. At the other end of the scale, Beja, Évora and Coimbra are the cities in the country that seem to attract less foreigners to buy a house, according to data from idealista.
Where are foreign buyers coming from?
Houses for sale in the 20 Portuguese district capitals are in the sights of citizens from different countries. The most active are the Brazilian, North American and French markets.
In Lisbon, foreigners represented 21 percent of the total demand for houses to buy in December 2022 (+0.9 p.p. compared to the end of 2019). Here the demand is mainly felt by North Americans, Brazilians and Spaniards;
In Porto, one in five people looking for a house to buy was of foreign origin (+0.6 p.p. compared to 2019). In the city, those looking most for more homes are citizens from Brazil, the USA and Spain.
In Faro, international demand represents 36 percent of the total (+2.5 p.p. than before the pandemic). And in the Algarve, those looking most for more houses to buy are the Germans, British and North Americans.
There are also more and more foreign citizens looking for houses to rent in Portugal. Idealista's data confirm this trend: the average international demand for the 20 district capitals went from around 24 percent in December 2019 (before the pandemic) to 32 percent at the end of 2022 (+8.2 p.p.). It should be noted that, even so, citizens residing in Portugal continue to dominate the demand for houses for rent.
The demand for houses for rent by foreigners increased in 19 of the 20 Portuguese cities analysed by idealista/news between the end of 2019 and the end of 2022, with this increase being most significant in Ponta Delgada (+19.1 p.p.), in Funchal (+19 p.p.) and in Porto (+11.6 p.p.). In the Portuguese rental market, the rise in international demand was less pronounced in Beja, Portalegre and Faro.
According to the same data for the end of 2022, it is in Funchal, Viana do Castelo and Bragança, where foreign citizens are most looking for houses to rent, accounting for 49 percent, 43 percent and 42 percent of the total demand in each city respectively. Portalegre, Évora and Beja are the cities that experienced the lowest international demand in the rental market at the end of 2022, although it represents between 20 percent and 23 percent of the total.
The demand for houses for rent is mainly dominated by the Brazilian market, which ranks first in international demand in 18 district capitals. The only exceptions are Funchal (where German citizens are the most looking for houses) and Ponta Delgada (where the interest in renting a house arises, above all, on the part of North Americans). The second place in international demand in this market is dominated by citizens from the US and Spain.
In Lisbon, the demand for houses for rent by foreign citizens represented 29 percent of the total in December 2022 (+10.3 p.p. compared to the end of 2019). Those who are most interested in renting a house in the Portuguese capital are Brazilians, followed by North Americans and Spaniards.
In Porto, one in three people looking for a house to rent is a foreign national (+11.6 p.p. compared to 2019). In the unbeaten city, Brazilians, North Americans and Spaniards are the ones most looking for houses in the rental market.
In Faro, international demand weighs 38 percent of the total (+3.2 p.p. than before the pandemic). Those looking for more houses to rent in the capital of the Algarve are Brazilians, Spaniards and North Americans.