Foreign Direct Investment (FDI) transactions in real estate increased in the second quarter to €892.8 million, 30% more than in the first.
When the previous government of António Costa decided to end golden visas based on property purchase in Portugal, the data initially indicated shows that the number of transactions was falling, resulting in a slowdown in the total value of foreign direct investment (FDI) in real estate.
However, this scenario has begun to change since the AD Executive, led by Luís Montenegro, announced during the election campaign its intention to resume the golden visa program. And the latest data from the Bank of Portugal shows that transactions have regained strength and even reached one of the highest values ever, between April and June.
Specifically, FDI transactions in Portuguese real estate increased in the second quarter to 892.8 million euros, which corresponds to a 30% increase compared to the first three months of the year, according to Negócios, based on data from the Bank of Portugal, updated last week.
This is the fourth highest value since the beginning of 2008 (the historical start of records), after the value of transfers by foreign investors in real estate reached a record in the third quarter of 2023, the last full quarter until the end of access to residence permits for investment – or golden visas – through the acquisition of properties, adds the same media outlet.
The value of transfers by international investors to the real estate sector between April and June corresponds to around 30% of the total foreign direct investment registered in the same period (3.1 billion). With the new increase in FDI in real estate, the accumulated “stock” in the sector reached a new historical high, at 32.9 billion euros. The total accumulated stock of FDI in Portugal rose to 183.9 billion in the second quarter. Of this, 18% is in real estate.
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