Portuguese real estate agents often think that foreigners buy luxury real estate only. However, this is wrong. Indeed, foreigners spend on average 171,000 euros in buying a property in Portugal (Idealista).
Foreigners spend on average 171,000 euros in buying a property in Portugal
Source: Idealista
Foreign buyers spend 58% more than Portuguese buyers
However it’s true that foreign buyers spend more than local buyers. While the average real estate transaction in Portugal is a home-sale for 108,000 euros, foreigners pay on average 58% more.
Who can say that 171,000 euros is luxury? It isn’t, but still we read “They want luxury properties” in the Portuguese press (DN.pt). Non-sense.
Foreigners spend 322,000 euros for a property in Lisbon
In Lisbon, foreigners spend an average 322,000 euros. Clearly, flats and houses in the Portuguese capital are significantly cheaper than in other European capitals. As Bloomberg puts, it, Lisbon is still cheap. Sure, home prices grew since 2015 from 2,000 euros to 4,000 euros per square meter (Idealista). But that is still cheap compared to Paris and London, capital cities of France and the United Kingdom, which are the top 2 foreign buyers in Portugal (FBW).
Porto is cheaper than Lisbon – foreign buyers spend 128,000 euros for a property
What budget do foreign buyers spend in Porto?
Naturally Porto is cheaper than Lisbon. So international home buyers spend on average 128,000 euros for a property there. However, the number of Airbnb listings in Porto is exploding since 2015 (Financial Times) and property prices are growing 15-20% per year, with many blaming foreign investors.
Price per square meter: 2,779 euros (Idealista).
According to data from AirDNA, the number of Airbnb listings in Porto has risen from 1,642 in August 2015, to 6,543 in August of this year.
Financial Times
Foreigners spend 214,000 euros for a property in Algarve
Naturally we need to mention the Algarve, which captures 40% of home-sales to non-resident foreign buyers. In that region, foreigners spend 214,000 euros for a property (Sapo). As average property prices are between 1,000 euros and 3,000 euros per square meter, it shows foreigners chose large-sized properties.
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