China leads the way in “Golden Visa” investment in Portugal’s property market

Chinese are leading the way among non-European new residents in Portugal, whose investments have helped fuel a property boom under an advantageous “golden visa” scheme that is also creating political tension at home.

Interior ministry figures issued on 26thSeptember showed that the 6,498 non-Europeans granted residency since Portugal launched the scheme in 2012 had generated 3.97 billion euros ($4.7 billion) in investments, mainly in property.

The Chinese represented the biggest group with 3,936 residencies granted, followed by Brazilians with 581 and South Africans 259. Turks accounted for 236 and Russians 227.

The program has brought criticism from the far left Communists and Left Bloc, two small parties which support the ruling minority Socialist government.

But there has been no indication the government intends to end a lucrative scheme which has generated a steady flow of investment particularly into real estate.

Portugal’s scheme gives access to residency through a property investment of at least 500,000 euros, allowing visa-free travel through Europe’s Schengen area.

Original Story: Reuters |Axel Bugge
Photo: Gurgel
Edition: Prime Yield

474 houses are being sold daily in Portugal in 2018

Housing sales revenues in Portugal reached € 11.6 billion in the first half of the year, 30.5% more than in the same period of 2017. Totalling 86.335, the number of dwellings sold from January until June was 19.8% higher than the one recorded in the same period of 2017, resulting in a daily sales average of 474 houses in 2018.

These data, just released by APEMIP (The Portuguese Association of Housing Brokerage), show that more and more previously owned homes are being sold in Portugal, «with existing housing sales values exceeding € 9 billion, increasing 33,4% facing the same period of 2017».

According to APEMIP, in the second quarter of 2018 alone, were sold 45,619 family houses, the best value recorded ever and translating a quarterly increase of 12%.

Original Story: Expresso | Vítor Andrade
Translation and Edition: Prime Yield

Housing prices increased 11.2% until June

Housing prices in Portugal increased 11.2% in the second quarter of 2018 compared to the same period of 2017, according to the House Price Index (HPI) from the Portuguese Office of Statistics (INE).

Being 1.0 percentage point (p.p.) less than the recorded in the previous quarter, this result ended a period of five consecutive quarters in which the HPI recorded growing annual rates of change.

Price increases were more pronounced in the case of existing dwellings, with this residential property category showing a 12.6% increase, twice the one observed for new dwellings (6.3%).

Compared to the previous quarter, the HPI grew 2.3% (3.7% in the first quarter of 2018). The increase in prices was mainly due to existing dwellings, which recorded a rate of change of 2.9%, while new dwellings depicted a slight increase of 0.1%. A total of 45,619 dwellings were sold between April and June 2018, which represents an increase of 23.7% over the same period of the previous year. The value of sales was approximately 6.2 billion euros, 34.9% more than in the second quarter of 2017.

Original Story: INE
Photo: BigStock
Edition: Prime Yield