The luxury real estate market in Portugal has experienced a notable decline since the end of the Golden Visas program, according to recent data published by idealista. This trend is closely linked to a significant decrease in interest from investors to acquire high-end property in the country.
The decline of luxury real estate in Portugal following the end of Golden Visas
In the first quarters of 2024, foreign demand fell by 5.8 percentage points compared with the same period in 2023, when the decision to end golden visas was announced by the previous Socialist government as part of the More Housing initiative.
According to a press release accessed by Notícias ao Minuto, international demand fell even more sharply, reaching 6.3 percentage points at the beginning of 2024 compared with the end of 2023. This decrease is explained by the cessation of the issuance of investment residence visas and the announcement of the reform of the RNH regime from January 1, 2024.
The UK remains the main country of origin for foreign investors interested in luxury goods in Portugal, accounting for 11.9 % of international demand at the start of 2024. It is closely followed by the United States (11.2 %), Germany (10.2 %), Spain (9.2 %) and France (8.6 %).
This downward trend reflects a major change in the Portuguese landscape, with a decline in interest from foreign investors, particularly from the major European and North American markets. The end of golden visas has had a significant impact on the market, prompting players to review their strategies to attract new buyers and investors.
Against this backdrop, it is crucial for real estate professionals implement innovative initiatives and targeted marketing strategies to boost foreign investor interest in the Portuguese luxury market. Today's challenges call for rapid adaptation and an in-depth understanding of market trends, in order to maintain competitiveness and stimulate growth in the country's sector.
The end of golden visas has led to a significant decline in foreign demand for luxury goods in Portugal.
