According to the Bank of Portugal (BdP), one in five new loans was granted to foreign citizens, whether residents or non-residents in Portugal.
The share of foreign citizens (residents and non-residents) in the total stock of real estate credit increased from 6.9% in December 2022 to 8.2% in June 2024.
These figures, reflecting the analysis conducted during 2023 and the first half of 2024, show that "foreigners purchase more expensive homes at a time when there are persistent signs of overvaluation in the residential market."
According to Clara Raposo, Deputy Governor of the BdP, this growing trend is driven by an increase in the foreign population and the housing demand from non-residents.
Regarding households, this growth reveals a shift in demand patterns, particularly for primary and permanent housing by active, younger foreign citizens.
"The foreign population residing in Portugal has grown significantly, offsetting negative natural population balances and contributing to the increase in the total population, which impacts housing prices," commented the BdP.
In recent years, demand from foreigners with higher purchasing power has been boosted by measures such as the Golden Visa program and the Non-Habitual Residents regime.
The average price of a home purchased by a non-resident buyer (€345,000) remained higher than the average price paid by residents (€198,000).
Among non-residents, there are also differences in average acquisition values: buyers with tax residence in the European Union paid an average of €280,000, while those from other countries spent €408,000.