Saturday, December 21, 2024

Foreign investors buy 800 Lisbon homes for €464 million

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This means that foreign property investment remains stable compared to the half-yearly average of €456 million and 790 properties observed in 2023, while also showing that the end of the foreign investment incentive schemes did not affect international purchase flows in Lisbon.

The data is revealed by Confidencial Imobiliário, considering housing purchases made by private buyers within the perimeter of the Lisbon Urban Rehabilitation Area, which covers 21 of the municipality’s 24 parishes (excluding Santa Clara, Lumiar and Parque das Nações).

Although foreign investment in housing has remained stable, this demand segment lost part of its market share, going from 41% of the amount in 2023 to 31% in the 1st half of 2024. In terms of number of operations, the share decreased from 33% to 28%, respectively. This is the lowest representation in five years and is due to the strong recovery in domestic investment.

French lead

The purchases were made by investors from 58 countries, led by the French, who took on 12% of transactions between foreigners (95 properties) and 15% in total (€67.8 million), dethroning the North Americans, who in 2023 emerged as the main issuing market. The French invested +16% than the 2023 half-yearly average, while the North Americans reduced investment by 11%, losing share compared to last year and adding 13% of the international amount in the semester under analysis (€62.5 million) and 12% in number of properties (92).

Brazilians appear in 3rd position, with the same 13% of capital as North Americans, after a significant acceleration compared to 2023. These buyers invested €61.4 million in housing in the 1st half of this year, doubling compared to € 27.8 million invested per semester in 2023. The British and Germans complete the top 5 of international companies with the highest volume of capital invested (shares of 7% and 5%, respectively), losing momentum compared to 2023 (drops of around 39% ). In terms of the number of operations, after the French and North Americans, the Brazilians, British and Chinese are the most active, with shares of 10%, 8% and 6%, respectively.

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