According to data from the National Institute of Statistics (INE), the Algarve was the region most sought after by foreigners, representing almost half of all houses sold in that period, as well as the total value of these transactions.

In the last two years, the value of housing sales exceeded €72 billion, with 89.9 percent of this value (€64.8 billion) corresponding to transactions whose buyer was tax domiciled in Portugal. The remaining 10 percent are divided: €3.8 billion from buyers in the European Union (EU) and €3.5 billion from buyers from countries outside the EU.

The report found that foreigners have greater purchasing power compared to residents. According to INE, home sales involving buyers from outside the country registered a “more expressive” average transaction value. In the “other countries” category, the average value was €374,484 more than double the average value of €149,644 euros for buyers with tax domicile in Portugal.

Regions

In an analysis by regions, the Algarve was the preferred region for foreign buyers, with a weight of 40.3 percent in number and 45.8 percent in value. The Lisbon Metropolitan Area is the second most representative location — 23.1 percent of total transactions and 35.4 percent of value.

“The contribution of buyers with tax domicile outside the national territory to the number and value of total sales shows significant differences between the different regions, with the highest weight in the Algarve (25.3 percent and 37.8 percent) and the lowest in the North (2.4 percent and 3.1 percent)”.