A new study shared by idealista reveals that although there is greater pressure from foreigners in the residential markets of Lisbon and Porto, their presence has a “limited impact” on house prices.
“The pressure from foreigners on housing prices is greater in the metropolitan areas of Lisbon and Porto, but the impact of this demand on the median value of housing appears to be globally limited”, concludes the 'policy paper' “The housing crisis in large cities – an analysis”, released by Rita Fraque Lourenço, Paulo M. M. Rodrigues and Hugo de Almeida Vilares.
This is because although foreigners buy houses that are much more expensive than the Portuguese in the different regions of the country, their representation in the total volume of housing sales in Portugal is still low (although it is rising significantly). For this reason, its impact on the median house price is more limited.
Now, extra-EU foreigners who resort to the residence permit program for real estate investment activity (ARIs, commonly known as gold visas) in addition to being a “limited universe”, “may eventually not establish residence in Portugal due to permissive legislation at a national level”. Between 2012 and 2022, around 10,600 golden visas were granted, representing a global investment of around six billion euros - 0.2% of GDP in 2022.
As for the visa commonly assigned to digital nomads, it attracted 26,525 citizens between 2018 and April 2023.
“For this phenomenon of attracting non-residents, measures of a fiscal nature contribute, such as the program for non-habitual residents, which give these citizens advantages in the way their income is taxed”, they point out. According to the AT, this program benefited 51,903 citizens between 2009 and 2020, representing a fiscal expenditure in 2021 of 1,210 million euros (about 0.56% of GDP).
What about the D2 and D7 visas? What about the EU citizens who can move here without the need for a Visa? What about Ordinance 97/2023 and visas granted to CPLP to find jobs? What about foreigners who have bought apartments here for airbnbs without moving here or the need for visas?
Seems like a lot of the sectors of impact have been left out?
By John from Lisbon on 03 Aug 2023, 07:15
The locals need to blame everyone else besides themselves for the current state of affairs...If you simply advertise as an holiday country then you will have the lowest wages in the long run...Look at Florida in the U.S. it is a tourist destination and employment is geared towards the service sector...The housing markets there are just as high as in Portugal and most can't afford to buy a home...It is also full of foreign investments...The problems lie within the government and those portuguese elite who hold on to property and sell it to anyone dumb enough to buy in market that has no price discovery...I laugh when folks don't want to blame themselves yet get a whole month of holiday in August and party on!
By Sakamoto Saurez from Lisbon on 03 Aug 2023, 10:03
I'm Portuguese and I don't necessarily blame foreigners for the current crisis, but I do blame my government's response to it. The strange commentary from Mr Sakamoto, says that the Portuguese population should actually blame themselves instead, while then adding that the culprits are the government and the elite. Which is it?
My two cents on the matter is that our government didn't create proper conditions to properly regulate the housing market. But, it's a consequence of capitalism which can be seen worldwide. The issue I doctrine is that it creates a big pit between those who have too much to afford and those who don't. There is no longer a middle class, and that is a direct consequence of the aforementioned free market, because as the term implies: everything is for grabs. There is no social or even ethical repurcursions under this system.
You don't blame the people who are willing to splurge what to them are nickels and dimes, in contrast with those who live on a budget, causing the owners to "take care" of the residents who may also pay rent on those houses. And I agree. However capitalism is a system created by the elites you so criticized to control the markets, be it real estate and others. I dare compare it with the philosophical notion that freedom is to chose within the limits of society's morals, despite what people believe it to be. Capitalism is here to stay, but it creates long term instability for immediate results.
By Miguel Melo from Lisbon on 05 Aug 2023, 03:45