Portugal’s Real Estate Sector Breaks Records with Over €1.1 Billion in Foreign Direct Investment



In a remarkable testament to Portugal's real estate resilience, foreign direct investment (FDI) in the sector has scaled new heights, reaching over €1.1 billion in the vibrant summer months from July to September.

In a remarkable testament to Portugal's real estate resilience, foreign direct investment (FDI) in the sector has scaled new heights, reaching over €1.1 billion in the vibrant summer months from July to September. This surge, unveiled by the recent statistics from the Bank of Portugal (BdP), not only shatters previous records but also signifies a robust 26% increase compared to the same period last year. The FDI data, freshly updated in the BdP's database, reveals a cumulative value of €3.018 billion for the first nine months of this year, setting a pinnacle in the BdP series that traces back to 2008.


Portugal's Real Estate Sector Breaks Records with Over €1.1 Billion in Foreign Direct Investment

Remarkably, this achievement comes against the backdrop of a globally challenging financial climate and a cooling real estate market in the Eurozone, making Portugal's success all the more remarkable. Even in the face of the February announcement signaling the end of residence permits through real estate investment, known as "golden visas," the sector's resurgence remains unwavering. The subsequent "More Housing" package, enacted in October, didn't sway the positive trend, with investments soaring despite initial concerns. Contrary to speculation, the data shows that potential investors haven't ruled out Portugal. FDI in real estate not only breaks records but also accounts for nearly two-thirds of the total FDI flowing into the country by September.

However, amidst the real estate boom, a broader perspective reveals a dip in overall FDI. Until September, Portugal attracted €4.6 billion in new foreign investment, marking a 12% decrease compared to the same period last year. This shift, notably lower since the onset of the pandemic in 2020, hasn't dampened the buoyancy of the real estate sector. By September's end, the total stock of FDI in Portugal reached an impressive €175.9 billion, with a substantial 90% sourced from the top 20 investing countries, totaling €157.2 billion. The BdP series, notably, considers the end investor rather than the subsidiary's location through which the investment is made.

Leading the charge among foreign final investors in the third quarter were Spain (26.8 billion), France (17.3 billion), the United Kingdom (13.3 billion), and China (12.5 billion). Surprisingly, Portugal also made a prominent appearance on this list, with €25.5 billion invested, owing to the intriguing phenomenon of "round-tripping." This entails a unique passage of investment to and from Portugal by intermediary entities residing in other territories. Among the top 20 end investors, seven countries surpassed FDI highs in this series that commenced in 2019, including the US, UK, Germany, Brazil, Angola, Switzerland, and Belgium. Notably, Angola led the pack with a remarkable 23% increase in FDI in Portugal, reaching €5.7 billion, followed by Belgium (6.7%) and Switzerland (5.3%).

Portugal's real estate sector emerges as a beacon of resilience and a magnet for international investors, setting new benchmarks and defying expectations in a global landscape rife with challenges.

In conclusion, Portugal's real estate sector has demonstrated remarkable resilience and growth, with foreign direct investment reaching unprecedented levels despite global economic challenges. The sector's ability to attract substantial FDI, particularly in the face of a cooling real estate market in the Eurozone, underscores its strength and appeal to international investors.

Portugal’s Real Estate Sector Breaks Records with Over €1.1 Billion in Foreign Direct Investment

Support Ogusyis by making a contribution – no matter how small.


Enter your amount
£
Enter your amount
£
Enter your amount
£
Yourname
Email
Phone


Dutch Home Prices to Rise 14% by End 2026; De Nederlandsche Bank Predicts No Recession

De Nederlandsche Bank forecasts a 6% increase in Dutch home prices this year, with a steady 4% rise in the next two years. No more fear of recession for the Dutch economy.

De Nederlandsche Bank forecasts a 6% increase in Dutch home prices this year, with a steady 4% rise in the next two years. No more fear of recession for the Dutch economy.

Read more

Discover Why Costa Blanca Still a Top Choice for Foreign House Buyers in Spain

Discover why ALICANTE province, particularly the Costa Blanca, remains a top destination for foreign investors looking to invest in real estate in Spain, with 44% of property transactions in 2023 carried out by non-Spaniards.

Discover why ALICANTE province, particularly the Costa Blanca, remains a top destination for foreign investors looking to invest in real estate in Spain, with 44% of property transactions in 2023 carried out by non-Spaniards.

Read more

America's Rental Market: Regions with Climbing and Falling Rents

Discover the latest data on rental market trends in America, including regions where rents are on the rise and where they are falling.

Discover the latest data on rental market trends in America, including regions where rents are on the rise and where they are falling.

Read more

Purpose-Built Rentals: The Future of Commercial Real Estate?

Discover the future of commercial real estate with purpose-built rentals as highlighted in the latest Re/Max report. Explore how landlords are shifting towards this trend for increased density and profitability.

Discover the future of commercial real estate with purpose-built rentals as highlighted in the latest Re/Max report. Explore how landlords are shifting towards this trend for increased density and profitability.

Read more

US Homeowners Experience Near-Record Highs in Home Equity Growth

Discover the latest CoreLogic report findings showing US homeowners gaining an average of $28,000 in home equity over the past year.

Discover the latest CoreLogic report findings showing US homeowners gaining an average of $28,000 in home equity over the past year.

Read more

Rare Low-Rise City Centre Homes Portfolio Hits UK Residential Real Estate Market

Explore the latest update on the UK residential real estate market with the launch of a unique portfolio of 262 single-family houses in city centres, designed for institutional ownership in the UK rental real estate market.

Explore the latest update on the UK residential real estate market with the launch of a unique portfolio of 262 single-family houses in city centres, designed for institutional ownership in the UK rental real estate market.

Read more

Rise in Landlords Investing in Semi-Commercial Real Estate

Discover why investors are flocking to semi-commercial real estate, with applications doubling in 2024. Learn more in our latest blog post.

Discover why investors are flocking to semi-commercial real estate, with applications doubling in 2024. Learn more in our latest blog post.

Read more

Nearly Half of Landlords Planning to Buy More Properties | Landbay Survey

Landbay's latest survey shows strong landlord demand, with nearly half looking to purchase more properties in the next year.

Landbay\'s latest survey shows strong landlord demand, with nearly half looking to purchase more properties in the next year.

Read more

Canada: Montreal Home Sales Increase as Prices Surge

The Montreal real estate market sees a rise in home sales, with prices on the upswing. Find out more about the latest trends in the region.

The Montreal real estate market sees a rise in home sales, with prices on the upswing. Find out more about the latest trends in the region.

Read more

Copyright © Ogusyis. All rights reserved. The Content may not be copied, distributed,  republished, uploaded, posted or transmitted in any way without the prior written consent of Ogusyis.