Portugal: Property sales to foreign residents fell 2.8% in Q2 YoY – INE

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Portugal: Property sales to foreign residents fell 2.8% in Q2 YoY – INE

7:09 CAT | 23 Sep 2024

File photo: Lusa

House sales to foreign residents in Portugal fell by 2.8% in the second quarter compared to the same period last year, to 2,464 homes, representing 6.6% of the total compared to 6.2% in the first quarter of this year, INE announced on Friday.

According to the Housing Price Index (IPHab) of the National Statistics Institute (INE), among buyers with a tax residence outside of Portugal, the category of European Union (EU) residents, with a total of 1,242 homes, recorded a year-on-year increase in the number of transactions of 5.8%, the first since the third quarter of 2022.

On the other hand, the category of buyers with a tax residence outside the EU recorded 1,222 transactions and a year-on-year decrease of 10.2% in the number of transactions (-11.9% in the first quarter of 2024).

Each of these two categories represents 3.3% of the total number of housing transactions in Portugal.

Between April and June this year, there were 34,661 transactions whose buyers had a tax residence in Portugal, up 11.5% year-on-year.

In relative terms, the weight of these transactions in the total decreased to 93.4% (93.8% in the previous quarter), but increased compared to the same period last year (92.5%).

A regional analysis shows that the North, with a total of 10,995 transactions, accounted for 29.6% of all housing sales in the second quarter, up 1.0 percentage points on the same period last year.

Alongside the North, the Centre and Alentejo regions, with 5,885 and 1,945 respectively, were the other regions to show increases in their respective regional shares, of 0.5 and 0.2 percentage points, in the same order.

Housing transactions located in Greater Lisbon totalled 7,031 units, 18.9% of the total, the same percentage as in the same period last year.

In the Setúbal Peninsula, 3,523 homes were sold, 9.5% of the total, a year-on-year reduction of 0.4 percentage points.

The West and Tagus Valley and the Algarve followed, with 3,475 and 2,836 transactions, respectively.

In terms of relative shares, transactions in these two regions accounted for 9.4% and 7.6%, in the same order, with the West and Tagus Valley maintaining its relative weight and the Algarve seeing a year-on-year reduction of 1.2 percentage points.

As for housing transactions in the Autonomous Region of Madeira, they totalled 836 units, 2.3% of the total (-0.1 percentage points year-on-year), while in the Azores there were 599 transactions, maintaining the relative weight of 1.6%.

In terms of value, between April and June, housing transactions in Greater Lisbon totalled €2.5 billion, 32.2% of the total, down 0.7 percentage points year-on-year.

In the North they totalled €1.9 billion, while in the Algarve they reached €912 million, corresponding to a year-on-year increase in their relative weight of 1.3 percentage points in the former case and a reduction in their relative share by the same amount (-1.3 percentage points) in the latter.

In the Setúbal Peninsula, the value of housing transactions (€752 million) corresponded to 9.5% of the total, down 0.1 percentage points on the same period last year.

The Centre saw an increase of 0.5 percentage points in its relative weight, to a total of 9.3%, corresponding to a value of €733 million, and in the West and Tagus Valley and Alentejo housing transactions totalled €508 million and €227 million respectively, corresponding to relative weights of 6.5% and 2.9%. In both cases, there were increases in the respective relative shares, of 0.3 percentage points in the West and Tagus Valley and 0.1 percentage points in the Alentejo.

In Madeira, housing transactions totalled €189 million (2.4% of the total), around double the €95 million (1.2% of the total) in the Azores.

In the second quarter, four regions showed year-on-year growth above the national average in the number and value of housing transactions: Alentejo, the North, the Centre and the Azores, with increases of between 12.4% and 14.5% in the number of transactions and between 18.0% and 26.4% in the value of transactions.

Source: Lusa