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The repeal of Portugal's Golden Visa Programme is projected to have a minor impact on the residential market.
Such estimates were revealed in a recent investigation by the financial services firm DBRS.
"The end of granting new golden visas marks the end of a programme that was created during a difficult period for the country." The judgement should have a limited impact on the residential market because it was not a key driving factor in terms of transactions, either in terms of volume or value for the country as a whole, according to the business.
According to DBRS, various elements are more significant to explain the current pattern of rising house prices in this country, including a lack of new housing, international interest, and economic recovery.
According to the data, residential property prices in Portugal have been steadily rising since the first quarter of 2013.
“Since then, house prices have more than doubled…in recent years, a clear divergence has arisen, with prices for existing properties growing faster than those of new properties,” the analysis shows.
The survey noted that Portugal has a relatively ancient housing stock, which has just begun to be rehabilitated in response to increased tourism-related inflows and a better economic situation.
The introduction of Residency by Investment Schemes in Portugal, as well as the termination of the IMF financial support package and the rising importance of tourism in the Portuguese economy, all led to the bottoming out of new construction activity in 2015.
“Nevertheless, in Portugal, the number of new, completed residential dwellings at the start of the century was approximately 90,000 per year, while data for 2022 shows that it is now significantly below that, amounting to circa 20,000 per year,” the analysis shows.
According to earlier numbers published by the country's border agency SEF, from 2012 to now, a total of 11,921 residence permits were issued via the Golden Visa programme, with the majority of them (10,874) obtained through the purchase of real estate.
The following countries' citizens profited the most from Portugal's Golden Visa Programme:
China (5,304)
Brazil (1,198)
United States (607)
Turkey (568)
South Africa (525)
Despite making a major contribution to the country's economy, Portugal cancelled this scheme on February 16, allowing foreign nationals to obtain residency provided they made an investment in the country.
The decision was made as part of the Mais Habitacao initiative to address the housing deficit.
By fLEXI tEAM