Will Portugal still be popular with Chinese investors in 2022?
A new study now reveals the key trends observed in the Portuguese real estate market which are attracting the most investor appetite from China and HongKong.
Portugal real estate has become increasingly popular among Chinese and Hong Kong high-net-worth-individuals (HNWIs) and investors in recent years, thanks to the country’s competitive tax system, their welcoming international investments, protective regulations with schemes such as the Golden Visa programme, and the high quality of life residents enjoy.
Arguably the hottest market in Europe, Portugal was the top destination for Chinese and Hong Kong investors in 2020, when inquiries surged 176% in the first nine months of the year (according to Juwai IQI, a privately held real estate sales and media company). Its capital city, Lisbon, ranks highest in a list of the most attractive cities to invest in, according to PricewaterhouseCoopers’ study, ‘Emerging Trends in Europe in 2019’.
Portugal has become a magnet for investors from China and HongKong. A new study now reveals the key trends observed in the Portuguese real estate market which are attracting the most investor appetite.
According to the research and quoting Alex Koch de Gooreynd, Partner, Head of Portugal Sales, Knight Frank, it is estimated that buyers from China and Hong Kong accounted for over 75% of all applications for the Golden Visa programme prior to the pandemic and Brexit.
Changes to Portugal’s Golden Visa programme will apply within the next couple of days i.e. from 1 January 2022, meaning that some parts of the country will no longer be eligible for investment under the scheme; however, the purchase of real estate for residential purposes – of at least €500,000 – will be still be eligible under the programme in the Azores, Madeira, or inland (including some areas within the Algarve & Alentejo).
The purchase and rehabilitation of real estate for residential purposes – of at least €350,000 – will only be allowed under the scheme in Azores, Madeira, or inland (including some areas within Algarve & Alentejo).
The million euro question that now remains to be answered is whether Portugal will continue to be a top investment destination for Chinese and Hong Kong buyers in 2022 despite these changes? How will the trend evolve? Will there be new opportunities and challenges, and what will they be?
According to one of UK's prominent China/HK luxury PR & Communications boutique agency 11K Consulting, the top reasons Chinese and Hong Kong buyers have for looking for real estate opportunities in Portugal include the country’s welcoming of international investment, its competitive tax system, its protective regulations through schemes such as the Golden Visa programme, its and good quality of life and safety.
The study also reveals that the most popular city in Portugal amongst Chinese and Hong Kong buyers is Lisbon due to its good transport links, high living standards and world-class amenities; prices typically range from €500,000 to €1,500,000. Porto and the Algarve closely follow as second and third most popular cities for property investment amongst Chinese and Hong Kong buyers.
Despite the upcoming changes in the Golden Visa programme, Portugal will remain a sound investment choice for Chinese and Hong Kong investors, due to competitive real estate value compared with other European countries, affordable cost of living, warm climate, and appeal as a tourism hotspot.
We at Strategic Solutions (Int) can help you with all your investment needs related to Portugal. We have direct links with Portuguese developers and as a local experts, we can provide guidance and show the best areas and properties available; after carrying out diligence on properties. Contact us today and book a Consultation.
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