The COVID-19 pandemic is having direct effects on the property market in Portugal on various levels. In the case of demand and supply, for example, the impact observed so far has been different in the rental market compared to sales market, as well as having different consequences in different regions of the country. But how has international demand in Portugal been affected since COVID-19 arrived? Where do foreigners want to buy or rent property in Portugal during the pandemic? Let's find out with data from the recent idealista/data Residential Market Annual Report for 2020 in Portugal.
Foreign demand for Portuguese property in 2020
According to idealista 2020 data, 22% of the demand for residential property in Portugal is from international buyers and renters. While looking for property in Portugal has become more difficult for international buyers during the pandemic, this certainly hasn't put people off, with Spain, France and Brazil leading the ranking of countries looking for residential property in Portugal.
Most attractive areas for foreigners in Portugal
What are the most attractive areas to buy or rent a house in Portugal during the coronavirus pandemic for foreigners? Portugal's islands, the southernmost Algarve region, as well as regions in the north close to the Spanish border, are the areas of the country with the highest percentage of international demand.
In line with the demand per region, the districts in Portugal with the greatest amount of international demand are: Madeira (47,2%), Faro (43,2%), São Miguel (38,7%), Viana do Castelo (37,9%) and Vila Real (33,1%). On the other hand, the lowest levels of demand with international origin are found in the district of Lisbon (15.8%), Setúbal (16.3%), Porto (17.3%), Évora (18.2%) and Santarém (20.1%).
International interest in property in Portuguese cities
When it comes to international interest in property in Portuguese cities, Funchal is the district capital that registers the highest level of demand with international origin. the majority of these international clients are German, followed by British and Spanish clients.
Among the cities that stand out with the highest demand from foreigners are Viana do Castelo, Faro, Ponta Delgada and Bragança. On the contrary, Évora, Coimbra, Beja, Lisbon and Setúbal are the district capitals with the lowest demand with international origin. It is important to point out that Portuguese districts have a higher level of international demand than district capitals, showing that for international clients, the most important thing is not to live in big cities.