Where do foreigners most like to invest in Portugal?

In the first quarter of 2022, 5.9% of property transactions were carried out involving buyers with tax address outside Portugal, according to data released by Engel & Völkers in its Market Report. Around half of foreign buyers are members of the European Union and transactions with buyers resident the EU increased by 72.3%. As far as regions are concerned, the Algarve is the favourite of foreign investors. But where do foreigners most like to invest in Portugal? We have the details.

The Algarve

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• In Portimão, nine out of ten property acquisitions managed by Engel & Völkers were made by foreign buyers, mainly from countries such as Germany, the UK and Sweden.
• In Vilamoura and Quarteira, foreign buyers represented 75% of the transactions, with the French and Swedish standing out in the nationalities of the investors.
• The Carvoeiro and Porches areas attracts mainly French and Swiss buyers, while in Tavira, the demand is predominantly from the Dutch, Swiss, North Americans, Irish and French.

Lisbon

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• In Lisbon, the areas of Alcântara, Parque das Nações, Penha de França and São Vicente are predominant on the radar of foreign investors.

Porto

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• The Porto region is still unknown to the vast majority of foreign buyers. However, there is demand for some specific areas, such as Foz do Douro and the historic centre.

West

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• Portugal's western region is, on the other hand, a paradise yet to be discovered for many foreign investors in Portugal, with the main focus being on investment by national buyers. However, Óbidos registers a large percentage of British investors, which has seen a decrease thanks to Brexit.

"In 2022 there continues to be a growing interest from foreign investors in the property market in Portugal. It is the Algarve region that registers greater investment from foreign investors, usually attracted by the country's climate and the proximity and quality of the beaches on the Algarve coast. On the other hand, Porto and the west have great growth potential," said Juan-Galo Macià, president of Engel & Völkers for Spain, Portugal and Andorra, in a statement.