It is now official: 2017 was the best year ever in terms of property sales, at least since 2009 when this sort of data was collected and registered for the first time.
It certainly does not come as a surprise that the Portuguese property market has seen a massive recovery since 2014, after a heavy 5 year recession period but probably hardly anyone anticipated such a fast recovery. A recovery which has become a new boom.
According to the Portuguese Association of Real Estate Agencies and Professionals (APEMIP), more than 152,000 properties were sold in 2017, representing an increase of around 20% compared to the previous year, in which 127,106 properties were sold and an increase of 15% compared to the previous record year of 2010, in which 129.950 properties were sold.
The total number of sales originated a direct tax revenue (IMT) of 851,2 million, an increase of nearly 1,5% compared to the until then strongest year of 2007.
Last year, 25% of properties were bought by foreigners, with French and Brazilians leading the list, largely influenced by the Golden Visa programme and the NHR status. According to CI, prices paid by foreigners are 40% higher than those paid by Portuguese: 338,000€ vs 244,000€ (average).
According to a survey carried out by CI and RICS, property prices are expected to increase 5% in 2018. In Lisbon, Porto and Algarve, where the demand is often higher than the suply, the Portuguese Housing Market Survey predicts an annual price increase of 6% during the next 5 years.