Portugal real estate remains still an attractive investment

In a year in which the Portuguese government imposed a two percent limit on the increase in rents on real estate, French Asset Management giant Corum guarantees that it will continue to invest in the country, despite the falling house prices, a consequence of the country’s Antonio Costa led socialist government’s new legislation to curb rent increases.

The French manager hinted that it was eyeing the assets’ take over of troubled Swiss bank Credit Suisse in Portugal. Meanwhile, several media reports have indicated that in March 2023, the amount under management of Real Estate Investment Funds (FII), Special Real Estate Investment Funds (FEII) and Real Estate Asset Management Funds (FUNGEPI) in the country reached a whopping 12,339.9 million euros, 62.8 million more (0.5%) than in February.

Conversely, in a media advisory, the National Statistics Institute (INE) said the median house price of dwelling sales in Portugal in 2022 was 1 484 €/m2 and stood above the national value in the sub-regions of Algarve (2 339 €/m2), Metropolitan Area of Lisbon (2 096 €/m2), Metropolitan Area of Porto (1 609 €/m2) and the autonomous Region of Madeira (1 571 €/m2).

French Investment giant Corum aims to the Portuguese real estate market despite property slump.

In the 4th quarter of 2022, the median house price of dwelling sales in Portugal was 1 500 €/m2, representing a year-on-year growth rate of +10.7% (+13.5% in the previous quarter). Compared to the same period of the previous year, the median house price increased in 22 NUTS 3 sub-regions, with the highest increases in Alentejo Litoral (+22.6%), Região Autónoma da Madeira (+18.9%), Aveiro (+18.3%) and Médio Tejo (+17.2%), INE noted.

The four sub-regions with the highest median house prices – Algarve, Área Metropolitana de Lisboa, Região Autónoma da Madeira and Área Metropolitana do Porto – also had the highest values in both categories of the purchaser's tax residence.

In the metropolitan areas of Porto and Lisboa, the median price (€/m2) of transactions carried out by purchasers with tax residence abroad exceeded, respectively by +75.6% and +64.3%, the price of transactions by purchasers with tax residence in the national territory.

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