Dynamics of the Portugal property market in the 3rd quarter of 2022

42,223 property sale and purchase agreements were registered by the Land Registry and Cadastre from July to September 2022. This is 3,2% less compared to the second quarter and 2,8% less year‑on‑year. At the same time, the total amount of investment transactions increased by 9,6% over the year and amounted to 8,1 billion €.

Real estate in Portugal: prices and costs of getting a residence permit in Europe

€190,000 — the average residential property cost in the third quarter of 2022. This is the highest real estate price in Portugal in the last four years. For comparison, the average cost was €169,000 in 2021, €152,000 in 2020, and €146,000 in the pre‑pandemic year of 2019.

Residential property costs increased in all regions of the country: the highest growth was recorded in the Azores and Madeira: +48% and +40%, respectively. The lowest rate is in the central region of Portugal: house prices there increased by only 20%.

€65 m² was the average rental cost of a residential property in July—September 2022. This is 7,6% more than last year.

22,138 rental agreements were signed in Portugal for the first time. Rental prices rose in 23 out of 24 regions of the country. A price decrease was recorded only in the Azores.

Cascais is still the most expensive city to rent residential property in, with a rental price of €13,63 per square meter. It is followed by:

• Lisbon — €13,18 per m²;

• Oeiras — €11,79 per m²;

• Porto — €10,08 per m².

348,097 residential properties in Portugal remain available for purchase and rent. This data was provided by Pordata based on the 2021 population census. Most vacant properties are located in the following five cities:

• Lisbon — 21,749 properties;

• Porto — 9,610;

• Sintra — 6,866;

• Lula — 6,239;

• Vila Nova de Gaye — 6,093.

Becoming a Portugal resident for purchasing real estate is possible because of the state residence permit program: Golden Residence Permit Program.

Portugal residence permit by investment

To get the status, program participants choose from eight investment options, two of which are the purchase of real estate:

• new properties for €500,000 or more;

• properties for renovation for €350,000 or more.

To pay 20% less, investors can take two routes: either buy a property in a low population density region, with less than 100 people per square kilometer, or in a region where a GDP per capita is less than 75% of the national average.

In this case, the properties for restoration should cost at least €280,000, and other properties — at least €400,000.

Investors can buy residential properties in the interior areas of Portugal, or the Azores and Madeira. Commercial properties can be purchased in any region of Portugal. The property can be sold in five years in order to return the investment.

Portugal D7 visa also provides the opportunity to obtain a residence permit for buying or renting real estate in the country. Foreigners with passive income, such as investors or pensioners, can apply for this visa. After the D7 visa ends, a foreigner receives a Portugal residence permit with the right to work.

D7 Visa to Portugal

A D7 visa applicant will need to:

1. Buy or rent a property in Portugal by attaching a purchase or long‑term lease agreement to their visa application. There are no additional requirements for a contract amount or property location.

2. Confirm monthly income of €705. Or an annual income of €8,460. The minimum requirements will increase if a foreigner includes family members in the application: by €352 for a spouse, and €235 for each child older than 18.

3. Get an individual taxpayer number: it is needed to open a Portuguese bank account and to buy or rent a property.

Examples of properties in Portugal

Portugal, Albufeira

€1,400,000 — €4,500,000

Apartments and villas in a luxury resort managed by Marriott International

194 m² — 386 m²

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3

Portugal, Algarve

€1,300,000+

Villas and plots in a large-scale residential complex on the territory of the golf club

423 m²

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3

Portugal, Evora

€280,000 — €350,000

Share in a 5-star hotel complex with vineyards

Immigrant Invest is a licensed agent for government programs in the Caribbean. If you want to buy a property and get second citizenship in Saint Kitts and Nevis, consult our investment program experts.