The recovery of the housing sector
The housing market is recovering. The increase in homes sold, the easy access to credit, low interest rates, are signs of this evolution.
For quarters, transactions have experienced positive developments, with an increase in prices. The valuation of real estate in Portugal is already above the EU average. This is explained by higher lending by the banks that have not been lending so much money for the past 4 years.
According to the National Institute of Statistics, 24,512 homes were sold in Portugal in the third quarter. In 10 homes sold, only two are new.
In addition to the increased number of transactions, the value of homes also rose. Prices increased 2.9% in the second quarter over the same period. Growth in Portugal is more pronounced than the average of the European Union, where prices rose 2.3%. Still, it does not compare to an increase of 10.7% recorded in Ireland, where growth was more pronounced.
480 Golden Visas allowed since early 2015
Since the beginning of the year, 480 Golden Visas were allowed (a total of 1,526 in 2014). On September, the number of visas allowed reached a number of 37, two more than in August, through an investment of 21.1 million euros, according to data released by the Department of Foreigners and Borders (SEF).
According to data provided by the SEF on its website, 37 residence permits were awarded through the ARI (Residence Permit based on Investment) last month, 36 through the acquisition and ownership and 1 via the transfer of capital totaling 21,107,956 euros.
Regarding nationalities, the Chinese are still in the lead with 1996 visas granted. In September, 27 visas were granted to citizens of this country. Brazil totaled 92 ARI awarded at the end of last month, three more than in August, and the number for Russia rises 86 visas for its citizens. Last month, four visas were issued to South African citizens and an ARI to a Lebanese citizen.
What are the forecasts for the property market in the UK?
The real estate prices are rising in the UK, but experts have noticed a drop in prices in London during the last month. This trend, however, will not be maintained over the medium to long term, as a 30% price increase is expected over the next five years.
After a sustained increase during the 20th century, the rate of homeowners in the UK experienced a steady decline since 2003. The panoramic view of the property market was also marked by the contraction of real estate loans. In 2008 and 2009, the decline in commodity prices was accentuated when banks have sharply reduced mortgage assignments. Added to this are inflation and declining purchasing power, which have resulted in the slowdown of the property market.