Citizen mobility has become global in recent years and Portugal is on the world map. Foreigners with high financial resources have entered the country on the basis of golden visas and the regime of non-ordinary residents, as well as under other residence permit models. Proof of this is that since 2018 and until April 10, 26,525 D7 visas have been issued, a document that is granted to people who prove the existence of their own income (pensions, investment allowances and salaries) in their country of origin . Meanwhile, on October 30 last year, an exclusive door was opened for digital nomads and some 800 telecommuters have already entered. In both cases, the nationalities with the most issued visas were North American, British and Brazilian. These data, provided by the Ministry of Foreign Affairs, prove the attractiveness of the country in an international context and thus the pressure on the housing market.
Last year, foreigners bought nearly 11,000 homes for a total of $3.6 billion, according to the National Institute of Statistics. The Algarve and Greater Lisbon were the regions that received the largest share of investment, in a year when house prices rose by 12.6% – the highest increase ever recorded. In the capital, the international market was worth 37% of the 2.4 billion euros invested in the acquisition of residential real estate, or almost 900 million euros, according to Confidencial Imobiliário. And if foreigners continue to generate significant purchasing volume, they are also very active in leasing. All this demand, in addition to the national demand, has led to an increase in rents. At the end of 2022, new contracts rose by 10.6%. Another sign of a thriving market is that rental properties are already a topic of discussion in Lisbon.
According to Eduardo Miranda, president of the Associação do Alojamento Local in Portugal (ALEP), “foreigners in the central parts of Lisbon are the main driver of demand for rental housing”. The demand is so great that “most homes that leave Local Accommodation (AL) are taken up immediately”. The market is under such pressure that the same property is the target of multiple proposals. “They’re trying to drive up the price. It’s not auctions, but the houses are very controversial,” he says. Since the pandemic, more than 3,000 homes in Lisbon have left AL and have not returned. “A large part dedicated to medium-term rentals (more than 30 days)”, in view of this mobile foreign population.
For Eduardo Miranda, these houses have “little appeal to Portuguese families, they don’t have an elevator or a parking space, they fit better into the lifestyle of foreigners”. The rent is also well beyond the budget of the vast majority of nationals. One of the main drivers of this movement is the benefits, namely taxes, for the entry and residence of foreigners in the country, such as the regime of non-ordinary residents, he says. Between 2016 and 2021 (most available data), the foreign population in Lisbon has almost doubled to more than 108,000 people in total, with an emphasis on Brazilians, French and Italians.
Digital world
These global citizens often look for a home in the digital universe, from professional rental platforms to social networks. Spotahome, which has been active in the country for four years, has a range that is very focused on apartments, most of which are furnished, but also advertises studios, rooms in shared housing and student housing. The offer is concentrated in Lisbon and Porto, although Coimbra is already working. According to Pedro Franco Caiado, director of the platform in Portugal, “prices are set by landlords and normally range between 300 and 3000 euros”. While not admitting the existence of disputes over the properties, he acknowledges “the possibility that the same house may bring together the preferences of more than one tenant.” Tenants mediated by Spotahome vary from students (40% of the platform’s customers), to digital nomads and people who want to rent houses for a long time. The average contract duration is 150 days. “There are many foreigners” who search this portal to rent a house, focusing on Spaniards, Italians, Germans, Dutch, Brazilians and North Americans.
The flatio house rental platform, of Czech origin, acknowledges that almost half (46%) of its users are digital nomads and remote workers, 36% people who want to move to Portugal and 7.5% slow travelers (slow travellers). The company advertises properties all over the country, although its main markets are Lisbon, Porto and Madeira, centers of excellence for tourist workers. According to Radim Rezek, CEO of Flatio, most of the properties are houses and apartments, but the offer also includes shared living spaces, country houses and villas, rooms and hotels, always furnished. The offer is diverse. He adds: “We have one-bedroom surf huts in Ferrel from around €191, and sea-view apartments for digital nomads in Lourinhã for less than €1,000 a month, to four-bed luxury penthouses in Lisbon for around €7,500. euros”. Radim Rezek is not aware of disputes for houses on the platform, as “our system allows potential renters to speak directly to potential landlords before reservation requests are made, so that both know what to expect”. But one thing is certain, when “an offer is online on the platform, it is booked very quickly”. Flatio tenants stay for an average of 1 to 3 months.
Sónia Santos Pereira is a journalist for Dinheiro Vivo
Source: DN
