In the first six months of 2023, Portugal recorded an inward foreign direct investment (FDI) of €2 billion, most of which was concentrated in real estate investments by non-residents.
In a report issued at the end of August by Banco de Portugal, the country's central bank, European investors were the largest FDI investors in Portugal with €980 million, followed by Asian investors with €513 million and US-domiciled investors with €298 million.
According to experts, these recent figures show an economy moving away from a reliance on tourism, which now ranks fourth in terms of project volumes in Portugal, behind tech, business services and renewable energy.
Real estate hotspots
We already know overseas investors are buying, but where are they looking? According to a report by idealista, the areas seeing the most interest from international buyers are Lisbon, Algarve and Porto.
By analysing loan requests, the national property platform found that Lisbon saw the most interest from overseas buyers at 18.9%. It was followed by Faro with 13.9% and Porto with 13.1%.
Non-residents also tend to spend more on properties in these three regions, with previous figures showing that overseas buyers may pay up to twice as much as their tax-resident counterparts per square metre.
If you're looking to invest in Portugal – and there are plenty of reasons why – and want to make the smartest investment possible, speak to Algarve Home Sales. The team is here to help you find your perfect property.