Tourism, Real Estate and Growth

The great impulse of tourism in the growth of the country was felt with greater incidence in the 3rd quarter of 2016. Nothing that the last years of successive international awards obtained by Portugal would not have already guessed. But the impact of tourism is not only felt in the national economy, real estate is one of the big beneficiaries.

In global terms, tourist revenues grew by 1,376 million euros (+ 10.8%) in September, compared to the same month of 2015.

There are several countries that have been gaining importance in the panorama of international real estate investment in Portugal. This week, the Secretary of State for Tourism, Ana Mendes Godinho, revealed some figures related to international tourism growth that make it possible to predict an equivalent impact on real estate investment from citizens from these countries.

Italy: a rising market

There is a great demand for Italians to buy a house in Portugal. This is a market that, at the moment, is in great demand for real estate, being an important data. Tourist revenues reveal a growth of 17.2% in the Italian market in the first nine months of the year - Ana Mendes Godinho

Italians look for houses to rent, but keep in mind the option to buy real estate, with a preference for the Lisbon region and Estoril coast. Italian actress Monica Bellucci is a good example of the famous people who choose Portugal to live: she bought an apartment in the historic Castelo district, in Lisbon.

The tax regime for non-habitual residents is an attraction factor for retired Italians, or professionals with high academic qualifications who seek Portugal in search of tax benefits, via exemptions or reductions in the IRS rates.

But the fascination of Italians for our country is not limited to fiscal advantages, the cultural proximity between Portugal and Italy with regard to architecture, gastronomy and fashion are very important factors. And the Latin origin of both languages facilitates communication.

Brazil: an unstoppable market

Brazil grew 43.8%, making "a fantastic recovery, after a difficult start to the year, with significant declines". In September, therefore, there was "a strong resumption" of the Brazilian market - Ana Mendes Godinho

After a period of retreat, Brazilians again choose Portugal as their preferred tourist destination, to live or to buy a second home. According to figures released by the APEMIP Studies Office, in the second quarter of 2016, Brazilians surpassed the Chinese in relation to the total of properties acquired in Portugal and are the 3rd market that most invests in national real estate, representing 10% of the total.

The Portuguese real estate market has thus become an escape valve for Brazilians and has benefited from the financial crisis that hit Brazil. The devaluation of the Real and the stability of the Euro are reasons for the demand for alternative markets (the real estate market fell 20% with the financial crisis of 2008), surpassing even the interest that the US real estate offer - with Miami at the head - always woke up in the sister country.

The sun, the climate, the beaches and a multitude of relationships and affinities, enthuse our brothers from overseas who are looking for a home to live in Europe. But the search for real estate is not confined to looking for a new place to live. Brazilian real estate investors are looking for all types of properties, from houses to rent, properties to rehabilitate or purchase luxury properties that can give you a residence visa in Europe, under the Golden Visa Portugal. The demand is quite diverse, and so are the destinations, with Lisbon and Porto occupying a place ofFeatured.

United States: demand increases

The Secretary of State also highlighted "the significant growth" of the US market, which grew 18.2% in September. In the accumulated result for the year, we have grown in the order of 20% in the USA, which reveals our capacity to reach new markets, largely the result of air capacity, which doubled for that destination.

Europe: our natural market

According to Ana Godinho: In the accumulated result for the year, there is an increase of 14.7% in relation to Germany, which is fantastic. We are finally managing to recover seriously in a market where in recent years we have not been able to grow and this is very important. Portugal continues to need to "gain scale" in the German market. This is a market with great appetite, namely to discover products related to nature tourism, being a market that travels throughout the year. It is a market that responds to two of our great challenges, which is the deconcentration of demand throughout the year, but also throughout the territory ".

In addition to the German market, the French market increased by 17%, the Spanish by 11.5%, the United Kingdom by 12.9%, France by 12.4% and the Dutch had an impact of 11.1% on the growth of tourist revenue.

In other words, there is growth across the traditional tourist markets, but there is a strong diversification of markets that has not been seen for some time.

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