The real estate sector in Portugal experienced a significant increase in foreign direct investment (FDI) transactions during the second quarter of 2024, despite the uncertainty caused by the previous government's decision to end the golden visa program. After a period of decline, the sector began to recover when the new government led by Luís Montenegro announced plans to reinstate the golden visa program, resulting in a 30% increase in real estate transactions.

Specifically, the value of FDI transactions in the Portuguese real estate sector reached 892.8 million euros between April and June 2024, marking the fourth-highest value since 2008. This increase followed a record of foreign investor transfers in the third quarter of 2023, which was the last quarter before the golden visa program was closed.

Foreign investment in the real estate sector accounted for about 30% of the total FDI recorded in the second quarter of 2024, which totalled 3.1 billion euros. This growth reflects the resilience of the real estate market in Portugal, even when faced with significant changes related to visa policies.

With the increase in FDI, the accumulated value of foreign investments in the Portuguese real estate sector reached a new record of 32.9 billion euros. In total, FDI in Portugal reached 183.9 billion euros in the second quarter, with the real estate sector accounting for 18% of this amount.

For more details, refer to the original full article here (Jornal de Negócios).