Portugal’s investor visa is having some unintended consequences

Too much foreign investment in real estate is causing problems amid the country's recovery

TRD New York TRD WEEKEND EDITION /
May.May 26, 2018 01:03 PM

(Credit: Max Pixel, Pixabay)

Portugal’s reputation as a vacation spot and a deal for real estate investors has been steadily growing, but the dark side to its successful strategy is chaffing on locals.

Evictions of long-time residents are on the rise as foreign buyers and tourists flood the country, according to the New York Times. The 2011 lift of a rent freeze liberalized the market and so, in combination with Portugal’s program to offer property investors who pour in €500,000 or more a residency visa, prices have risen by about 50 percent over three years.

“Portugal’s strategy to exit the crisis was all about attracting foreign investment, which solved a major financial problem but is also now creating new issues for our people, like this housing crisis in Lisbon,” university researcher Ana Drago told the Times.

However, Lisbon-based hotelier Luís Correia da Silva told the newspaper “people shouldn’t forget that nobody wanted to do anything to save these same neighborhoods a few years ago.”

As of 2011, before rental laws changed, of Lisbon’s nearly 323,000-unit housing stock, about 50,000 homes were vacant. Now, tourists outnumber residents by a ratio of eight to one, and about 30 hotels are supposed to come online in 2018. Last year, Portugal was listed as one of the top countries to buy real estate overseas. [NYT]Erin Hudson


Related Articles

arrow_forward_ios
HFZ Capital’s condo the XI has sold 38 of its 236 units (iStock)

HFZ’s Chelsea condo now effective, with 16% of units sold

HFZ’s Chelsea condo now effective, with 16% of units sold
Zillow's Rich Barton (iStock)

Zillow launches brokerage to boost iBuying

Zillow launches brokerage to boost iBuying
421 Broome Street (Google Maps)

Soho penthouse buy sets record despite price chop

Soho penthouse buy sets record despite price chop
Oxford Property Group CEO Adam Mahfouda and (inset) the late Bianka Yankov (Mahfouda courtesy of Propco Holdings, iStock, Linkedin)

Oxford Property Group acquires Spire, expands to nearly 800 agents

Oxford Property Group acquires Spire, expands to nearly 800 agents
Brooklyn’s Sunset Park is in the midst of a severe housing crisis and in desperate need of affordable housing. (Photo by Jim.henderson via Wikipedia)

Sunset Park faces severe affordable housing shortage: report

Sunset Park faces severe affordable housing shortage: report
209 Dean Street and 315 Adelphi Street (Google Maps)

Sprawling Brooklyn townhouses drive week’s priciest deals

Sprawling Brooklyn townhouses drive week’s priciest deals
The number of single-family homes on the market hit historic lows in July, driving prices up (iStock)

US housing supply reaches nearly 40-year low

US housing supply reaches nearly 40-year low
Gov. Andrew Cuomo with Judge Lawrence Marks and Judge Daniele Chinea (Getty, Linkedin, iStock)

Flip-flop on eviction ban extension highlights state’s chaotic response

Flip-flop on eviction ban extension highlights state’s chaotic response
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...