Between January and June 2019, foreign investment in real estate in the Lisbon Urban Rehabilitation Area (ARU) amounted to €343.9 million out of a total of 759 operations.
In terms of representativeness, international investment accounted for 34 percent of total investment by individuals the real estate market at ARU Lisbon in the first half of 2019, which amounted to €1.02 billion according to data calculated by Confidencial Imobiliário under the scope of the SIR-Urban Rehabilitation and considering residential real estate acquisition operations carried out by individuals.
Foreign investment for the first half of 2019 grew by 10 percent compared to the €311.8 million recorded in the first half of 2018, although there was a decrease of another 10 percent compared to the second half of 2018 when €382,5 million were traded.
“International investment in housing remains very robust and continues the strong momentum of last year when it reached an unprecedented level of €694.3 million. In the previous two years, this activity was between €300 and €375 million per year, i.e. trading per year, practically what is currently being traded per semester. Another indicator of the strong interest of foreigners in Lisbon is the increase in the average price per operation, which went from €393.2 thousand (1st sem. 2018) to the current €453.0 thousand, 46% above the national prices, that remained virtually unchanged at around €306 thousand” commented Ricardo Guimarães, director of Confidencial Imobiliária.
International real estate investment was led by buyers of 70 nationalities, involving countries from around the world. France (21% of international investment), China (14%), Brazil (8%), the United States (5%) and the United Kingdom (5%) were the most dynamic international home buying markets, although eight others already have investment volume over 3%, namely, South Africa, Turkey, India, Italy, Germany, Sweden, Vietnam, and Belgium.
In geographical terms, the parishes of Misericórdia and Santa Maria Maior are the main destinations for foreign investment in real estate, with investments of €55.5 million and €54.9, respectively, and a similar 16 percent share. Also worth mentioning is Santo António with a 12 % share and €42.8 million invested and Arroios with an 11% share of €38.3 million. In these four parishes, international investment has a strong representation, and in Santa Maria Maior, foreigners are even responsible for 80% of all housing investment in the semester, while in the parish of Misericórdia it is 54%. In Santo António and Arroios it amounts to, respectively, 48% and 47%.
However, there is a growing interest from foreigners in other areas of the city, with the parishes of Ajuda, Benfica, Carnide, Campolide and Areeiro registering the strongest growth in foreign real estate investment over the same period of 2018 (between 70% and 165%), even though they maintain total investment quotas below 2%. In this set of parishes, foreigners represent a maximum of 25% of all the volume invested in their parish, reaching a minimum of 6% in Benfica.
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