The real estate market of Porto is featured in the New York Times.

The real estate market of Porto is featured in the New York Times. The paper highlights the expansion of tourism, competitive prices and tax advantages for foreign investors to buy house in northern Portugal.

17 May 2016 min de leitura

According to the journalist Alison Gregor, house prices in northern Portugal fell by 35% after the global real estate crisis of 2008, but the last three or four years, prices have remained stable, and the number of sales has been growing. André Borges, Sotheby's International Realty Porto, questioned by New York´s newspaper, also indicated that in some areas of Porto, it has occured a rise in prices, so there is a tendency to have higher prices now than a year ago, especially in downtown Porto and in the area of Foz.

The article also makes mention to the fact that Portugal is currently experiencing very high levels of tourism, which often leads to foreign home sales. Also Greg Boegner, founder of "PortugalConfidential.com site", said in the article that the Porto in particular, has lured many foreigners, including Americans, attracted by its culture and cheap lifestyle.

Foreigners who buy home in the North tend to focus on Porto. However, when looking for great properties, they often seek other parts of northern Portugal, such as vineyards and estates to convert into hotels, , says André Borges. Those looking for villas, apartments or condos in Porto usually choose Foz or the center of the city, which is in urban renewal phase.

Golden triangle

"The so-called 'Golden Triangle' in Porto, bounded by Avenue of Brazil, Avenida da Boavista and the Avenue of Marechal Gomes da Costa, is considered a luxury and attracts both Portuguese home buyers, as rich foreigners," says the Portuguese consultant.

Prices for houses in the north of Portugal, usually attract foreign buyers to spend between 3,000 and 5,000 euros per square meter. The best houses in Porto overlooking the sea can cost up to 6,000 euros per square meter.

The attractive tax benefits

Tax benefits under the "Non-Habitual Residents Tax Regyme" program is one of the factors that attract investors to the north of Portugal from countries like France and Belgium. Other buyers are from Brazil, England and Spain. "Americans are discovering Portugal also," said André Costa.

The Golden Visa have also been fueling the housing market, with the Middle East, China and some Brazilian buyers.

According to the article developed by the New York Times, there are no restrictions on foreign home buyers in Portugal. Real estate agents often recommend that those wishing to buy the house must still have about 7% for transaction fees, including stamp duty, tax transfer and notarial fees, in more 550.836 euros homes. also noting that it is not necessary to use a lawyer from working with a real estate agency. Lawyers usually charge about 1% of the purchase price of the property, although the rate is negotiable. Typically, the seller of the home pays the fee to the real estate agent, 4 to 6%.

The journalist ends the article stating that Portuguese banks offer competitive mortgages to non-residents, but usually lend only about 50-60% of the property value.

in Diário Imobiliário.pt