The previous Portuguese administration under António Costa discontinued the golden visa program, which initially seemed to slow foreign direct investment (FDI) in real estate, as evidenced by declining transaction numbers and values. However, the trend began to reverse after Luís Montenegro’s AD Executive hinted at reinstating the program during their electoral campaign. Recent figures from the Bank of Portugal confirm a resurgence in real estate transactions, marking one of the highest investment influxes recorded between April and June.
In detail, the FDI in Portuguese real estate saw a significant upsurge in the second quarter, totaling €892.8 million—a 30% rise from the previous quarter, as reported by Negócios using data from the Bank of Portugal. This quarter ranks as the fourth highest since records began in early 2008. It follows a peak observed in the third quarter of 2023, which was the last complete quarter before the golden visa program’s cessation through property acquisition.
These transactions between April and June accounted for about 30% of the overall FDI during that period, which was €3.1 billion. The renewed increase in real estate FDI contributed to the sector’s cumulative investment reaching a new peak of €32.9 billion. Meanwhile, the total FDI accumulated in Portugal rose to €183.9 billion in the second quarter, with real estate investments constituting 18% of this figure.