According to the former CEO of Banko Novo, Portugal is unlikely to experience real estate bubbles in the foreseeable future. Several factors contribute to this stable real estate market:
1. Strong Labor Market and Rising Salaries: Portugal's robust labour market with a high employment rate and increasing local salaries ensures economic stability and purchasing power.
2. Thriving Tourism Industry: The booming tourism sector drives investor interest in rental housing, further bolstering the real estate market.
3. Supply Shortage: Portugal has seen limited new construction in recent years, preventing an oversupply issue that plagued Spain in 2008 before the global financial crisis.
4. Low Mortgage Debt: Most homeowners have made substantial progress in paying off their mortgages, reducing the risk of mass repossessions due to debt.
5. Foreign Demand: Portugal continues to attract foreigners seeking leisure, investment opportunities, or residency permits, maintaining a steady demand for real estate.
Changes in Residence Permits: While there might be a decrease in foreign buyers following Portugal's removal of real estate as an option in the Golden Visa program, alternative residence permits, such as those for digital nomads, still offer opportunities for international residents.
Portugal's real estate market remains a sound and stable option, with multiple factors ensuring its resilience. While some changes in the residence permit landscape may occur, the market is poised for continued growth and stability.
