Lisbon and Porto housing markets see a decline in interest from overseas buyers

Lisbon and Porto are losing ground in the Portuguese residential housing market from overseas buyers, suggesting that the market is mature and peaked.

This is according to the market research from online estate agency idealista, which has noticed that foreigners are looking elsewhere in Portugal to buy houses and at lower prices.

The latest study refers to the second quarter of the year which shows an uptick in interest and property viewings in Madeira (+42%), São Miguel (Azores) (+34%), and Viana do Castelo (+30%) were the places with the highest number of enquiries.

“However, Lisbon, Évora, Setúbal and Porto registered less than 15% of international demand. The main countries from which Internet searches of listings are France, the United Kingdom, Germany, Switzerland and Spain, with the USA standing out for being in the top 3 in several regions,” the report highlights.

The report indicates that the French lead the demand in eight districts, including Porto, Braga, Aveiro and Viana do Castelo. The British are in first place in six territories, such as Faro, Évora and Setúbal.

In Madeira, the foreigners who most look for houses are Germans (18%), British (17%) and Americans (10%). In Faro, the United Kingdom (17%), France (12%) and Germany (12%) lead the demand. In Lisbon, international demand comes mainly from the USA (14%), the United Kingdom (13%) and Spain (8%). In Porto, France (15%), the USA (12%) and Brazil (9%) stand out.