Funchal Leads in Attracting Foreign Housebuyers
In Funchal, 45.3% of the demand for houses to buy comes from foreign citizens. That makes it the highest number in Portugal. Nationally, the overall interest of foreigners in buying houses has decreased by 1.2 percentage points. Four cities in Portugal, namely Funchal (45,3%), Ponta Delgada (40,1%), Faro (32,7%) and Viana do Castelo (31,1%), had at least three out of every ten house buyers being foreigners.
Funchal Also Has A Very High Foreign Rental Demand
In terms of international rental demand, there has been a general decline. However, Funchal, Bragança, and Viana do Castelo stand out as attracting more foreign families for rental purposes, with 37.7% of the demand originating from outside the country. These cities seem to be particularly appealing to foreigners seeking rental accommodations.
Numbers To Be Explained By High Real Estate Prices
If people are unable to afford houses, they are unable to create a demand. With a housing effort rate of 89% (number of your income that would go into financing your home), Funchal is leading the statistics nationwide. These extraordinary numbers do not reflect a lack of local demand but are a direct consequence of the real estate market that spiraled out of control like nowhere else in Europe.
Source: JM-Madeira
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