Chinese investment in Lisbon’s real estate market experienced a significant decline last year, dropping by 46.5 percent to €54 million (US$59.3 million). Despite a surge in overall Chinese investments across Portugal, which represented nearly 70 percent of all foreign investments in the country in 2023, interest in Lisbon’s property sector has been steadily decreasing.
Chinese purchases reached a peak of €183.8 million in 2020 but have since plummeted, now comprising only 6 percent of total foreign real estate acquisitions in the capital. Other foreign buyers, including French, German, and Brazilian nationals, also exhibited reduced interest in Lisbon property in 2023. On the other hand, American and British buyers showed increased activity, though the Lisbon housing market only marginally recovered by 0.2 percent from 2022. Total foreign investment in the city amounted to €911.8 million, following a 5 percent decline in 2022.
Factors such as the discontinuation of Portugal’s “golden visas” for real estate purchases and the rising cost of housing may have played a role in dampening investor enthusiasm.
Despite the real estate dip, Chinese investment across Portugal remains robust. In 2023, it grew by almost 35 percent to €368 million (US$404 million), representing nearly 70 percent of total foreign investment in the country.
Portugal’s ambassador to China, Paulo Jorge Nascimento, expressed optimism about the future, predicting that Chinese investment in Portugal will continue to grow. He highlighted a desire to expand trade in goods alongside increased service-related investments.
Recent data from Forum Macao supports this outlook, showing that Chinese imports from Portugal—China’s third-largest trading partner among Portuguese-speaking countries—rose by 9.2 percent in the first seven months of 2024, amounting to US$1.75 billion.
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