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Portugal Homes
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With property prices showing a persistent rise in many EU countries, governments are constantly implementing new measures to try and contain this upward trajectory, most of which are targeted at international buyers. What will happen next is still unclear, but with the housing crisis topic constantly being brought up by the representatives of many nations, a clear trend is being formed. Here’s all you have to know about how to be safe in case any new measures aimed at restricting foreign investment in EU’s real estate market come along.
The EU Housing Crisis and Its Impact on International Buyers
Throughout the 2010s, thousands of overseas investors looked at EU countries as more than just a place to spend the holidays. With the world becoming increasingly unstable, counting on the European Union’s stability as a safeguard emerged as an amazing plan. It’s no coincidence that this is when Golden Visas programmes started to become wildly popular, especially in EU countries that had the option of buying property as an eligible criterion, such as Spain and Portugal. It was the perfect opportunity to secure residency in the safest region in the world, while also investing in a profitable real estate asset.
In parallel, the same countries also experienced a huge boom in tourism, and it wasn’t long before a great deal of properties were acquired by both local and international investors to be turned into short-term rental units. Many of those were old and decrepit apartments which had to undergo major renovations. That brought new life back to buildings in historic neighbourhoods, naturally generating appreciation as well.
The issue started when property prices started increasing more rapidly than the average earnings of the local population, sparking a . However, instead of assessing the problem from all angles, governments so far have chosen to create measures that mainly affect international buyers, with no real help to the local community, which is probably the main reason why property prices keep increasing and the housing crisis isn't fading.