In 2012-2017

8.7% of real estate sales in the Autonomous Region of Madeira were made to residents in foreign countries

The Regional Directorate of Statistics of Madeira (DREM) releases, for the first time, a set of indicators on real estate acquisitions by non-residents in the Autonomous Region of Madeira for the 2012-2017 period, allowing a broader understanding of the real estate transactions market. The classification of non-resident is based on the country of residence, which may not correspond to the country of nationality.

Between 2012 and 2017, there were 21,574 real estate transactions in the Autonomous Region of Madeira, of which 1,872 were acquired by foreign non-residents, corresponding to a percentage of 8.7%. Since 2015, there has been an increasing trend, with the highest share being recorded in 2017, 9.8%, i.e. 0.2 percentage points (p.p.) higher than in the previous year.

The value of the real estate transactions in the Region between 2012 and 2017 reached 1.8 billion euros, with 200.4 million euros being related to the acquisitions made by nonresident foreigners (11.1% of the total). The largest share of the value of real estate acquisitions made by non-residents was registered in 2015 (13.5%). It dropped in 2016 (10.6%), to increase again in 2017 (12.0%).

In 2017, fourteen real estates (2.9% of the total) were sold to non-residents for a unit value equal to or greater than 500,000 euros. In terms of value, the transaction of these real estates amounted to 10.7 million euros (17.7% of the overall value of real estates acquired by non-residents). The purchase by non-residents of real estates with a value of € 500,000 or above increased gradually in the Region between 2012 and 2017. It should be noted that, in this period, the granting of "Residence Permits in Portugal for Investment Activities - ARI", commonly known as Golden Visas, came into effectiveness.

The breakdown by country of residence of the buyer shows that in the 2012-2017 period, 21.6% of the value of real estate acquisitions by foreign nonresidents were made by United Kingdom residents. In second place is Venezuela, with 14.2% and in third France, with 10.0%. Still in the top-5 we have South Africa (9.2%) and Germany (8.9%).

In 2017, Germany (23.2%) and the United Kingdom (21.2%) - which are also the main tourist markets in the Region - were the leading countries.

The Autonomous Region of Madeira accounted for 2.1% of the real estate transactions in the country in 2017, in number and value. In the case of acquisitions made by non-residents that percentage rises to 2.7% and 2.2%, respectively. As already mentioned, the percentage of the value of real estate acquired by foreign non-residents, in the overall value of real estate transactions in the Autonomous Region of Madeira was 12.0%, higher than the national percentage which did not exceed 11.5%.

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