Why Kenyan Home Buyers Are Flocking to Portugal

Portugal has become a popular destination for Kenyan home buyers who are looking for second or third homes abroad.

According to a recent report by Business Daily, wealthy Kenyans are shifting their attention from the UK and Dubai to Portugal, as they seek to diversify their wealth and buy houses that promise higher returns while allowing them to get citizenship.

But what makes Portugal so attractive to Kenyan investors? Here are some of the main reasons:

1. Property Value Growth: 

Portugal’s property market has been booming in recent years, with prices rising by 87% in the last five years. This means that investors can expect to see a good return on their investment, as well as enjoy the benefits of owning a property in a beautiful and culturally rich country.

2. Attractive Locations: 

Portugal offers a variety of locations for home buyers, from the cosmopolitan capital of Lisbon to the sunny Algarve region, to the historic Porto city. According to a study by Idealista, Lisbon, Loulé, Albufeira, Cascais, and Porto were the five most sought-after municipalities by non-residents to buy a house in the country in the second quarter of 2022. These locations offer a high quality of life, with access to amenities, services, entertainment, and natural beauty.

3. Golden Visa Scheme: 

One of the main incentives for foreign investors to buy property in Portugal is the golden visa scheme, which grants residence permits to those who invest at least €500,000 in real estate, or €350,000 in urban rehabilitation projects. The residence permit allows the investor and their family to live, work, and travel freely within the Schengen area and also provides a path to Portuguese citizenship after five years of residence.

4. Lifestyle Factors: 

Portugal is known for its mild climate, delicious cuisine, excellent safety record, beautiful beaches, and green landscapes. It is also a country with a rich history, culture, and art, as well as friendly and hospitable people. Portugal ranks high in various global indexes, such as the Global Peace Index, the World Happiness Report, and the Quality of Life Index. These factors make Portugal an ideal place to live, work, and retire.

5. Diverse Price Ranges: 

Properties in Portugal are available at a wide range of prices, catering to different budget levels. According to Homevest, the average price per square meter of property in Portugal was €1,187 in 2022, which is lower than the average price in other European countries, such as Spain, France, or Italy. However, prices vary depending on the location, type, and condition of the property, so buyers can find options that suit their preferences and needs.

In summary, Portugal offers many advantages for Kenyan home buyers who are looking for a second or third home abroad. 

With its property value growth, attractive locations, golden visa scheme, lifestyle factors, and diverse price ranges, Portugal is a destination that is worth considering for anyone who wants to invest in overseas properties. 

How is Portugal’s property market compared to other countries?

Portugal’s property market has been performing well compared to other countries. Here are some key points:

• Affordability: Despite the increase in property prices, Portugal’s real estate remains more affordable compared to most other European countries. The average price per square meter of property in Portugal was €1,187 in 2022, which is lower than the average price in other European countries, such as Spain, France, or Italy. However, prices vary depending on the location, type, and condition of the property.
• Property Value Growth: Portugal’s property market has been booming in recent years, with prices rising by 87 per cent in the last five years. This means that investors can expect to see a good return on their investment.
• Foreign Investment: Portugal has become increasingly popular with foreign buyers looking for a second home or investment property. The average price of properties purchased by non-residents in Portugal was more than double the price of houses purchased by residents. This indicates a strong demand from foreign investors, which is a positive sign for the market.
• Golden Visa Scheme: One of the main incentives for foreign investors to buy property in Portugal is the golden visa scheme, which grants residence permits to those who invest at least €500,000 in real estate, or €350,000 in urban rehabilitation projects. This scheme has attracted a lot of foreign investment, particularly from the US and the post-Brexit UK.
• Market Resilience: Despite the global economic downturn caused by the 2008 financial crisis and the recent COVID-19 pandemic, Portugal’s property market has shown resilience. The market started to recover in 2014 and has been growing steadily since then.

In conclusion, Portugal’s property market has been performing well and offers many advantages for investors compared to other countries. 

How can I buy a house in Portugal as a foreigner?

Buying property in Portugal as a foreigner is generally straightforward and clear. Here are the steps you need to follow:

1. Decide on a Budget: Determine how much you can afford to spend on a property in Portugal. This will help you narrow down your options and focus on properties within your price range.
2. Find a Property: You can find real estate in Portugal through various channels, such as real estate agencies, online property portals, or local newspapers2. Consider factors such as location, type of property, and condition of the property when making your choice.
3. Get a Portuguese Tax Identification Number (NIF): This is necessary to buy a property or get a mortgage in Portugal1. The standard procedure for obtaining an NIF number is to visit your nearest Finanças (Portuguese tax office) and apply for it in person.
4. Engage a Solicitor: It’s advisable to engage an independent solicitor to help check contracts and make sure the property is surveyed. Once that is done, you can make an offer to the seller2.
5. Sign the Sales Contract: Once your offer is accepted, you and the seller will sign the Contrato de Promessa de Compra e Venda (sales contract) with the notary. This is usually when you pay for your deposit, which ranges from 1% – 10% of the purchase price2.
6. Pay Additional Fees and Taxes: In addition to the property cost, it is important to consider the additional fees and taxes you must pay. For instance, property tax can vary between 1% and 8%, depending on the purchase price, property location, and whether it is your first or second home in Portugal1.

Remember, the process can vary slightly depending on whether you’re an EU/EEA resident or a non-resident. It’s always a good idea to seek legal advice when buying property abroad to ensure you understand all the requirements and implications.