Is it the amazing climate? Is it the quality of life? Or is it the friendly and peaceful people? There are countless reasons influencing the decision to live in Algarve, Lisbon, or Oporto. At present, Portugal is in a unique position; it offers political and social stability, which is attractive to foreign investors. But the growth in foreign investment is not the only reason why the Portuguese real estate market has recovered. The INE (Portuguese National Statistics Institute) identifies that interest rates for mortgage lending have been at their lowest since 2009 and continue to fall month on month - excellent motivation for buyers. Furthermore, the national bank's net interest spreads are being successfully cut, which generally facilitate credit applications (eight national banks have spread margins of below 2%).

And then, there's the Non-Habitual Tax Residency scheme, which is based on the exemption of international juridical double taxation of foreign-source income from pensions. According to Savills, the market in the Algarve is still dominated by the British (45%), who has stunned the market with a rise in demand. The Swedish (24%), who play more golf per capita than any other Europeans, and the French (15%) are also frequently searching for their new home in Portugal, the advantage of the tax benefits offered. Lastly, the Golden Visa programme invites non-Europeans (16%) to increase in Lisbon, Oporto and the Algarve. Interestingly, Oporto has seen its property prices grow faster than Lisbon and the Algarve.

I agree with André Jordan when he says that financial incentives offered by the government in the form of Golden Visas, NHR, low bank spreads and low-interest rates increase foreign investment and reinforce the real estate industry. However, Portugal must also focus on promoting the things that make Portugal Portugal, and entice foreigners to live here: the amazing climate, the quality of life and the friendly, peaceful people...