New data released by overseas property portal Kyero.com has revealed record interest in Portuguese and Spanish property during 2021.
Kyero, which is home to more than 870,000 European property listings, making it the largest overseas property portal in the UK, has seen the highest ever volume of traffic to properties in both Spain and Portugal in the first three quarters of this year (January to September) compared to the same period in any year since it was founded in 2003.
In Spain, enquiries for properties are up 16%, while in next-door neighbour Portugal interest increased by 26% during Q3 2021 compared to the same time last year.
The data also showed a 10% rise in enquiries for properties in Spain compared to the same period in 2019, and a 55% growth in enquiries for properties in Portugal, proving that these increases are not solely a result of pent-up demand since lockdown last year.
Louise Dell, founder of Kyero, says hotspots in the Med like Spain and Portugal continue to draw a huge and growing level of interest from Brits in particular.
“Amidst the British winter of discontent - energy bill increases, petrol shortages, unpredictable weather and ongoing Brexit issues - more and more people are setting about making their dreams of moving to Europe a reality,” she said.
Separate data from a Kyero survey of more than 2,000 people considering moving to Europe found that 75% of people are interested in moving to the Continent for better weather, while 16% of potential buyers are looking for a cheaper cost of living from their move abroad.
“Brexit has been a major driver for many Brits buying property in Europe over the last few years, and while it has had some implications on residency, a significant proportion of European house hunters are buying holiday homes, so demand has not been negatively impacted,” Dell added.
What about residency since Brexit?
The 90-day visitor rule in place for EU countries, including Spain and Portugal, since the Brexit transition period finally ended at the start of this year, means non-residents are now only able to visit for up 90 days in any 180-day (six months) period, which makes longer stays more challenging.
However, it is still possible to apply for a non-lucrative visa, golden visa or working visa in Spain, with Brits living in Spain now needing to apply for a TIE (Tarjeta de Identidad de Extranjero, or a foreigner’s identity card).
This card acts as proof of permission to reside in Spain, with original residency papers likely to be phased out over time. Thanks to Brexit, Brits are now treated in the same way as non-EU citizens when it comes to gaining residency in Spain, meaning there has been a rise in the income threshold for those who want to retire or move to Spain permanently.
In Portugal, you can apply for a Golden Visa if you purchase a property worth more than €500,000, a D7 visa if you have an income of €1,000 per month or a D2 visa if you want to start a business. What's more, the Portuguese Non-Habitual Residency scheme also allows for most foreign income to be exempt from Portuguese taxation for ten years.
What did the European Overseas Property Market Tracker for Q3 2021 reveal?
Kyero carries out a quarterly overseas European property market tracker based on its user data. Updated every quarter, it benchmarks three key areas:
Average asking price per overseas market (Spain, France, Italy, Portugal)
Numbers of properties for sale per country
Consumer interest in each country
Its key findings in Q3 were:
Asking prices are fairly static, up slightly in Spain and France, and down slightly in Portugal and Italy
Property numbers are up 7,000 in total
Overall buyer interest is fairly static compared to last quarter