Golden visas revive second home markets in europe

Photo: Chris Yunker

The firm's latest report reveals that Spain and Portugal have both seen their second home markets improve, driven by demand from the visa schemes, which reward real estate investment with residency permits.

The positive assessment follows a long period of decline in Spain and Portugal, with prices in the former declining by up to a third from the market peak in 2007. The Algarve, meanwhile has also seen extreme depression in prices. While bargains are available, though, prime buyers in search of real estate worth enough to qualify for residency have focused their attention on Portugal's capital city of Lisbon, which Savills notes is in keeping with Asian preference towards urban properties rather than coastal villas.

In Spain's Balearics, Ibiza has been the biggest performer, thanks to its range of high-end entertainment and culture, with buyers typically aged between 35 and 50.

"The island is particularly popular with the British, but many Spanish will also buy second homes here," reads the report, quoted by Property Wire. "In the best spots villa prices have recovered to their pre-peak levels. In neighbouring Mallorca, where supply is greater, the market has remained suppressed, although Scandinavians have been particularly active."