According to a recent survey by the Associação da Hotelaria de Portugal (AHP), the North American market is expanding in the tourism sector in Portugal, surpassing markets such as France or Brazil.
The hotel industry expects this trend to continue, with the United States strengthening its weight as a significant market for Portugal, representing the largest share of guests and overnight stays. Spain, the United Kingdom, the United States, France, Germany, and Brazil follow in the ranking.
The survey also indicates that the United States is expected to further increase its presence in Portugal, with 40% of respondents placing it in their TOP3 of origin markets for 2023.
Hotel prices have been on an upward trend, reflecting the rise in inflation and demand growth, which is a European trend. The upward trend is expected to continue, with respondents predicting further price increases. In 2022, the average return per occupied room (ADR) reached 103.9 euros, increasing by 17.7%.
The growth of North American tourism in Portugal is also having a direct impact on real state investment, with the United States being the foreign market with the highest growth in the purchase of homes in the country.
Patrícia Barão, the head of the residential department at JLL Portugal highlights that around 40% of homes purchased by US citizens are located in Lisbon, 13% in the Algarve, and 9% in Porto, highlighting enormous growth potential in other regions. She emphasizes the need for an offer that fits in with this demand profile.
According to Barão, director of JLL, buying a house in Portugal has become an attractive option for North Americans due to the high quality of life that the country offers, where many are interested in buying a residence to live in permanently, rather than just as a vacation home. Additionally, the current trend of remote work has made it easier for people to relocate to other countries.
North Americans are not only buying houses for their own use but also investing heavily in commercial real estate in Portugal. In 2022, the US invested 1.15 billion euros in commercial real estate, which represented 33.7% of the total investment in the country. Furthermore, in the first quarter of 2023, North Americans already accounted for 67% of real estate investment in the country.
Patrícia Barão also mentioned that some American clients have sold their properties in Florida and bought houses in Cascais, Portugal, and are able to live comfortably for the rest of their lives with the difference in cost. Additionally, American schools are available in Portugal, which is a plus for those with children.
Overall, the director of JLL believes that Portugal is a great deal for North Americans looking for a high quality of life and good investment opportunities.
Jones Lang LaSalle Incorporated (JLL) is an American global commercial real estate services company, founded in the United Kingdom with offices in 80 countries.