The end of Golden visas will allow prices to be adjusted in certain areas, to values more in line with reality and national purchasing power, as well as allowing absorption dynamics to be more easily ensured, both by national buyers and by non-Gold Visa international investors.
The real estate consultant Imovendo has been, globally, critical in relation to Golden visas, so it comes to “applaud” the measure announced by the European Parliament, mainly for three reasons:
- This type of investment is not productive, not guaranteeing, in most cases, any type of positive externality, neither for the geographic area in which the property is located, nor for the real estate market, since it is not assumed as a driving force of the market as a whole
- This type of investment structurally represents less than 3% of the volume of real estate business in Portugal (2.8% of the volume of transactions over the last 4 quarters), and its impact in terms of speculative effect is much higher, damaging the absorption capacity of the real estate product by potential national buyers, with less purchasing power
- In a generalized context of combating corruption, money laundering and tax fraud and evasion, Golden visas are a vehicle that promotes this type of behavior, since the entities that would be responsible for reporting suspicious cases hardly report any type of suspicion, since if they did they would cease to operate in this niche market