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by nuerow 1690 days ago
> It's great for Portuguese Treasury, Real Estate investors and the Hospitality Industry. But terrible for everyone else living in Portugal.

Why do you believe that? I mean, is no one working in the hospitality or constructions industry, and is no one benefiting from public spending?

> Foreign buyers have driven the housing market well above the purchasing power of locals, who still have one of the lowest salaries in Europe specially when adjusted to cost of living.

If there is foreign investment in real estate increasing supply and in the process creating jobs and tax revenue, and if there is an increase in demand for this specific market segment, isn't there a net benefit to society? And why do you assume that low-wage workers would be in the market for high-end housing in tourism centers if not for these foreign investors?

> For perspective, Portuguese minimum wage is 600 euros with a mode at around 1k per month (pre-tax).

A quick Google search points out that Portugal offers golden visas to real estate investors who spend more than €500k on a home[1]. That's hardly the same market segment being serving the demand of most citizens of western Europe. Why is this being spun as a "they're taking our jobs"-kind of propaganda?

[1] https://www.ft.com/content/36e18c72-512b-4c87-a41f-8ba2a9157...

1 comments

I might be interpreting it wrong, but I read it in the "gentrification"-like way, not in the "they're taking our jobs" way.
Indeed, the main issue is the earnings stagnation that Portuguese have experienced following post-2008. For perspective, many of the EU members that were behind the iron curtain have already surpassed Portugal in terms of PPP.

This loss in buying power is further exacerbated by the assymetry in housing costs precipitated by 'short-stay accomodation' Tourism and foreign pensioners driving up gentrification.

The golden visa argument from OP is non-sense. Despite the media controversy in the EU regarding Portugal and Cyprus golden visas, in Portugal these visas accounted for less than 17k families that actually settled in Portugal.