Hello Buyers, with tax incentives in place, individuals aged 35 or under comprised the majority of new mortgage applications in August, accounting for 54% of the total granted.
In August, young adults up to the age of 35 represented 54% of new housing loan requests approved in Portugal. This marked the first time since the beginning of the year that the majority of loans in this sector were concentrated in this age group, revealing a growing trend towards homeownership among younger buyers.
The increase in demand among younger adults aligns with the introduction of tax benefits, including partial or full exemptions from the Municipal Tax on Property Transactions (IMT) and Stamp Duty. These new provisions apply to those purchasing their first home, offering particular encouragement to those seeking more affordable properties.
In the first six months of the year, young people accounted for an average of 41% of all housing loans granted, though this figure dropped to 30% in July before rising again in August. This recent up tick coincided with the launch of the IMT Jovem programme, an initiative designed to attract new homeowners. Several real estate consultants noted that many young people had postponed property purchases in anticipation of these benefits, which could explain the spike in August’s figures.
According to data released by the Bank of Portugal, younger individuals continued to hold a significant share of new loans in September, when they represented half of all approved loans. This rise in homeownership among young adults reflects the positive impact of government measures, which cover properties valued up to 316,772 euros with full exemptions from IMT and Stamp Duty. For properties between 316,772 and 633,453 euros, young buyers receive a partial exemption, easing the tax burden on property purchases.
As of 18 September, over three thousand young people have benefited from the IMT Jovem measure, with more than two thousand property transactions completed. These figures are promising, indicating the effectiveness of the incentive in stimulating the market for younger buyers. The State Budget for 2025 is set to revise the exemption thresholds, allowing more young people to benefit from these incentives.
This government initiative aims to improve access to housing for younger people at a time when high interest rates and rising property prices have made the process increasingly challenging. Adjustments to support measures, such as the IMT Jovem, demonstrate a response to the needs of younger buyers and a commitment to fostering financial stability within this demographic through improved access to homeownership.
IN: casa.sapo.pt
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