Immigration Drives Housing Credit Surge in Portugal

The rise in real estate credit in Portugal is closely tied to the recent surge in immigration, according to Miguel Maya, CEO of BCP, in an interview with ECO. Maya explains that the increasing number of immigrants settling in the country has created new housing demands, opening up opportunities for the banking sector. “Many immigrants are building their lives in Portugal, and housing is a key issue,” he noted.

BCP has experienced a notable uptick in real estate credit operations linked to this trend. Maya emphasized that the bank maintains rigorous lending criteria, prioritising clients who demonstrate a strong commitment to staying in Portugal. “If someone is here to settle, has a job, and is building a life, BCP should be their go-to bank,” he said, reaffirming the institution’s focus on relationship-based banking.

Rising demand from newcomers sparks housing growth and prompts policy reassessment.

On the topic of public guarantees designed to help young people access home ownership, Maya supports their role, particularly in enabling 100% financing for those lacking the typical 10% down payment. However, he argues that if regulatory constraints on full financing were lifted, such guarantees wouldn’t be necessary. “If we could finance 100% without restrictions, we wouldn’t need the guarantee at all,” he stated.

Maya also suggested reassessing the public guarantee instrument based on its actual impact. “If it turns out that the State has rarely had to contribute funds, maybe it's the rule that should be reconsidered,” he pointed out.

Despite the prevailing economic uncertainties, Maya remains optimistic about the sector’s outlook. He believes Portugal is well-positioned to face challenges due to the robustness of its financial system and the resilience shown by families and businesses.

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