Golden visas "promoted" a rise in house prices, study finds

Golden visas "promoted" a rise in house prices, study finds
Image credit: Global Residence Index

The Golden Visa programme may have withdrawn "access to housing for national citizens, because there has been a decrease in the number of properties available". This is one of the conclusions of the official report requested by the Prime Minister. The study also points out that the Golden Visas may have "inflated the price of property in areas of greatest pressure".

The study, which may (or may not) have served as a basis to determine the end of the Golden Visas, was prepared between January and February this year by an Interministerial Technical Working Group, involving the ministries of Foreign Affairs, Internal Administration, Housing, Justice, Economy, Culture and Presidency.

The date of the report coincides with the day the Government announced the end of the programme, on February 16, when the Executive presented the housing package. The report, as a first recommendation, points out that "there are not enough elements of information to allow a reasoned recommendation on the continuity or reorientation of the ARI".

Programme caused "difficulties in access to housing"

As the study indicates, "the pressure in demand leads to an increase in prices" and that, with housing being an "important slice of family income", the programme caused "difficulties in access to housing".

The report also questions "to what extent the NARE regime has withdrawn access to housing for nationals due to a reduction in the number of properties available on the residential market for nationals and/or because it has inflated property prices in areas of greatest pressure".

The document written by several entities states that "the inexpressive nature of the investment through other modalities of ARI allows us to conclude that the programme has not contributed to the development of high added value activities".

Despite the millionaire amounts and the fact that the programme "has been effective in boosting the construction sector and the financial system", the study shows that "there is no evidence of the fulfilment of such a wide range of objectives: the results in terms of job creation are meaningless".

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