40% of properties sold in Madeira in 2022 were sold to foreigners.
When a precedent is set for selling Portuguese nationality to foreigners, covered up with the purchase of a house for an exorbitant price, it is simply an attempt against our reality. This moment, along with the crisis with interest rates and inflation, is ironing us out.
Madeira lives on numbers that are always surrealistic, tricky, intoxicated by artifices. We already had the Offshore GDP, now we have real estate speculation and the real estate bubble. Even deputies come to municipalities to facilitate. Tell them that all statistics have tricks, unemployment, Health, the poor (even so), etc.
How are you going to stop this with people who only see excessive profit and want to get rich overnight? If, on the one hand, mass tourism is destroying the island, on the other hand, we are unable to buy a house, raise a family, reproduce, provide continuity for future generations of Madeirans. We are killing Madeirans through endless cycles of crises to produce prosperity in half a dozen.
The Madeiran only survives, hanging on to the economy of these “warlords” and a traitorous government that offers charity. Then they have the nerve to offend people as loafers, they must receive little and work excessively to madness, not wanting to recognize that there is a lack of workers because the economy is inflated and because people flee, emigrate, is that why subsidies are reduced? They don’t rule for Madeira.
No more lying! And the news says it all. If Madeira sells to organized crime, oligarchs, fugitives, state thieves, how can it be included in this logic? We are on the sidelines of this, because if we were to see who buys in the 40%, it is certain that those designated by pensioners or wealthy people of good lineage will be few.
Most are people who don’t even show up and just want the passport, law firms that provide solutions to their mafia clients. How is it that those who make their living from these expedients don’t come here to say wonders? It gives you gas so that everything stays the same. Even TV commentators, jurists, people said to be concerned with the country’s strategies when in parallel they also visit the headquarters and meetings of obscure societies.
Prices are so inflated because they work like any other barber shop, a Chinese shop, a front business to launder money, in this case real estate is another front, what they sell is nationality. Are we attracting bandits? And then the Madeiran is arrested for “trifles”? Where is the media? Ahh yes, it is the property of those interested in this.
If some think that it will be good to burst the bubble, because then the houses devalue and it is an opportunity … on the contrary, take the horse out of the rain, not even the cheapness is for the tooth of the Madeiran and the banks will not want to lose money, although some companies have already capitalized so much that they don’t even need them, they quickly need the IBC from the regional government to avoid paying taxes. The people don’t even dream of being consumed by the festivities!
There is still another detail, when you hear about Digital Nomads you see new people running around, contrary to what you might think, they don’t buy a house, not least because they need mobility without anything in their name… many of them. On the other hand, we are also unable to have workers working from home to buy bigger houses, this place is small and purchasing power is weak, interest rates are rising. The bubble in Madeira does not moderate due to the clientele it attracts, it is not linked to the consistent recovery of the economy in the post-pandemic period. If the bank withdraws from granting housing loans, it doesn’t matter, it will also not be a reason for the natural decline in demand for housing which, in turn, leads to the bursting of the housing bubble. Buyers have money, buy a house but don’t want it, the tax incentives offered by the government and nationality entice them. Will we have ghost neighborhoods in Madeira like in the madness of southern Spain or subprime in the USA? The Golden Visas cannot end because it’s like in the old days, a new building for sale in the plan pays for part of the previous development…
The bubble is detected by monitoring these relationships:
- prices and yields,
- prices and leases,
- nominal price growth,
- real price growth,
credit growth in annual terms (it matters little in the case of Madeira)
Another of the symptoms of the bubble, not directly related to real estate, is the observation of the generalized increase in prices practiced in our (or any) economy, a sign of contagion due to the assumption that there are people with money to pay, thinking that the 40% is worth more than than the 60% or the Madeirans. We’ve been feeling this for a long time. The bubble is installed and matured, so we have hysterical rulers to keep the Golden Visas, which burst when everyone is rich enough, the sales machine is much bigger than contractors and real estate, is to see the concern of the GR.
Sent by Anonymous Complaint .
Monday, May 22, 2023
All elements submitted by the author.
Translated from this link, click to read in Portuguese