Looking for a Property in Portugal?
Ask the experts and there’ll tell you the same – now really is the time to consider investing in Portuguese real estate. If you’ve been giving thought to buying into this incredible country, you’re certainly not alone. On a global basis, investors and movers alike are showing greater interest in the Portuguese real estate market than at any time in recent history. Whether looking to relocate permanently, invest in a holiday home or secure yourself a lucrative letting opportunity, Portugal as a whole is bursting with potential.
Economic Growth
Since Portugal’s property market began its recovery in 2014, slow but steady economic growth has been the order of the day. In November 2017, average property values were up an impressive 5% compared to the same month one year earlier. According to the Global Property Guide, average prices nationwide hit a new high of $1,373 per square metre, while prices in Lisbon hit $1,664 per square metre – also up 5% year on year.
A combination of consumer confidence and economic growth is having a knock-on effect on the Portuguese real estate market. Further enhanced by the ongoing popularity of Portugal as an international tourist destination. Throw the country’s enviable climate and welcoming people into the mix and the result is a largely irresistible investment opportunity for buyers worldwide.
The Appeal of Portugal
For many investors, the single most appealing characteristic of Portugal is its general way of life. English is widely spoken across the country, the weather remains mild throughout the entire year, the employment market is as strong as it has ever been and the beauty of Portugal is no less than breath taking. Boasting a beach culture that’s taken more than a little seriously, it’s little wonder Portugal is often referred to as the “California of Europe”.
Heavy EU investment has resulted in the intensive development and enhancement of the country’s travel and tourism infrastructure. The government has made it abundantly clear that foreign investment in Portugal is both welcome and encouraged. Healthcare standards are among the highest in Europe, the cities of Porto and Lisbon are home to countless incredible schools and colleges, three major airports connect Portugal with the rest of the world and the general cost of living across the entire country is comparatively low.
In no uncertain terms therefore, an exceptionally appealing investment opportunity for anyone considering buying into the EU.
Why Invest in Portugal?
The list of reasons why Portugal represents an outstanding investment opportunity is largely endless. Whatever your budget, objectives and personal preferences, you’re guaranteed to be spoilt for choice. Affordable Cable Tray Fire Stopping Barriers are available here that complements your construction so beautifully.
Nevertheless, there are six particular points of appeal that stand out in the eyes of most investors, which are as follows:
1) Beach, city and countryside
Wherever you head in Portugal, you’re never far from beautiful beaches, breathtaking countryside and cosmopolitan city centres. To say that Portugal brings together the best of all worlds could be considered cliché, but it’s nonetheless as true as it gets. While the Algarve tends to attract the vast majority of interest from international investors, there are dozens of incredible towns, cities and villages to consider.
The areas around Castelo Branco, Santarém and Leiria are simply irresistible for those on the lookout for an idyllic countryside property, while the towns of Olhão and Tavira on the eastern Algarve warrant full consideration. The further afield you search from the most obvious tourist hotspots, the more dramatically prices begin to plummet.
2) Dynamic prices
Speaking of which, the Portuguese property market is also incredibly dynamic in terms of pricing and property availability. Even in the Algarve, it’s perfectly possible to pick up an attractive apartment by the beach for considerably less than €100,000. At the same time, you could also easily blow eight figures on a luxurious villa or mansion in a gated community. From city centre apartments to exclusive Troia property for sale, it’s a genuinely impressive investment landscape. In any case, there are options available to suit all budgets.
Not only this, but it’s worth bearing in mind just how competitive mortgage rates are in Portugal at the moment. If you’re able to pull together a deposit of 30% – the usual requirement for international investors – you could be looking at a variable 3% interest rate. Portugal is currently working hard to attract national and international investors alike with record-low mortgage rates.
3) World-class golf courses
Anyone with even a slight interest in golf will be in their element pretty much anywhere in Portugal. Recent decades have seen the country become one of the most famous and prestigious international golf destinations, boasting more than 40 incredible courses and seven championship courses within the ‘Golden Triangle’ alone.
Portugal’s most outstanding golf courses have spawned an enormous and highly lucrative golfing community, incorporating five-star hotels, luxurious restaurants, all-inclusive luxury travel services and so on. Positioned within easy reach of the country’s three major airports, golfers from all over the world enjoy convenient access to the country’s most prestigious courses. The golfing scene alone being a huge driver of interest among property investors worldwide.
4) Robust holiday lettings market
Tourism remains one of the biggest economic drivers in Portugal as a whole. In 2017, and all-time record 12.7 million national tourists descended on Portugal – an increase of almost 12% from the previous year. More people than ever before are setting their sights on Portugal for holidays throughout the year, which in turn means consistent demand for quality accommodation.
One of the most appealing things about the holiday lettings market in Portugal is the fact that it remains robust and reliable throughout the year. Even in the depths of winter, the weather isn’t nearly as severe as would be the norm in more northerly European regions. So while letting out properties at consistently high prices throughout the spring and summer is a breeze, it can also be surprisingly easy to keep quality properties occupied for the entire year.
Of course, rates and potential yields vary significantly from one property-type and region to the next. Nevertheless, it’s rare to come across a vacant property in any of Portugal’s most desirable tourist destinations throughout all four seasons.
5) Tax incentives
As previously touched upon, the Portuguese Government is currently going to extreme lengths to encourage International Investors to buy into the country. The recently introduced Non-Habitual Residence (NHR) regime making Portugal one of the most appealing and tax-friendly destinations for anyone interested in prime real estate.
Officially introduced in 2009, the scheme created by the Portuguese Government permits those who qualify to enjoy pretty much every source of foreign income tax-free for the first 10 years. This means that any pensions, salary payments or general income that comes from other countries is exempt from taxation for the first decade.
There’s also a scheme that enables those who spend €500,000 or more on a property to immediately and automatically qualify for residency. Known as the Golden Visa scheme, the programme has become increasingly popular among those looking to safeguard their right to move freely between European countries long-term.
6) Lower living costs
Despite being famed for serving up one of the most luxurious lifestyles on the face of the earth, Portugal is also a surprisingly affordable country. In fact, the 2018 Holiday Costs Barometer by Post Office Travel Money ranked Portugal is the second cheapest major holiday destination in the whole of Europe. Particularly when setting your sights outside the most cosmopolitan areas of Lisbon, general living costs are exponentially lower than those of most other European countries. In fact, the average cost of living in Portugal is somewhere in the region of 30% lower than that of Great Britain.
The comparatively low living costs in Portugal represent an enormous point of appeal for both movers and investors looking to generate profit through short and long-term lettings alike. Coupled with competitive mortgage rates and extraordinary tax incentives, a move to Portugal could turn out to be a surprisingly profitable move.
Now or Never?
Of course, these kinds of property booms cannot and will not last forever. Sooner or later, spins will hit a plateau wherein affordable investment opportunities will dry up and prices will be driven significantly higher. Even with the frantic rate at which new properties are springing up across Portugal, it’s only a matter of time before today’s golden investment opportunities are wiped from the map for good.
So, while it may not be a case of now or never, now’s certainly the time to make your move if looking to maximise value for money.