Investing in real estate in Portugal is an option that expats should consider. If you ask why, there are many reasons. Portugal is not just one of the top holiday destinations for expats who like to enjoy the beautiful country in the summer. Despite the financial crisis that hit the country in the early 2010s, Portugal is now a stable economy and a popular option for many foreign investors.
With the United Kingdom outside the European Union block of countries, Portugal offers many benefits to expatriates who want to take advantage of new opportunities. The Portuguese government also offers a Golden Visa scheme that can get you an EU passport in exchange for investing in the Portuguese economy. One of the Golden Visa investment options is related to the purchase of real estate in the country. In this article, we will share information about the Portuguese real estate market.
Learn more about the real estate market in Portugal
In Portugal, the construction industry was responsible for 8.1% of the country's gross domestic product in 2018, and real estate and construction activities represent 7.3% of total employment. According to research released by CaixaBank, in the last five years, the real estate market has undergone significant transformations, including a significant increase in the number of real estate transactions and a rise in house prices, which have accumulated an increase of approximately 40% since 2013.
The same report suggests that “one factor that has led to a boost has been common to most eurozone countries: the low interest rate environment with which the ECB has stabilized and stimulated the European economy in recent years”. However, it should be noted that the ECB is likely to raise interest rates to combat inflationary pressures in the coming months, as suggested by members of its governing board.
The recent increase in tourism is another factor contributing to the increased demand for housing in Portugal and is directly related to the current housing shortage. The significant increase in tourism-related activity has led to greater demand for real estate by investors.
This has, in turn, contributed to the real estate boom through the expansion of tourist accommodation and building rehabilitation. Finally, the demand for properties by non-residents, namely under the Golden Visa program implemented in 2012, has also contributed to the dynamics that have been observed in the real estate market over the last few years.
Investing in real estate in Portugal? These are the best locations
Portugal has great locations and many types of properties that you can add to your investment portfolio. The cost of living and taxes are lower compared to other EU countries. Below you can read more about four of the most sought after locations in the Portuguese property market.
Lisbon
In the middle of seven hills, this accessible city is an appealing alternative to Europe's most popular capitals. Lisbon has a dynamic nightlife, festive markets and museums where you can burn a few glasses of port, a big portion of cod and days of custard tarts.
With a population of 500,000 in the city proper and 2.8 million people in the Lisbon region, as well as a thriving mix of Portugal's rich history and vivid contemporary culture, Lisbon enchants travelers with its whitewashed limestone buildings, intimate atmospheres and laid-back charm that makes it a popular year-round destination.
Greater Lisbon is home to a plethora of other wonderful tourist destinations, including UNESCO World Heritage Site Sintra, the seaside resorts of Estoril and Cascais, world-class museums and Almada, famous for its hilltop statue of Cristo Rei. All these other wonderful tourist destinations are connected to Lisbon through reliable public transport connections.
harbor
Porto is a thriving commercial city that also has a significant cultural and historical legacy, which can be seen in the city's eclectic architecture. As a result of the city's inauguration as European Capital of Culture in 2001, a significant number of the area's old streets and historic buildings have been renovated, making it possible to explore a large number of new sites.
Qashqais
In terms of Portuguese resorts, Cascais is among the best. This charming seaside village is about 30 minutes west of Lisbon for a change of scenery from the hustle and bustle of the city.
The beaches of Cascais and surroundings are, without a doubt, among the best in the world. The city has its own beaches, known as Praia da Ribeira, Praia da Rainha and Praia da Conceição.
algarve
Many people are attracted to the Algarve for its beautiful beaches, ancient architecture, cuisine that stands out for its fresh seafood (such as cataplana), and excellent wines at reasonable prices.
If you lead an active lifestyle and are thinking of making this area your retirement home, then you can be sure that you will not be bored here. Although there are a hundred miles of coastline along the Atlantic Ocean, there are many other activities available. There are a variety of other activities that can be done including golf, tennis, boat trips, horse riding, walking and cycling.
What are the investment options of the Portuguese Golden Visa program?
It's not just golden sandy beaches, perfect weather and relaxing walks through the historic city centers that Portugal has to offer. If you are interested in making an investment in Portuguese real estate, you should probably also consider becoming a citizen of Portugal using the country's golden visa program.
Due to the withdrawal of the United Kingdom from the European Union, its citizens are now considered citizens of a third country. Consequently, they do not enjoy unrestricted freedom of movement and their rights within the EU are severely restricted. The “golden visa” offered by Portugal is the answer to your problems. You can earn the right to live and work in this stunning nation if you invest in Portuguese real estate or bonds, to name just two of the many financial vehicles at your disposal.
Our in-depth blog contains additional information about the Portuguese gold visa scheme as well as its eligibility requirements, which you can read. If you have any questions, please do not hesitate to contact us and we will do our best to provide you with the information you need.