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Why you should invest in the Portuguese property market

Tuesday 2nd January 2018

Written by Mark Burns, Hopwood House

Portugal is a fantastic country that possesses a relaxed, stable vibe in relation to the property market, having never really gone through the ups and downs that the Spanish property market has. Most people buying Portuguese property over the last few years have done so purely for the lifestyle that the country offers, yet in recent times, this trend appears to be changing.
The Portuguese property market
Following a 2007 property market peak, property prices along the coast fell in the same way that property prices throughout the rest of Europe did. Portuguese hot spots saw significant price drops, yet other areas of the country didn’t suffer quite so much, mainly because Portugal has never experienced an over-supply of new developments as other countries did, such as Spain. This represents a strong and stable market in Portugal, of which is unrivalled across most of the European hotspots.
Portuguese property investors
Investors from Britain, Scandinavia and various northern European countries have always been big admirers of Portuguese property, with big investments being made for a number of years now and with recent years also seeing a surge in French investors taking a shine to Portuguese properties, particularly in the Algarve and Lisbon. The non-habitual residency scheme has been a big success for Portugal, bringing in further big investments from already keen investors in the UK and other countries. Another scheme helping to boost the Portuguese property market is the Golden Visa Scheme, of which has triggered the interest of major investors, such as those from Brazil, China and Turkey, with a particular interest in the Capital City, Lisbon.
The Algarve is a place that has captured the eye of investors across the world, and in particular the UK, with a surge in demand for both western and eastern fringes, with prices in the western Algarve similar to that of Albufeira and Vilamoura. For investors looking for property at a slightly cheaper price, Loule is very popular, with many celebrities having purchased holiday homes nearby in recent times.
Investing in Portuguese property
The last few years have seen a steady increase to property prices, with a projected average price increase of 5% per year, with the increased availability of mortgages fuelling this. Overseas investing into Portuguese property is heavily dominated by properties located in the Algarve, Lisbon and Porto, with the rest of the country completing in the market, with growing interest in Alentejo, Costa Verde and the Silver Coast.
Considered to be an abnormality, Lisbon saw prices increase by approximately 30% between 2012 and 2015, but they have indeed slowed down over the last couple of years compared to that period.
Reasons to invest in Portugal
There are a number of reasons to invest in Portugal, with some of the best reasons being:
Property prices and potential ROI are very good for the investor, meaning that the investment is likely to be extremely worthwhile financially.
Properties within Portugal are considered to be amongst some of the best in Europe, with a huge variety available at an extremely high quality.
There is a Golden Visa scheme currently in place, making it much easier for investors to make their investment, allowing them to gain Portugal residency easily, which has in turn really boosted the Portuguese economy.
Portugal is widely thought of as a beautiful country and is a popular destination for people across the globe.
For more information or to browse a range of properties for sale in Portugal, please contact Hopwood House.

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Editorial Contact Details - Conor Shilling
0845 672 6000
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