REAL ESTATE PRICES SOAR IN PORTUGAL
Portugal has become the favorite destination of the French. The country attracts as much for its dynamism as for the charms of its tax system. The first consequence of this craze is the increase in the price ofreal estate.
Portugal is the preferred destination for French people wishing to relocate to another country in the European Community. The country's economic attractions are well known.
However, one economic fact remains relatively less well known: Portugal's economic dynamism. Since the crisis, Portugal has been modernizing its infrastructure in leaps and bounds, and has become a fashionable tourist destination over the past 10 years.
The country is building and renovating, and aims to become a European hub for start-ups. The country attracts young Europeans than retirees.
One in five buyers is foreign
Property prices in Portugal are exploding, rising by 17 % in 2018. This growth is benefiting all regions of Portugal, and particularly the cities of Lisbon and Porto. Between them, they account for almost two-thirds of all transactions.
Foreign investors represent one in five buyers! The French represent 30 %, the Chinese and Brazilians attracted by the Golden Visa are the main investors.
Lisbon has become unaffordable
The time of good deals in Lisbon is over, even if the prices may seem for some still attractive. The average value in the Portuguese capital is 3,000.00 € per m² outside the historical area, count between 8,000.00 and 10,000.00 € in the high standing condominiums.
This trend in property prices in Portugal is linked to urban regeneration, pressure from tourism, events such as Websummit and the proliferation of real estate developments.
Some sectors remain attractive, but you will have to accept to move away (about 30 min) from Lisbon.
Porto, the magnet of the north
Second city of the country, Porto is also attracting more and more investors . Prices in Porto are the same as in Lisbon five years ago, i.e. 20 % to 30 % lower. Porto is the city on the rise, voted "Best European Destination" in 2017 and "Best European City to Visit" in 2019.
Porto has been in the midst of a major renovation for a few years now, and more specifically since the end of 2017. It has just launched an 800 million euro investment program, including a second international airport. This will ensure thirty or so international flights a day tomorrow. You will have understood that Porto offers a real economic dynamism, which offers opportunities in investment rental.
Porto and Lisbon attract many investors in seasonal rentals. The yield, net of charges, is attractive, between 4 and 6 %, and the advantageous taxation for individuals.
However, this favourable environment may come to an end. In order to fight against the effects of eviction of the population from the city center, the municipalities have committed themselves to reducing, within a few years, the licenses allowing seasonal rentals. At least in some areas.