REAL ESTATE PRICES EXPLODE IN PORTUGAL

REAL ESTATE PRICES IN PORTUGAL EXPLODE

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 who wish to settle in another country of the European community. The economic attractions of the country are well known.

However, one economic fact remains relatively less known, it is the economic dynamism of Portugal. Since the crisis, Portugal has been modernizing its infrastructure in great strides and has become a fashionable tourist destination for the last 10 years.

The country is building and renovating and has the ambition to become a European hub for start-ups. The country attracts both young Europeans than retirees.

One in five buyers is foreign

Real estate prices in Portugal are exploding, in 2018 they grew by 17 %. This growth is benefiting all regions of Portugal and especially the cities of Lisbon and Porto. Between them, they concentrate almost two-thirds of the 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 evolution of real estate prices in Portugal is linked to urban rehabilitation, tourist pressure and events such as Websummit and the multiplication of real estate programs.

Some sectors remain attractive, but you will have to accept to move away (about 30 min) from Lisbon.

Porto the pole of attraction in the north

Second city of the country, Porto is also attracting more and more investors . Prices in Porto are those in Lisbon five years ago, 20 % to 30 % lower. Porto is the city on the rise, voted in 2017 "best European destination" or, in 2019, "best city in Europe to visit".

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. 

rental investment

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.

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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.