REAL ESTATE PRICES EXPLODE IN PORTUGAL

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 account for one in five buyers! The French account for 30 %, while the Chinese and Brazilians attracted by the Golden Visa are the main investors.

Lisbon has become unaffordable

The time for bargains in Lisbon is over, even if prices may still seem attractive to some. The average value in the Portuguese capital is €3,000.00 per m² outside historic areas, and between €8,000.00 and €10,000.00 in luxury condominiums.

This trend in real estate prices in Portugal is linked to urban regeneration, tourist pressure, events such as Websummit and the proliferation of real estate developments.

Some sectors are still attractive, but you'll have to accept that you'll have to travel some 30 minutes away 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 undergoing a major overhaul in recent years, particularly since the end of 2017. It has just launched an 800 million euro investment program, including a second international airport. In the future, this will ensure around thirty international flights a day. As you can see, Porto's dynamic economy offers a wealth of investment opportunities. rental. 

rental investment

Porto and Lisbon attract many seasonal rental investors. 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.