The large number of foreigners who seek to live or invest in Portugal has helped raise real estate prices in the country. However, indicators show that the purchase of a property in Portugal is even more advantageous than the vast majority of neighbouring countries.

 

Portugal is one of the countries where real estate prices have increased the most in recent years and should maintain this trend in the coming years. According to estimates by the rating agency Moody's, the value of residential real estate will rise from 7% to 8% by 2020.

 

The Portuguese market is forecast to have had one of the highest growth rates in Europe, alongside the Netherlands and Ireland. In Portugal, real estate prices started rising since mid-2013, reaching an average growth of 16% since the beginning of 2016. In the capital Lisbon, the rise was 47% and in the city of Oporto, it was 34%.

 

According to the APEMIP – Association of Real Estate Agents of Portugal, the average price per square meter in Portugal, when considering properties above 120m2 located in large centers, is the 19th most expensive in Western Europe, still far below countries such as the United Kingdom, France, Switzerland, Italy, Spain, Germany and the Netherlands, for example. However, even with a more affordable square meter price than in these countries, Portugal has shown higher ROI (return on investment) than most of them.

 

In Lisbon, according to Idealista, a portal specialized in the real estate market, the average price per square meter is € 2,707, which is quite competitive when compared to European capitals like Madrid, Paris and London.

 

In 2019, cities like Lisbon and Porto remain in the spotlight for foreign investors because they have a high ROI (return on investment), both in relation to the growth of the property market value as well as in relation to the its rental yield, which can reach 14 % profitability per year in the case of short-term rentals for tourism. This way, the ROI (return on investment) of these Portuguese cities is above the European average and can be higher than the ones found in famous cities like Barcelona, ​​Rome, Paris and London.

 

In 2019, Portugal won the World Travel Awards for the third consecutive year as the best tourist destination in Europe. In this way, the country has attracted tourists from all over the world, and especially Brazilians and Europeans who, in addition to tourism, seek the country to live or invest in the real estate market.

 

According to the Global Peace Index, Portugal is the third most peaceful country in the world, which in itself is an important component in the choice of where to invest. The country has an efficient public health service and universities that stand out in the top international rankings, in addition to a high quality of teaching at all levels.

 

Recently, Lisbon was chosen by the Quality of Life Survey, of the British magazine Monocle, as the 12th city in the world with the best quality of life. The mild climate (300 days of sunshine a year) and the variety of options for tourism complete the "package".

 

Furthermore, there are attractive incentives offered by the Portuguese government for those who would like to invest or live in the country. The Golden Visa program is increasingly attracting a large number of non-European citizens seeking to obtain a long-term residence permit in Europe, which can become a citizenship status after 5 years of residence. The Golden Visa program is tailored to real estate investors who must invest the minimum amount of 350,000 euros in properties located in urban rehabilitation areas, or 500,000 euros in properties anywhere in Portugal. On the other hand, the Non-Resident Fiscal Regime attracts mostly Europeans. This program lasts up to ten years and offers tax exemption for income obtained abroad and reduced rates for income obtained in Portuguese soil.

 

 "Portugal offers excellent quality of life, great education, high security levels and a mild climate. Besides these, the country provides some of the most profitable opportunities for investment in the real estate market in Europe, attracting Europeans and non-Europeans alike. The real estate boom in the country is not only an excellent business in terms of financial return, but also it has served as a catalyst for ​​urban rehabilitation of the historical city centers of major Portuguese cities. " Comments Manuella Borgers, architect and co-founder of Innovva.