With everything that is happening right now, we believe that the Portuguese Real Estate market is on a very positive trajectory for the years to come.
In October 2021, Portugal became the first country in the world to reach the target of having 85% of its population fully vaccinated against Covid-19. This important milestone was possible thanks to the dedication and effort by all healthcare professionals and other entities engaged in the inclusive vaccination campaign, including the armed forces, security forces, and the municipalities. The progress in vaccination has been accompanied by a gradual increase in the activity of the Real Estate market.
The market is gaining a new dynamic, as several studies carried out by specialised firms have been revealing. Savvy investors and developers have understood this and are flocking in from all over the world, excited to invest in various sectors of the market, both in the development and in the income properties areas.
The office market has also been brought back to life, with many companies wanting to move offices to adapt to the new ways of working and to attract and retain talent, as well as foreign companies relocating services, technology centers, competence centers and even headquarters to Portugal (for example, multinationals like Google, Amazon, Adidas and BNP Paribas).
Portugal is dreaming of becoming a new European start-up paradise, with the mayor of Lisbon, Carlos Moedas, recently promising, on the main stage of the Web Summit, to found the ‘Lisbon Unicorn Factory’ as soon as next year and appealing to tech companies to "come and stay" in the Portuguese capital, which he envisions becoming “the innovation capital of the world”.
Shopping centers are also observing an increasing recovery in the number of visitors and sales. Restaurants and services still open in full time.
With regard to the residential market, it has never been truly affected and is actually showing a robustness worthy of note, not only in the country's main cities, Lisbon and Porto, but also in the hotels and second homes sector in areas such as the Algarve or in the region that goes from Tróia to Comporta and Melides. This is always an important factor when considering where to invest.
Portugal is currently one of the "star markets" not only in Europe but in the World. Everybody has been talking about it as attractive tax incentives such as the Golden Visas and the “NHR” status have led more and more foreign investors to discover Portugal’s high-quality standards of living and spectacular landscapes, to the point that many of them have actually decided not only to invest but also to move here.
Throughout this year Your Property Advisor noticed an increasing number of digital nomads, people who are currently working remotely and want to live in Portugal.
Everyone wants to live in a friendly place where the sun shines year-round, the standard of living is high, crime rate is one of the lowest (according to Vision of Humanity's 2021 Global Peace Index rankings, Portugal is the 4th most peaceful country in the world, a place in the Top 5 the country has kept for several years now), and the prices are some of the best in Europe.
By doubling the number of tourists in less than 10 years, Portugal is also the fastest growing country in Europe in terms of tourism, with tourism incomes exceeding those of other countries as France, Spain and Italy. All this enthusiasm has led to a shortage of rental properties and an increase in rental prices, much to the delight of investors.
Additionally, Portuguese legislation is protective of buyers, and while the administrative and financial procedures are similar to those practiced in other countries, the purchase costs on investments remain low – as a rule, count between 5% and 7% including taxes, notary and lawyer fees. Moreover, financial risks are limited, as exchange rates, inflation and interest rates are controlled by the European Central Bank. And the procedure for acquiring a property is rather simple and quick – four weeks can be enough between the promise and the authentic deed.
With everything that is happening right now, we believe that the Portuguese Real Estate market is on a very positive trajectory for the years to come.
If you are thinking about investing in Real Estate in Portugal talk to us now.
You can contact me directly to carolina@yourpropad.com
