About the real estate market trends, opportunities to invest today. Why Portugal is a great place and how can you diversify your investment portfolio.
It depends, of course, on the purpose of your investment, but here are a few examples of what could look like good investments right now:
The capital continues to be a great place to invest in real estate. It’s not as affordable as areas of the countryside of Portugal but you can find good investment return options in the capital. You can see nicely renovated properties in the city center in the price range of €200,000 to €500,000. Also, the prices for buying and renting continue to rise, which means you can flip a property in less than a year and make capital gains of 15%, or have a guaranteed yield of 5% per year.
There are great opportunities for good returns on your real estate investments. The prime areas are: Principe Real, Estrela, Santos, Alcântara, Alfama, Graça, Baixa and Rossio, Marvila, among others. While property prices are increasing, it’s still relatively affordable for Europe, especially for a capital city.
The beach coast of Lisbon. We see a consistent demand for Cascais and Estoril, especially wealthy families wanting to move. 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, and the prices are some of the best in Europe.
Houses in Cascais e Estoril with 3 to 5 bedrooms, had an average asking price of 1,5M€ back in the early days of 2020, today we can clearly see a rise of 20% for the same properties, average asking prices have grown to more than 1,8M€. Same trend for the renting market. Today is always a good day to buy in Cascais, never tomorrow ;)
We have seen a growing demand on the south side of the Lisbon bridge, in the district of Setúbal. Barreiro and Seixal, for example, have shown substantial growth in sales prices throughout the last years. In 2018 you could get a proper one-bedroom apartment for 60,000€, today you can only buy the same for 50% more.
The big developers in Portugal are already working in this region. They know that there you can get better yields and it is still cheap compared to the city center.
The hotel sector, despite the difficulties it is still going through, is one of the sectors that has aroused the most interest from investors, who anticipate a strong recovery in this sector in the next two to three years, so we hope to see many hotel transactions in 2022.
Commercial properties in general, are getting an increased demand due to the new rules of the Golden Visa for 2022. It is now still possible to buy a commercial property in the value of 500.000€ in the city of Lisbon and be eligible for the Golden Visa program.
Portugal is witnessing a growing excitement in what regards logistics, due to the e-commerce boom. There has been lot of demand for land to build new, modern warehouses and also with regard to pre-letting the warehouses that are under construction, displaying an unprecedented increase in demand. There is big funds investing on this type of property, mainly because the yields are higher, contracts longer and maintenance costs lower.
As the need for data storage is increasing due to the exponential growth of applications, social networks, IoT and automation, and the RGPD requires that this data storage be done in the country itself, operators are looking for land to build data centers. Portugal has a quite geo-strategic geographical position for the installation of data centers in reason of the underwater communications and data cables Ellalink (which connects Brazil to Portugal, in Sines) and Equiano that connects South Africa to Portugal (Sintra) and that is fully funded by Google.
Today, Your Property Advisor team is helping private clients and investment funds find the best opportunities in the real-estate market. Talk to us, so we can handpick the best properties for you according to your investment criteria.
You can contact me directly to rita@yourpropad.com
