Portugal is an attractive option for overseas investors due to its affordable property prices and warm summer and mild winter climate. The property market in Portugal is also fairly straightforward for investors.
The property market in Portugal has recently been showing signs of growth, which could result in gains for many investors looking to sell property in the longer term, but sales are still slow. Buy to let properties can be a better option for Portugal investment property in the short term, particularly when it comes to holiday lets. It is also possible to invest in new developments, particularly along the Silver Coast and near golf resorts, but Portugal imposes tight restrictions on construction which can limit these investment opportunities. At the same time, these restrictions ensure that investment properties retain their charm by preventing construction on surrounding land.
Portugal has been attracting investors from many parts of the world, including some big investors from the US and Asia, as well as individuals hoping to make some money from their own holiday homes or future retirement properties. Many of these individual investors are Europeans, with a lot of interest coming from France and Scandinavia.
Tips for Investing in Property in Portugal
Having a good estate agent and a Portuguese-speaking lawyer can be important when you invest in Portugal property. Winkworth International can help you to identify the best investment properties and to market them effectively. Your estate agent can also advise you on the process and the legal requirements, including the rental license you will need if you buy to let.
Buying and selling or letting out property is relatively straightforward, but it can take time to locate buyers or tenants and there are various contracts and documents to organise. Patience is the key to success in the Portuguese property market, whether you are selling or letting your investment property. Having a local property manager can also be useful, particularly if you are investing from outside the country.
Why Invest in Portuguese Property?
The current property market in Portugal is relatively stable, with increasing prices in popular areas such as Lisbon, Porto, and the southern coast.Prices remain low, however, compared to other countries such as Spain and Italy, which makes investing in Portugal property a more affordable option. Buying and selling or letting out property in Portugal is also a fairly simple process, with no restrictions on overseas buyers and low transaction costs. Non-EU citizens can also benefit from a 5 year residency permit granted to investors who spend €500,000 or more on property.
The ROI for investment property in Portugal can be very high, particularly for rental apartments in cities like Lisbon and holiday lets in popular destinations such as the Algarve. Properties in Lisbon are selling for less than €6,000 per square metre, in desirable city centre locations which could cost four times as much in other European cities. The Algarve has the highest short term rents in Europe, but, while property prices are higher than in other parts of Portugal, they are still low compared to many other countries.
If you are considering investing in a property in Portugal or you would like further information on the process, please contact us. We would be pleased to answer your questions and assist you in a Portuguese property investment.
This information is for guidance purposes only and is subject to change. Winkworth recommend that prospective buyers or sellers of foreign property obtain professional legal advice.