Property Investment in Portugal

Editorial Inspiration Lifestyle

Some condsiderations on investing in property in Portugal

Is property in Portugal a good investment? Property in Lisbon, in Porto and property in the Algarve are proving to be excellent investments with interesting incentives to attract investment. Casas do Barlavento shares some insights.

Thinking of investing in property in Portugal? Does the old adage of putting your money in bricks and mortar still make sense today? Generally, yes. However as with any investment, you need to do your research before parting with money.

The property market in Portugal has experienced positive years recently. The growth of tourism to cities such as Porto and Lisbon, as well as the always popular Algarve, has made investing in property in Portugal an attractive proposition. Add in incentives such as those for rehabilitating older properties and the return on your initial investment can be very attractive.

Casas do Barlavento, a one-stop property shop, has over 15 years experience in the property market in Portugal, specializing in the Algarve, so they know the potential of property investments as well as what to look out for. Below are some considerations about property invesment from the Casas do Barlavento team.

You may also like to check information on:
Property in Portugal
Portugal Tax
Algarve Expat Guide

The Small Story of Real Estate by Casas do Barlavento

Will this still be a safe investment in the future? Experts say, and on closer examination, it is always an asset to have money invested in something that can translate into return. Let's face it, even for small investors it is always more cost effective to have the money employed in property rather than just sitting in the bank. Investors can aim at tourism, permanent housing, or shared rent.
Investing in real estate has always been a win-win bet as it is a very flexible investment asset. To obtain good profits, it is always necessary to have good knowledge of the real estate sector as well.
The dynamics of real estate have changed since a few years ago, if ten years ago there were 100% requests for credit, today requests only reach 55% to buy a house. This is due to the arrival of foreign investment, which has led to a marked change in this sector. This dose of investment arrived in Portugal after tax incentives were given to foreigners, such as the golden visas. Only a minimum investment of 500,000 euros is required to be given a residence permit.

Another of the changes that foreigners brought to our country was urban rehabilitation. Until then, before the growth of tourism in Portugal, rehabilitating a house was more expensive than building one from scratch. Tax incentives were created for property rehabilitation to meet the demand for Alojamento Local in urban centres.

Since 2017, it has been verified that the paths of the real estate sector are also focused on new constructions. It was a trend before the crisis, and for that very reason, it slowed down. Today, new investors living in the country have buying power, and now they are looking for new buildings as permanent residences. According to Confidencial Imobiliário, this new wave has been growing, but it will still be early to see what the result will be from now on.

How to get started in real estate investment?

The first step must always be to choose a good real estate agent. If you already have an idea of the area where you want to see your money invested, it will be easier to find out which is the best professional. It is always a good indicator that the agent has a specific area of activity, a market segment or a speciality. Eventually, we can look at the most obvious such as the time of experience in the field, the results and the notoriety in the area of performance.
It is significant that you have a perception of the values practised in the assets sold in the area where you intend to invest. Even more important, will be to realize what profits this investment will bring over time. To do so, you should learn the lesson from other investments in the area. Only in this way you can perceive the gain concerning the investment and of course, if the asset valuation is above the value at the time of the acquisition, it safely means that it was, without a shadow of a doubt, a great application of your money.
While looking for the best property to invest in, pay the utmost attention to the property’s characteristics. Know if there is a need for works, and if so, understand if it is viable to proceed with the purchase. The state of the conservation, solar orientation, the structure in which the property is divided and its location, are all items you should pay maximum attention to for a conscious purchase. Verify if the area is in a positive development, so that from then on, the values of the property rise.
As all sectors, the real estate has their ups and downs as well, but it will always be a flexible and safe investment. Know the market well, predict any unforeseen event, hire a real estate professional and have all the conditions met, take the risk!

This article was originally published by Casas do Barlavento.

You may also like: