The buying and selling property trends in Portugal this year are much better than they have been for a long time. The real estate market in Portugal has revived over the last couple of years after a prolonged slowdown in the economy after the global financial crisis of 2008.
Now, there are very attractive returns available to those who had the foresight to invest in Portugal during the worst days of the economic recession, about 4 or 5 years ago.
Many sophisticated, high net worth, cash rich investors from China, Russia, Brazil and the Middle East entered the Portuguese market when it was at a low between 2010 and 2013 and are now sitting on substantial profits as their properties have shot up in value.
Portugal has once again re-established its status as one of the world’s most prominent overseas property destinations. Homes and apartments in areas such as the Algarve and the capital Lisbon are highly sought after.
Residential property price are zooming in Portugal, and government programs such as the Golden Visa scheme have certainly helped. The Golden Visa programme is a special scheme targeted at non-EU investors that fast tracks residency permits to those who invest in Portuguese properties worth at least €500,000.
This has already brought in over €2.5 billion in property purchases. Most of the Golden Visas issued so far have gone to Chinese citizens. Wealthy Chinese continue to be the biggest non-EU buyers of properties in Portugal.
The Portuguese government also offers tax-free residence to EU citizens, which is why there is a rush among Britons and French nationals to buy second homes in Portugal.
The Algarve has been the biggest beneficiary of this. The Algarve has largely unspoiled beaches, stunning natural scenery, a relaxed, laid back lifestyle and is considered by many to be the best alternative to Spain’s Costa del Sol. The Algarve has everything that Costa del Sol has to offer, except that the beachside apartments and villas here are a lot less expensive.
According to real estate agents in Portugal, foreigners account for 23 percent of the property transactions here, and the number is only growing.
There are also a number of Chinese developers in Portugal, who basically buy properties and renovate them, to sell them at a higher price to Golden Visa seekers, or wealthy individuals from China, Hong Kong, Malaysia, Indonesia and Singapore. There are also a number of US buyout firms and German real estate funds that are investing heavily in the Portuguese real estate market.
The real estate market in Portugal is still small and illiquid compared to Spain or the UK. It still faces uncertainties because of the weakness of the Eurozone in general and the fact that the Euro is one of the worst performing currencies in the world right now.
But there is no question that the interest in Portugal is very high as we approach 2024. The property market in Portugal has bounced back and is expected to give excellent returns in 2024 and beyond to investors.
Contact us today to buy or sell property in Portugal fast to overseas investors.