Property in Portugal continues to be a firm favourite amongst European purchasers. With an excellent climate, healthy lifestyle and low prices, Portugal is a highly sought after foreign property location.
Property purchasers and holidaymakers have been flocking to Portugal since the late 1960s and today Portuguese property still represents good value for money. While demand continues, Portugal remains a highly sought after location for new and resale properties, particularly in the popular resort areas of the Algarve.
Low cost airlines vie for services to Portugal’s three international airports, bringing increased competition and lower fares each year. A sound EU standard transport infrastructure and a solid economic climate help to make Portugal a modern arena in which to invest in property today. With capital growth currently at around 10% per annum in hotspot locations, shrewd investors are looking to Portugal to gain stable medium to long term returns on their investment, through capital appreciation as well as rental yields.
New emerging markets are now in their early stages, such as those along the Silver Coast just north of Lisbon and further north near Porto. Here prices can be as much as 30% lower than in more popular resorts further south, while potential for growth is rocketing due to improved infrastructures and a new trend amongst foreign property purchasers for rural locations away from the more traditional resorts. Meanwhile, golf resorts and related off-plan investments on the Algarve maintain their popularity amongst the golfing set looking to make the most of the warm climate and excellent facilities to be found in the region.
Portuguese politics runs on a democratic system and as full member of the EU and NATO. Property in Portugal is good value for money and of better quality build than many of its near neighbours.
Foreign purchasers are attracted to the Portuguese climate and relaxed quality of life while today more than 100,000 Portuguese properties are owned by foreigners. A rich culture, English speakers in professional institutions and a modern, safe social climate make Portugal a natural choice for many visitors to Portugal.
Portugal offers investors a number of key factors on which to base their purchase decision. In addition to a strong tourist industry with much to offer both beach and golf lovers, Portugal’s low prices and relaxed lifestyle make it an ideal location for many people seeking a perfect holiday or retirement destination.
Natural and Cultural Factors
- Over 300 days of sunshine a year and minimum temperatures of around 14 °C are a strong attraction for those seeking an outdoor lifestyle, cooled by refreshing Atlantic breezes
- Stunning natural beauty with fantastic scenery, including fantastic sandy beaches, dramatic rocky coastlines and the largest expanses of golf courses to be found in southern Europe
- English is widely spoken due to the large number of British visitors in Portugal. Most legal and financial professionals speak English to a high degree of proficiency.
- Rich cultural and historical interest, with Oriental and Moorish influences to be enjoyed in various forms throughout the country
- Friendly nature of the Portuguese people
- Easy access via direct flights from many international airports. Only 2.5 hours journey time.
Economic Factors
- Solid capital returns and rental yields of up to 10% per annum in some locations
- Low cost of living and good value for money in property prices
- Strong economy, backed by EU funding and ever increasing foreign investment
- Low cost airlines are boosting Portugal’s tourist industry and creating an increased demand for property in key locations
In summary, as a holiday or retirement location and a buy-to-let investment, Portugal ticks many of the right boxes in European property investors’ wish lists. Portugal has a solid economic structure and its proximity to the UK and the rest of Europe is a great advantage for those looking for a safe investment near “home”. With prices still lower than in many regions of France or Spain and a high standard of living, property purchasers will benefit from a well chosen investment property in Portugal.
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