The property market has gained significant momentum during the past year with an increase in demand for properties, seen particularly in the past 6 months. The growth of inward investment from foreigners has increased consumer confidence, and the banking industry being better positioned to offer mortgage loans, have both strongly contributed to these results.
The Portuguese government is committed to promoting the real estate sector and has created a number of initiatives to buying here. This includes legislation designed to extend long-term residency visas to non-European Union citizens willing to invest in Portugal referred to as the “Gold Visa” and a campaign to lure retirees to this wonderfully hospitable nation with generous tax breaks. Portugal, has indeed become a top destination for retired European citizens seeking tax benefits.
This trendy destination with temperate weather, fine restaurants and pristine beaches is also an internationally renowned destination for golf and water sports. It is an extremely safe country in which to live, with friendly people known for their congeniality.
Therefore, the current situation allows foreign buyers vast and diverse buying and investment opportunities whether they seek a beachside community or a vibrant city lifestyle. Top searches and sales are made in the cities of Lisbon (capital city), Estoril, Cascais, and Porto and Algarve (Southern coast).
Unlike some other European countries, the speculative “bubble” in real estate did not strongly impact the market here; though tough economic times did cause a decline in demand that then pushed home prices downward. This year, the first increase in residential prices were seen thanks to an expanding economy, growing consumer confidence and falling unemployment rates. Prices are rising particularly in Lisbon, the Algarve region, and Oporto.
The future points to a continued gentle recovery in prices, with demand growing and sales volumes strengthening on the expectations of sustained price growth. It is our view that 2016 will offer some of the best investment opportunities of the last 10 years.