Real Estate in Portugal

Why Invest in Real Estate in Portugal

• A property like a house in the south of France but at Portuguese prices !
• Luxury real estate developments at very competitive prices
• A property equivalent to a house in Spain with in addition the quality of the landscapes and the Portuguese coasts where real estate density has been controlled by the State
• Recognized building quality
• Excellent opportunities due to the current lack of market liquidity
• Low depreciation risks in the medium and long term; Portugal did not suffer a financial bubble.
• A legislation that protects buyers and oversees the market.

At a time of crisis in Portugal, is an investment really appropriate?

• Yes, it is precisely in times of crisis that the best opportunities can be found. Indeed, prices are historically low as a result of the ongoing crisis. Taking a long-term approach, Portuguese real estate has never been more attractive. Prices have stabilized since 2002 and strongly declined in 2009, 2010 and 2011.

• Real estate prices compared to other European countries are therefore very accessible.

For example, the financial commitment required is a lot less important than for a property investment in France. In addition, a deep-rooted trend has emerged in the present economic conditions: a rise in the demand on the rental market. Because of the difficulties in financing their purchases, the Portuguese rely more and more on rented accommodations, which ensures a good rental level, both in terms of prices and the selection of candidates.

Finally, the Law on the eviction of bad paying tenants has just been updated and is now very favourable to owners, which makes rental investment safe and profitable.

ROI are good compared to some cities such as Paris or London where high square metre prices are capping the average rental returns to approximately 3%.

Lisbon can offer average returns between 5% to 10% for rental apartments for individuals.

In commercial real estate, it is not uncommon to see the return rate climb up to 12%.

• The cadastral system is well defined, and the market closely supervised.

• It is today impossible to buy a property that does not exist, or which is not declared, without prior knowledge.

• Legislation and regulations, in Portugal, on the one hand, and in the EU, on the other hand, allow you to secure your investment.