The countries of Europe on the continent’s edge is a dream of tourists, foreigners from third countries, and post-Soviet republics wishing to invest in real estate. Why exactly does it attract potential buyers? Picturesque places and ancient architectural treasures, a high standard of living, excellent service, and a health care system. These are the main reasons the state is at the top of the best. It is located in a port harbor, making importing and exporting products abroad convenient. The country’s political system and economy have been stable for many years, with unemployment decreasing every quarter. It encourages home buying among locals and foreigners alike. If desired, a wealthy person can instantly obtain a visa and residency by investment to make a purchase.
Such popular places as Porto and Madeira attract tourists from all over the world. Favorable climate, beautiful beach, and mountain landscapes make Portugal an attractive place for vacation at any time of the year. Therefore, if you buy a home, you can rent it out and earn passive income.
Current State of the Portuguese Real Estate Market
The prices have increased by about 13% for 2023. According to Vladlena Baranova (Immigrant Invest agency), long-term renting carries an annual benefit of 7% more than short-term renting. Nowadays, many cosmopolitans decide to invest in residential properties in the territory.
The number of properties is limited due to high demand and competitive prices compared to Spain and Italy. Which areas to prefer and where to move to for wealthy citizens? Madeira, the Azores, or small towns on the Algarve coast will suit lovers of privacy, peace, and quiet, while those who are used to an active life should choose Lisbon or Coimbra. The government provides many opportunities for traveling and living.
Some of the inexpensive neighborhoods and towns will suit more privacy. Prices there radically differ from the cost of real estate in the center of the republic. A one-room apartment will cost less than 800 euros. Penedono, Nisu, Gois, Belmonte, Carregal do Sal, Tondelo, Arganil, Fronteiro, and many others are mesmerized by nature and are quiet harbors.
Portuguese Real Estate Market 2024 Changes
The situation is currently stable, and Portugal property in 2024 is expected to be even more in demand. Freelancers, entrepreneurs, and wealthy people are the most eager to get a second home. Security and the absence of terrorism, climate, and living standards in a developed society attract them. Therefore, the number of new developments is increasing, and the authorities demonstrate attractive conditions to every wealthy citizen from non-EU countries.
You can buy objects located away from the coastline at a distance of more than 100 meters. The government also prohibits deals in parks and protected areas near airports and military bases. Areas such as Obidos, Nazare, and Peniche (Silver Coast) offer a wide range of options for business development, including apartments, villas, and townhouses. The Oeste region leads the way with an increase of 13%.
Types of Real Estate for Investment Available in 2024
We propose to consider Portugal real estate market in 2024:
- Commercial: stores, restaurants, or office space will be profitable. Tourist locations such as Lisbon, Porto, and Faro are particularly attractive.
- Apartments on the coast, especially in popular tourist areas such as the Algarve or Cascais.
- Villas and country houses with land ownership offer privacy and beautiful views, making them attractive to investors.
- Hotels and accommodation: the country has a growing tourist demand. Invest in Portugal real estate and hotel complexes can be profitable, especially in central areas and near popular attractions.
However, before deciding, it is better to consult with professionals in the field for more information and advice.
Risks and Challenges in 2024
Owning an apartment, penthouse, or even a marina is undoubtedly a very promising decision. Still, considering the risks, you will always know what to expect and whether it will be worth the gamble:
- Financial aspects. Prices can fluctuate and change depending on market conditions. It may affect the value of your property and potential investment returns.
- Legal and regulatory risks. The rules and laws can change over time, which can affect the rights of owners. It is important to keep up with legal updates and seek legal and real estate advice.
- Management and maintenance. If you plan to rent out the property, you will face management and maintenance challenges. It may include finding tenants, keeping the property in good condition, keeping track of all legal requirements, etc.
- Currency risk. Fluctuations in the exchange rate between your currency and the Euro can affect your rental costs and income.
Owners are liable to pay taxes on the accommodation. The amount and structure of taxation can change, so you must know your obligations.
Key Considerations for Investors
It is important to carefully consider all risks and challenges and to obtain professional advice before making a decision. Those who have clear intentions to settle in this sunny Iberian Peninsula country will be able to take advantage of the Portugal Golden Visa program and obtain the right to temporary residence, subject to proof of wealth. The foreigner also needs to provide papers on the availability of housing and comply with some other nuances.