Over recent years, the general economic situation in Portugal has been up, down and all over the place. Just as with much of Europe in general, things weren’t particularly stable for a good few years. All of which had an inevitable effect on the Portuguese property market, significantly lowering average property values and diluting interest among investors.
Nevertheless, fast-forward to 2018 and things really couldn’t look more different.
The Start of Something Big
On a global basis, investors at all levels are setting their sights on various different types of property for sale in Portugal. Out of nowhere, Portugal has once again become one of the hottest investment destinations in Europe for buyers on a variety of levels.
The statistics would seem to suggest that the average property prices in Portugal are steadily on the rise. Whether this is a direct result of increased interest in the country among investors is anyone’s guess. The whole cause and effect thing in this instance is difficult to dissect. Not that it really matters, just as long as things are heading in the right direction – which they are.
Despite having been labeled as a relatively unattractive destination for property investment not so long ago, naysayers are being forced to eat their words. Looking at things from a short-term perspective, making a ton of money as a short-term investor in Portuguese property is likely to prove challenging. Nevertheless, anyone looking at things from a more long-term perspective could find the pickings richer than they imagined.
With property prices on a slow but steady climb – up 1.48% in the past year alone – those who take advantage of the still-low property prices in Portugal really could be onto something.
Once again therefore, the statistics paint a positive picture of Portugal. Property prices are still comparatively low, average house prices are on the up and interest among investors at all levels is accelerating.
The question being – why Portugal? What is it about Portugal that suddenly thrust much of the nation on to the radar of investors worldwide?
As you’d expect, it’s a multitude of combined factors. The simple fact of the matter being that when you combine just a few of Portugal’s most appealing points, it doesn’t take a genius to figure out its attractiveness.
A few examples of which include the following:
1. Tourism trade
Over the past few years in particular, the tourism industry across much of Portugal has exploded in popularity and value. More people from across Europe and the rest of the world than ever before are choosing to spend their weekends, fortnights and extended stays in dozens of attractive resorts across Portugal. Once-vacant inventory subsequently became the kinds of in-demand properties that pack a serious punch price-wise. Hence, a large proportion of those investing in Portugal set their sights on buy-to-let properties for holiday rentals.
2. Year-round climate
The fact that Portugal enjoys a quite idyllic year-round climate extends the appeal of the country to all four seasons. Along with having a huge beneficial impact on the country’s tourism trade, this also attracts retirees and expats in general planning moves to sunnier climes. This in turn makes Portugal an attractive investment and destination in terms of long-term lets and resale properties alike.
3. Lower living costs
Despite being one of the most beautiful and desirable countries in Europe, everyday living costs in Portugal are surprisingly low. Things tend to get a little more expensive in the bigger cities and more developed resorts, but you’re still looking at significantly lower living costs than any comparable town or city in the UK, for example. For those relocating to Portugal, this can be advantageous for obvious reasons. For investors, it’s yet another point of appeal for those looking to rent or buy their properties respectively.
4. Simplified purchase processes
Extensive government initiatives to bring more investment interest into Portugal has seen the purchase process for foreign investors simplified enormously. There are so many incentives available right now for international investors looking to buy into the Portuguese property market. This alone has radically transformed the potential for turning a profit on Portuguese properties in key regions.
5. Projected growth
And if all this wasn’t enough, evidence would seem to suggest that the positive improvements being seen across Portugal right now are only set to accelerate over the coming years. Growth may have been relatively modest as of late, but economists are confident we’ve only just begun to see the shape of things to come.
In a nutshell therefore, the answer is relatively simple. Choose the right property in the right location and Portugal is a simply outstanding prospect for property investment. Particularly for those looking to take advantage of todays comparatively low prices while the opportunity remains.