Investing in real estate in Portugal

Investing in real estate in Portugal | Is it profitable?

Yes, real estate in Portugal is profitable and offers excellent opportunities. However, that doesn’t mean you should act recklessly. Crises, pandemics, and other factors require you to carefully evaluate the economy before making investments — considering the market, costs, returns, and profits.

Surprisingly, this is often when the best opportunities present themselves! Property prices in Portugal remain affordable compared to other European nations, and the country offers long-term assets that translate into solid real estate prospects.

Real estate prices in Portugal have been steadily rising, but they remain relatively reasonable, particularly for international buyers. With new developments across all market segments, now is the time to do the maths and invest in real estate in Portugal!

Investing in real estate in Portugal | Are there any incentive programs?

Absolutely! Portugal offers several programs designed to encourage foreign investment, such as the Golden Visa Program and the opportunity to obtain Portuguese citizenship after five years of investment and residency.

What is the Golden Visa Program?

The Golden Visa (Law nº29/2012) is a program that allows foreign investors to obtain a special international residence permit by making qualified investments in Portuguese territory. This offers a range of benefits, including the right to live, work, and study in Portugal, as well as privileged access to countries with which Portugal has strong relations. Plus, you can purchase property in various locations, from bustling cities to the scenic beaches of the Algarve! You can learn more about the Golden Visa Program with our Complete Guide.

Investing in real estate in Portugal | What are the best options?

The best investment options depend on your investor profile, but there are several strategies to consider in the Portuguese real estate market. Some options involve higher risk but offer higher returns, while others are safer but yield moderate returns.

Let’s take a look at some of the top choices:

1. Investing in properties at the planning stage

While riskier, buying property in the planning stage offers the potential for significant profits. You can either sell the property at the beginning of construction or once it’s finished. The builder's profit can essentially become your profit.

2. Investing in land

For those with patience, land is a solid investment. Over time — and with the horizontal expansion happening in Portugal — land becomes increasingly valuable. Plus, land is simple to maintain with minimal expenses. Before buying, assess the area's growth potential, access to transport links, quality of infrastructure, and local amenities.

3. Investing in new properties

Whether residential or commercial, purchasing a ready-to-move-in property (which can later be rented or sold for a profit) is always a good investment. While the return is typically lower than with land or property under construction, it offers lower risk and is safer.

4. Investing in used properties

For a more affordable alternative, consider buying used properties. Look for homes that others overlook and are therefore cheaper. Renovate and sell at a higher price for a profit — or keep the property for personal use!

Investing in real estate in Portugal | What is the best area of the country?

Honestly, any area of Portugal can be a great choice for real estate investment. However, many Portuguese and international investors prefer to invest in the Algarve over larger cities like Lisbon and Porto. Why? Because the Algarve offers several unique advantages:

• The sun shines nearly 300 days per year.

• The quality of life is excellent.

• You can enjoy both tranquillity and vibrancy — the choice is yours!

• The cost of living is lower compared to Lisbon and other European cities.

• There are plenty of fantastic beaches!

• A wide variety of stores and services, including healthcare and education, plus cultural centres and recreational spaces.

• Quick and easy transportation thanks to a vast network of roads and public transport. There's also an airport in Faro!

So, investing in real estate by the sea in Portugal is a smart choice!

How to invest in Algarve real estate?

If you're committed to investing in Algarve real estate and want to achieve a great return, the first step is to find a reliable real estate agent, like Engel & Völkers Portimão!

Here’s why:

• Customised service.

• Experience in all legal and bureaucratic processes involved in purchasing and selling property in Portugal.

• Extensive knowledge of property prices and market conditions.

• A vast network of contacts.

• A multidisciplinary team, dedicated to assisting you throughout the investment process.

• Constant follow-up, ensuring all administrative, legal, and financial procedures are handled smoothly, including licensing, energy certificates, contracts, and deeds.

By following the right steps and partnering with a knowledgeable real estate agent, your investment in Portuguese real estate can be a rewarding venture!