Would you like to live in Portugal or buy a property to increase its value and later sell or rent it out with great profitability? Well, know that Portugal is the right country and the right investment! And by the way... this is also the right blog article to understand when, how, and why you should invest in real estate in Portugal!
And to spark your interest, let us tell you that investing in real estate in Portugal brings above-average returns when compared to returns in other European countries. That's why the market is attracting more and more national buyers, but mainly international investors, including foreigners who see Portugal as one of the best places in the world to live! And it is true! The climate is mild, the sun shines almost every day, the geography has been blessed with a series of natural beauties, and the cost of living is low... while the quality of life is high!
Yes, real estate in Portugal is profitable and brings good opportunities, but that doesn't mean you can act without caution! Crisis, pandemics, and others, force you to evaluate the economy before investing: market, cost, return, and profit, among other variables.
Still, you will be surprised to find that this is precisely the time when you can find the best opportunities! More, property prices in comparison to prices in other European countries are affordable, and Portugal has solid long-term assets that can translate into great real estate opportunities.
Well, it is also true that real estate prices in Portugal are constantly rising, but they are still reasonable values, particularly for international buyers. So, with new developments for sale in all market segments, it's a matter of doing the math now to invest in real estate in Portugal!
Of course! Portugal has developed programs to encourage foreign investment, such as the Golden Visa Program and the granting of Portuguese citizenship after 5 years of investment and residence in the country.
What is the Golden Visa Program?
Golden Visa (Law nº29/2012) is a program that offers foreign investors the possibility of obtaining a special international residence permit when making qualified investments in Portuguese territory. Therefore, investors gain a number of consequent benefits of residing in Portugal: living, working, or studying in a safe country, privileged access to territories with which Portugal has good relations and, of course, buying a property in different scenarios, from big cities to the best beaches in Algarve! Learn more about the Golden Visa Program with our Complete Guide.
The best options depend on your investor profile, but we can anticipate that there are several possibilities to invest in the real estate industry in Portugal: some with higher risk, but higher return; others with lower risk, but moderate return.
Let's know in more detail some of the best options?
1. Investing in real estate in blueprint
It is riskier, but the truth is that if you buy a house in the planning stage, you can sell it at the beginning of construction or after it is built, with great gains! Basically, when the house is finished, the builders' profit would be yours!
2. Investing in land
If you are a patient person, invest in land! In the long run — and with the horizontal expansion in Portugal — they will be extremely profitable! Besides, land is simple and easy to maintain, without major expenses! But before you close a deal, analyze the growth of the area, the shopping, the access, and public transportation, the quality of the buildings, etc.
3. Investing in new properties
Whether it's a residential property or a commercial property, there is no doubt that buying a ready-made property (which can even be sold or rented out after the appreciation of its value), is always an investment with return. Of course, we are not talking about a return as high as buying a plot of land or a house in the planning stage, but it is safer!
4. Investing in used properties
Alternatives to buying land, a house in the planning stage, or a new property? Look through real estate agents for used properties that no one will pick up and are therefore very affordable. Then renovate, sell at a good price and make a profit... or keep the house for your own use!
So, investing in real estate in Portugal by the sea is a sure bet!
If you are determined to invest in real estate in Algarve and get a good return, the first thing to do (right away!) is to find a reliable real estate agent, like Engel & Völkers Portimão!