With little shortage of demand the Portuguese property market is thriving. Despite increasing prices property sales were up by just over 16% in the three months to June.
A transaction value of €4.6 billion saw the sale of nearly 37,000 homes across Portugal. With continued property interest in Lisbon which accounted for 48% of the revenue of over 13,000 completed property transactions in the Lisbon area.
Figures based on the Residential Real Estate Index show a similar growth of a 6% increase on year on year property values to May 2017, one of the sharpest increases seen since the 2009 financial crisis.
There is plenty of news reinforcing optimism in the Portuguese property market and in the countries prosperity.
Publicly funded projects are up by 90% creating jobs worth €2 billion, and housing investment sitting significantly above the GDP with a continuing rise in house prices being forecast beyond 2017.
The Bank of Portugal acknowledges that investment in the property market has rocketed with a 7.9% increase in the first quarter of 2017. A large portion of the property demand is being driven by foreign investors, and directly contributing to the rise in house prices. As far as foreign buyers and investors are concerned, Portuguese property is still an excellent investment and value for money.
The picture so far this year:
With the country's improving economy Portugal property prices continue to rise and point toward a very strong backdrop for demand, this supported by the steady rise in new buyer enquiries with an increased interest in the number of investors, has seen a shift in buyer profile and a drop in the number of sales listings this year.
The lack of rental property is pushing up prices and rents across the country and whilst there will always be investors who opt to invest in the holiday market and maximise returns by renting to tourists, long term rents have a potential to offer a solid income making this worth serious consideration.
There are no restrictions on foreign property ownership in Portugal and transaction costs are generally low.
Portugal grant a Golden Visa which is a 5 year residency permit to non EU citizens who buy a property of a minimum of €500,000 This permit allows holders to work, study and to travel in Schengen countries with an option to apply for permanent residency after 5 years and citizenship after 6 years without the need to reside in Portugal.
We are seeing sustained growth and activity, with the number of agreed sales continuing to rise in all 3 key regions, (Lisbon, Porto and the Algarve).
Looking ahead sales are expected to rise further in all regions with prices continuing to increase nationally, albeit slightly less than the record rate growth earlier this year.
The number of new sales listings are dropping, the Algarve reported the most significant drop of new property listings coming to the market since 2011, this lack of supply supports the price growth.
The number of dwellings in new construction is on the rise after plummeting by 90% to 6,785 units in 2014 from 65,650 units in 2007.
The improved economic conditions after several dismal years can be attributed to an increase in the country's exports according to the bank of Portugal. With an expected rise of 1.1% growth in 2017 according to the IMF.
Quote: Simon Rubinsohn, RICS Chief Economist "Employment growth has accelerated across the Portuguese economy in recent months with the latest figures showing an annual increase is excess of 3%. This sustained improvement continues to support housing market activity, and prospects for further growth over the year ahead look promising given the micro climate."
In short from a foreign investor perspective Portuguese property seems to be an increasingly reliable, solid investment and astonishingly good value.
Edgar Simmons Services
Based in London Edgar Simmons is Regulated by the Royal Institution of Chartered Surveyors (RICS) and provides a professional commercial and residential property purchase and sales service.
The RICS is the world’s leading professional body for qualification and standards in land and property, it assures competence and enhances the status of professionals and provides confidence to consumers and markets.
We offer a selective portfolio of quality Portuguese real estate investment opportunities. We ensure that property acquisitions & sales in Portugal are subject to the same rigorous criteria and professional standards that we apply in the United Kingdom. Our services include:
We evaluate our client’s requirement on a case-by-case basis, and based on their criteria initiate the property search.
Once a suitable property is identified we undertake extensive due diligence to ensure the value of the investment.
Throughout the process we act in our client’s best interests. Our services include:
Our services include:
Having spent years in the doldrums along with many other European countries The Portuguese property market is gaining pace with significant demand in Lisbon spreading into the provinces.
This is reflected in a renewed demand for investment properties with managed rental schemes and lifestyle options.
Portugal has recently been ranked the 3rd safest country in the world in the Global Peace Index as published by the Institute for Economics and Peace and has become one of the most attractive countries for foreign investors and their families.
The Golden Residence Permit Programme, (Golden Visa), gives foreign investors who spend 500,000 Euros on a property the right to live in Portugal.
They are free to travel around all the EU countries in the Schengen area and after 6 years can apply for Portuguese citizenship.
The attractions and benefits of the programme include: