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.