The Portuguese Property Market is Red Hot Right Now
Are you looking to sell property in Portugal fast? Well, you might be in luck as the Portuguese property market is RED HOT right now. It is very much a seller’s market, where sellers are kings.
Consider the home prices in Lisbon, the capital of Portugal. Home prices here went up by 35 percent over the last 5 years. They have already surpassed the highs last seen in the pre-crisis period in 2007.
The demand for properties is so high that buyers have been bidding much above the asking price for the properties. The local real estate professionals couldn’t be happier.
One Portuguese real estate agent says in an interview with Bloomberg, “There’s a big gap between supply and demand. It’s reached a point where some investors offer to pay above the asking price just so they can close a deal.”
Jose Cardoso Botelho, a real estate developer who works for the French-Swiss investor Claude Berda says, “There are a very limited number of buildings located in the center of Lisbon to purchase. We’ve started looking for building plots on the outskirts of the city now, but it hasn’t been easy.”
But there is such a thing as the market being too hot. A majority of the locals have been pushed out of the property market and it’s only high net worth foreign investors who can afford to buy property in Portugal right now.
Other regions in Portugal, such as the sunny Algarve are doing spectacularly well. The Algarve is well known for its lovely climate, beach resorts, high quality lifestyle and access to modern amenities.
Apartments in the Algarve are going for €100,000 or more. There are many luxury villas here that are selling for millions.
Also popular are the rural areas, especially the villages in regions such as Castelo, Santarém, Branco and Leiria. There are many lovely cottages here that can be purchased for a great price.
Any home purchased in Portugal can serve as an excellent source of passive income. The holiday rental market has been flying here, because of the surge in the tourist market.
The number of foreign tourists visiting the country has gone up by 12 percent over the last 12 months, going up to a record 12.7 million in 2017. Impressive!
This creates a huge demand for holiday homes, especially those that are located near the beaches or next to a golf course. It also helps that the cost of living in Portugal is much lesser than that in Spain, which is Portugal’s biggest competitor in the overseas property market.
The Portuguese government has done its best to help, by providing excellent tax incentives to foreign investors who want to buy homes in Portugal. The Non-Habitual Residence (NHR) program makes Portugal Europe’s most tax-friendly destinations for international investors right now.
Non-EU citizens especially from China have benefited from Portugal’s Golden Visa scheme. Any foreign investor who buys €500,000 worth Portuguese properties gets automatic residency and the freedom to move freely across the Eurozone.