Portugal property prices were expected to decrease, however dueto positive steps by the country the property industry has not only been sustained but continues to rise.
Apartments are clearly favoured among foreign investors in the Algarve. Property used for holiday rentals are among the most interesting and popular real estate in the Portuguese market with many investors purchasing to see a return on their investment. Across the Algarve places such as Albufeira, Vilamoura, Quinta do Lagoand Vale de Lobo are some of the more popular locations for those looking to invest.
There are no restrictions on foreign property buyers in Portugal and transaction costsare fairly low typically 6% of purchase price. Since 2012, non-European investors have also been entering the Portuguese property market in increasingly large numbers due to the introduction of the Golden Visa, which enables property investors to obtain residence permits.Between October 2012 and June 2016, foreign investors obtained over 3,400 residency permits.
The total cost of the residential property acquired by these investors amounted to approximately €1.9 billion, the average amount invested by the buyer was about €580,000.
Analysts are positive about the Portuguese property market going forward due to its proven record of resilience and relatively low property prices. It didn’t suffer through a housing bubble prior to the 2008 crisis and its housing prices stayed afloat during the recession, Portugal’s current market boasts prices that are particularly attractive when compared to others within the European market.
If your ready to learn more about buying or investing in Portugal, we look forward to helping you throughout the process.