Real estate in Lisbon and the Algarve
These two regions show the best drive and are investors’ favourites. During 2014 first semester only, real estate investments added up to 14 billion euros, including 43% for the Algarve only.
In a tough and unsettled economic market, real estate is more than ever a solid value. Portugal is well aware that these investments, particularly the French ones, boost economic development. Therefore, this country offers significant benefits to candidates willing to settle as well as to investors.
A profitable real estate investment
Whether it is in the new or pre-owned property sector, prices are, on average, 30% lower with a price per square metre close to 1 200 € in Lisbon and lower than 2 000 € in the Algarve, except for the luxury market and depending on which type of property and the areas in both regions.
With some research and a drive toward renovation (less expensive than in most of European countries), we can find properties at a lower price than this average.
Yield prospects in the rental property are from 5 to 6% in Lisbon and the Algarve. A lot of upcoming real estate developments in Lisbon promise high quality fixtures and fittings, whether it be comfort or equipment and services. Given that prices can only raise, now is the time to make good bargains, profitable within years, especially as the range provided is large.
A real estate revival already well underway
Real estate prices in Portugal have increased between 10 and 20% in Lisbon since 2013. The Algarve is distinguished by its supply far exceeding the demand. Prices had fallen by 30% in some areas.
All the indicators show that we are heading towards a rebound stage in this region. French investors can be assisted throughout the entire process. The European legal framework guarantees transactions in this country acclaimed by European retired investors.
Translated by Sylvain Muller – Meretdemeures.com.
