The Portuguese real estate market is experiencing uncertain and at the same time challenging times, with calls from across the sector for more housing supply. Demand for real estate in Portugal continues to be high, namely from foreign investors. But is real estate in Portugal a good investment in 2023, in times marked by a worrying economic conjuncture? We have the answer, thanks to the following arguments from Engel & Völkers.
"Competitive house prices, the demand for short-term rental properties and the excellent investment opportunity for those seeking long-term income are the main reasons to invest in Portugal," Engel & Völkers (E&V) begins in a statement. "The combination of a good climate, quality of life, proximity to beaches and the fact that it is the sixth safest country in the world are some of the factors that make Portugal a very attractive country for foreign investment," the statement read.
According to the real estate brokerage, there are 3 reasons that show that investing in the real estate market in Portugal is a good option:
Competitive house prices
Despite the constant increase in demand for property in Portugal, prices remain very competitive when compared to other European countries. According to the National Statistics Institute in Portugal (INE), in the last quarter of 2022, the average price per square metre (m2) in Lisbon was around 1,446 euros, a "very competitive value when compared to other cities in Europe".
Excellent investment opportunity for those seeking long-term returns
In terms of profitability, the country continues to be one of the most sought after destinations in Europe, with the tourism sector continuing to grow. "This gives rise to an increase in demand for short-term rental properties, which becomes a great opportunity for those considering investing in Portugal," says E&V.
Demand for short-term rental properties
"It is notable a significant increase with regard to the demand for properties for short-term rental and for investment for Local Accommodation," the mediator adds, stressing that Portugal, in recent years, "has become one of the most popular and sought-after tourist destinations in Europe." An increase in demand that is due, for example, to factors such as the climate, security, the cost of living and the possibility of working remotely.
Quoted in the note, Vanessa Moreira, Sales Director at E&V Portugal, comments that the country "had a great boom at the level of the real estate sector" and recalls that, in 2022, it was considered the 20th country with the highest quality of life index in the world, influenced not only by purchasing power, but also by the cost of living, climate, safety and quality of the environment. "These factors make the purchase of a property in Portugal a good and safe investment, regardless of whether it is for first or second homes. Currently, Portugal is one of the most sought after countries for foreign investment, which currently corresponds to about 63% of all transactions made in this sector," she notes.
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