Portugal keeps attracting investors from all over the world due to its upheld culture and tradition. This culture is usually depicted in its striking buildings, with detailed architectural design, which often charms non-Portuguese individuals.
The people of Portugal have also contributed to its popularity in housing investment due to its top-notch hospitality.
Portugal is filled with accommodating people who love to share their stories and culture with listening ears. Thus, it is an opportunity for investors to diversify their portfolios by owning a housing property.
This is mainly due to the increased chance of finding buyers who understand houses’ worth in Portugal. Consider buying properties for the Portugal Golden visa for low-density areas. You will be making the best decision as this real estate opportunity has many offers on its plate.
The Rise of Real Estate Investment in Portugal
Many local and foreign investors developed an interest in Portugal houses in 2013 after the depression period was over. Also, Portugal records a larger percentage of home buyers than many other EU countries with a large number of rentals.
A common factor contributing to real estate investment in Portugal is its low cost of living. The tax imposed on homeowners is relatively cheap, especially in low-density areas. You can live a peaceful life without worrying about unnecessary drama or attraction.
As prices kept increasing, the Covid-19 outbreak took a turn of events in Lisbon real estate prices. The past five years have recorded a 60% increase in Portugal’s real estate properties. Despite the rapid rise in the price of properties, investors are taking advantage of Lisbon’s affordable prices.
The price difference between Lisbon prices and many other Western Europe capitals is about an 11% difference in the price increase. However, the real estate cost in Portugal seems reasonable, considering the cost of living in other European countries.
It is safe to say that the negative economic shift most countries currently experience is a result of the pandemic outbreak.
Why You Should Consider Owning an Asset in Portugal
The Portuguese government allows foreigners to become residents with the Portugal Golden visa, provided you can invest in an asset in Portugal. As much as this provides added advantage to the Portugal economy, it also provides stability as an investor.
Portugal is a country with several sources of attraction and recreational services for foreigners. You can buy a house to use as a vacation abode for visiting individuals. The real estate business is dynamic and usually progresses toward growth. Investors are more likely to earn capital gain in the coming years.
However, it often requires an enormous financial commitment, independent of the population density.
Best Places to Buy House in Portugal
If you are investing in low-density areas, your potential customers will likely be family-oriented individuals. The number of buildings in these areas is usually tiny, so you want to invest in the best and most profitable option. You need to understand your audience and how the market system works.
Thus, location is a critical factor to consider before buying a house. Portugal’s top three cost-friendly places are Lisbon, Algarve, and Porto. Despite the COVID-19 effect on the cost of living, these places have a massive presence in the property market.
For instance, investors can buy a two-bedroom apartment in Lisbon for about €250,000. You can also get a house for €2,154 per meter in cities like Portimão.
The Portugal Golden Visa Requirements
You can obtain a Golden Visa in several ways, but one of the most common and efficient is investing in Portugal properties. Thus, the Portugal Golden visa rule is now mostly in favor of low-density areas. However, you need to read through the updated scheme to confirm if any requirements have been adjusted.
The condition was updated in early January 2022 to enhance development across the country. Also, investors are more likely to enjoy incentives such as a 20% discount, which comes with investing in low-density areas.
The country has several areas that are open to diversities of investment. You may want to shift away from high-density areas such as the Azores and Madeira to the low-density regions of Portugal. Despite the small size, civilization will likely occur in these places sooner than later.
More so, people are migrating into the interior areas of Portugal, as remote workers prefer quiet environments. The stress and responsibilities of 9 am-5 pm jobs in the cities can be overwhelming.
Thus, the Portugal Golden visa is an opportunity for investors to partake in the ongoing change and immigration into the low-density areas of Portugal.
