Real estate in Portugal: cost of renting three-bedroom apartments in 2021
Investors buy real estate in Portugal in order to obtain a residence permit. Property can be rented out and get additional income up to 7% per annum. We tell you how much it costs to rent an apartment with three bedrooms in different regions of Portugal.
Prices for the purchase of Portuguese real estate are increasing by an average of 7% per year, according to analysts from the auditing company PwS.
Rental rates for real estate are also on the rise. For example, in January 2020, the average rental price of rental housing increased by 3.4 % compared to January 2019.
Portuguese real estate prices rose more slowly in 2020 because of the crisis against the backdrop of the coronavirus pandemic. But already in the first quarter of 2021, the cost of residential real estate rose by 17,4% compared to the first quarter in 2020. The growth will continue in the second half of 2021. The economy has just begun to recover from the crisis.
Rent costs in different regions of Portugal
Portugal is divided into seven regions. Popular tourist destinations are the major cities of Lisbon and Porto, the Algarve resort area, and the Azores.
The average cost of renting a three-bedroom apartment in Portugal
Data source — Numbeo.com
Why investors choose real estate more often
Real estate in Portugal is a liquid asset and the most sought-after investment option under the residence permit program.
326 investors received a residence permit in Portugal in the first four months of 2021. That’s a 20% increase over the same period in 2020.
73% of investors chose the option with the purchase of real estate from €500,000 — the total amount of transactions amounted to 129.6 million euros. Another €28.6 million was earned by Portugal on the option to buy properties under renovation.
Investors plan the purchase of real estate based on their goals and budget. Some buy real estate in the financial centers of the country, Lisbon and Porto, for long-term residence with family. Other investors choose real estate for rent in the resort areas — the Algarve, Madeira, the Azores.
The conditions of the program will change on January 1, 2022. The minimum amount of investment will increase, and real estate will be allowed to buy only in the Azores, Madeira, and the interior regions of the country. In major cities and resorts will be possible to buy only commercial real estate and objects under restoration.
While the old rules are in force, investors can buy real estate in any city in Portugal, such as Lisbon and Porto.
Examples of real estate under the residence permit program in Portugal
What an investor will get when buying property in Portugal
The investor will receive a Golden Visa of Portugal, a country that is part of the European Union. A residence permit in Portugal is issued for an investment of €350,000 or more. The program provides eight options for investment in the country’s economy. The term of registration of the residence card takes from two months.
Investment options under the residence permit program in Portugal
Buying real estate
Deposit in a Portuguese bank
From €1 million
Buying government stock
From €1 million
Purchase of units in investment funds
Investments in scientific activities
Investing in cultural heritage
Creating a company with a central office in Portugal and 5 workplaces
Opening a business and creating at least 10 jobs
The amounts are not specified in the law
At the same time as an investor, family members of the investor can obtain a residence permit in Portugal. Holders of a golden visa live in the country, conduct business and enjoy a preferential tax period for the first 10 years. Residents are also free to travel within the Schengen area.
In June 2021, Portugal partially lifted restrictions on entry: the island of Madeira is open to tourists. Anyone who tests negative for coronavirus can visit the country. Before the trip, it is necessary to fill out a questionnaire on the website madeirasafe.com.
Immigrant Invest is a licensed agent of the residence permit program in Portugal. If you want to move to Portugal and travel to Schengen countries without visas, seek advice from investment program experts.