Yacht harbor opened in Olhão. How will this affect the real estate market in Portugal?
Porto Recreio de Olhão — a harbor in a small Portuguese town — is officially open. It was built in 2001, and in 2017 the management of the harbor was transferred to the private company Verbos Do Cais.
The management company invested 8.5 million euros in the reconstruction of the harbor. Construction continues in 2022. But the basic infrastructure is already in place: new marinas, a gas station and an entertainment center.
We explain why the project is important for Portugal and how it will affect the value of real estate in Olhão and the Algarve region.
Olhão is a small seaside town in the south of Portugal, in the Algarve. It is the largest fishing port in the region. Olhão is also popular with owners of yachts, boats and boats — it is open for navigation all year round.
Four urban beaches in Olhão are marked with the Blue Flag for the purity of the sea water.
Olhana is comfortable in summer and not cold in winter: the city is located in the Mediterranean climate zone. The architecture of the city is represented by the Moorish style and harmoniously coexists with modern villas and hotels.
Porto Recreio de Olhão was built in 2001. The local authorities handed over management of the harbor to a private company, Verbos Do Cais, in 2017, on the condition that they invest 8.5 billion euros in its development. In 2022, Porto Recreio de Olhão has:
20 moorings for yachts;
a new dock for the repair and storage of ships;
ship refueling station;
ramp for lifting and launching;
places for rest;
shops, restaurants and bars;
round the clock security.
The developer also plans to build a new shipyard and additional moorings, and a diving team will work on the harbor area. You can see what Porto Recreio de Olhão looks like on the official website of the management company.
The Olhana harbor is located in the Ria Formosa natural area. Therefore, the harbor management will safely dispose of waste and fight for the status of a "green port".
1,162 yacht owners have their names on the waiting list for a boat berth in the harbor of Porto Recreio de Olhão.
Real estate prices in Olhão and the Algarve
The reconstruction of the Harbor in Olhão is one of the biggest projects in the Algarve in recent years. It will affect the real estate market both in the city and throughout the region. Portuguese real estate experts note that property prices in the region will rise two to three times in the coming years.
The Algarve is one of the regions with the highest real estate values in Portugal. The average price of residential properties is €2815 per square meter in July 2022, according to the Idealista portal.
The cost of residential real estate in Olhão is lower: when buying an object in the city, a square meter will cost €2505.
How to get a residence permit in Portugal for the purchase of real estate
Portugal has an investment program — Golden Residence Permit Program. Two program options allow you to obtain a residence permit for investment in real estate:
From €350,000 — to objects older than 30 years old for restoration.
From €500,000 — to primary or secondary objects that do not require restoration.
If you buy an object in a region with a low population density, then the amount of investment is reduced by 20%. In this case, objects for restoration should cost from €280,000, the rest — from €400,000.
An investor can buy one or more properties in order to fulfill the condition for the minimum transaction amount. You cannot combine options, for example, all objects must be under restoration.
Investors can also obtain a D7 visa, which gives the status of a residence permit in Portugal. To apply you need:
Buy or rent property in Portugal. There are no minimum investment requirements.
Verify a monthly income of €750, or €8460 per year.
Get an individual tax number: with it you can open an account in a Portuguese bank and invest in real estate.
Examples of investment properties in the Algarve
Immigrant Invest is a licensed agent for government programs in the EU and the Caribbean. If you want to get a residence permit in Portugal and buy real estate in the country, please contact investment program experts for advice.