Property sales in Portugal’s resorts are up 70% in 2021
Investors are increasingly buying housing in Portugal’s resort areas: around 400 deals were completed in 2021. This is a third more than in 2020. This is the data provided by the Portuguese statistics company Confidencial Imobiliário.
Real estate specialists Immigrant Invest also note an increase in demand for apartments and villas that can be bought in Portuguese resorts. Most often, investors buy housing in the Algarve resorts: in the municipalities of Albufeira, Loulé, Faro and Lagos.
Why investors buy property in Portugal
Wealthy people buy property in the Algarve for themselves and to rent out. Housing in the region is often rented by tourists and residents from other cities of the country. The Algarve has a warm climate, tourists come in the off-season, so real estate is in demand all year round.
Real estate liquidity. In Portugal, property prices are steadily rising. According to Eurostat, the cost of housing in the country has increased by 50% over the past ten years. In 2021, Portugal ranked 12th in the EU in terms of price dynamics.
16% increase in resort property prices in 2021, according to Confidencial Imobiliário.
Additional income. Investors will be able to earn money by renting out real estate: the yield of Portuguese properties is 5‑7% per annum, and in the high season it reaches up to 15%.
Opportunity to become a resident of Portugal. If you purchase an object worth from €280,000, you can get a residence permit in the country. It allows not only to live and travel in Portugal, but also to freely enter other Schengen countries.
How to get a residence permit in Portugal for the purchase of real estate
To become residents of Portugal through the purchase of real estate, needs to take part in the state residence permit program. The program provides eight investment options, two of which are real estate purchases:
new objects worth from €500,000;
objects older than 30 years for restoration from €350,000.
Investment in real estate can be reduced by 20% if the investor buys a property in areas with low population density.
Return on investment is the main advantage of options with the purchase of real estate. The investor can sell the object after 5 years and return the investment. If the rise in real estate prices in Portugal continues, the investor will also earn on the difference in price.
Examples of investment property in the resorts of Portugal
Immigrant Invest is a licensed agent of the residence permit program in Portugal. If you want to become a resident of Portugal or travel around the Schengen countries without visas, please contact investment program experts for advice.