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Latest News
02 November, 2022

Investors are increasingly buying property in Portugal resorts

Resort property sales in Portugal increased by 20% in the first quarter of 2022. Property prices remained roughly the same. The data is provided by the statistical analysis company Confidencial Imobiliário.

Real estate experts also note that the number of offers on the market diminishes, which increases property prices.

Residence permit in Portugal for investment in real estate
Photo: Adobe Stock

Confidencial Imobiliário is an independent statistical analysis company in Portugal that publishes the Portuguese Resorts Market Report twice a year.

The average purchase price of residential properties in the Portugal resorts was €4,301 per 1 m² in the first quarter of 2022. During this period, property prices increased by only 1,5%. But year-on-year growth remains significant and is +14,6%.

By 14,6%
Have increased resort property prices in Portugal over the year

The real estate prices increase was facilitated by the lifting of movement restrictions within Portugal, as well as the opening of the country's borders to foreigners.

6,4% of real estate purchase and sale agreements in the first quarter of 2022 were with foreigners, according to the Portuguese Institute for National Statistics.

Real estate transactions in Portugal were made by foreigners

Investors most often buy properties in the Algarve resorts. Real estate prices in the region are comparable to prices in large cities. Prices also depend on the location: in non-tourist cities, a property can be bought two to three times cheaper than in Lisbon or Porto.

Algarve attracts investors with the opportunity to rent out real estate and earn additional income. The properties are in year-round demand among both tourists and Portuguese from other regions since they spend their holidays in the Algarve even in the off-season.

Why investors buy Portugal real estate

Investors buy real estate in Portugal to spend vacations in a country with a warm climate while staying in their own home. Investors also rent out properties and receive additional income.

Buying a liquid asset. The value of Portuguese real estate is growing every year: since 2010, property prices have increased by 75%. The data is provided by Eurostat.

If the investor sells the property after some time, they will not only return the money but also receive income from the cost difference.

Getting additional income. Investors also earn money from renting out real estate. The profitability of Portugal properties is 5—7% per annum, and in high season it reaches 15%.

Becoming a Portugal resident. If an investor buys a property that meets the state program conditions, they will be able to obtain a residence permit in the country. With a residence permit, they can live and work in Portugal and travel freely to other Schengen countries.

How to get a residence permit in Portugal for the purchase of real estate

To become a Portugal resident, investors participate in the state Golden Residence Permit Program.

The program provides eight investment options — two of them are buying real estate: 

  • new properties for €500,000 or more;
  • properties older than 30 years, for restoration, for €350,000 or more.

Investment in real estate can be reduced by 20% if the investor buys a property in an area with a low population density.

Residential properties can only be bought:

  • in the Azores or Madeira;
  • in the interior regions of the country.

The interior regions do not include the large cities of Lisbon and Porto or the coastal and resort regions of Portugal. Commercial real estate is available for purchase in any region of the country.

Return on investment is the main advantage of real estate purchase options. Investors can sell their property in 5 years and return the investment. Real estate options are chosen by about 80% of the residence permit program participants.

Immigrant Invest has its own real estate department that works with European developers directly. We check the legality of properties and fully supervise the entirety of a real estate transaction process.

Natalia Oganesyan - Immigrant Invest
Natalia Oganesyan
Real Estate Chief Operations Officer, RICS certified professional

Examples of Portugal real estate for investors

Residence permit in Portugal by investment

One-bedroom apartment in a five-star resort hotel in Cascais. Prices start from €600,000. Yield — up to 5% per annum

Residence permit in Portugal for real estate investors

Share in a four-star hotel in Lisbon. Prices start from €350,000. Yield — 3% per annum

Residence permit in Portugal by real estate investment

Share or apartment in a five-star hotel with vineyards in Evora. Prices start from €280,000. Yield — 2% per annum

Immigrant Invest is a licensed agent of government programs in the European Union and the Caribbean. If you want to buy a property in Portugal and become a resident of the country, please consult investment program experts.

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Investors are increasingly buying property in Portugal resorts