The real estate market of European countries has been attractive to investors for a long time. If in the past, businessmen preferred to invest in Italy and Spain, than now the vector has shifted to Portugal. Analysts show that in 2019 real estate in Lisbon is a promising market sector, and the city is ahead of many European cities in terms of growth.
Portugal is a dynamically developing country with a stable economic and political situation. In 2017, GDP grew by 2.4%, in 2018 — by 2.1%, and by the end of 2019, an increase of 1.7% is expected.
Properly organized events in the state contribute to raising the standard of living of the population, which, in turn, leads to the development of various spheres, including the real estate market.
Since 2017, there has been a steady growth in the construction sector, which has been able to overcome the decline in the industry, which lasted for 19 years.
Recently, a state program has been operating, the purpose of which is the restoration of buildings and the revival of historically valuable properties in the cities of the country.
Correctly built policy yields its results: in 2017-2018, the value of real estate increased by 23%. During this period, home sales in Portugal increased by 19%, while this figure in Lisbon — by 22%. Many large international companies open representative offices in the country, invest in the market, expecting high returns.
The cost of real estate in Lisbon has stable growth. For a square meter of space, located in the old building you need to pay 3-4 thousand euros. In the new house, this figure is 5-7 thousand euros, and when you buy a property in the central areas of the city you will have to pay about 10 thousand euros. To buy an apartment in the capital, you must count on the amount of 200 thousand euros.
For foreign investors, there is a mortgage option, which is given at 2.5% per annum. For the entire period, it will be 50-60% of the total price of housing.
There has been a sharp increase, by about 60%, in the value of the real estate in Lisbon, located in the center of the capital. The prices of some offers are equal to those in Paris. This trend in the market will continue for 5 years, the value of properties will increase by an average of 5.5%.
Increased demand for real estate in Lisbon caused a rise in rental rates. With a long-term rental yield on average will be 5%. The best option to get a stable profit is an apartment with a small meter.
One of the priorities of development of the state is to provide favorable conditions for attracting foreign capital. Since 2012, foreign investors can obtain a residence permit by investing in the country’s economy, including real estate. This requires the purchase of a property worth up to 500 thousand euros. This program for obtaining a residence permit acts both for the investor and for their relatives. After 5 years, each of them can receive citizenship.
The tax system for buying property in Lisbon is simplified. Here the rates are much lower compared to other European countries. Such a policy allows us to consider the state and its capital as an excellent investment option.