Why living in Portugal is GREAT!

Why is living in Portugal a good idea, what are the best places for that, what prices, and whether there are any disadvantages if such an idea? These are the topics we reveal in this article, and they will be especially useful to read for those thinking of living in a warm and pleasant country.

Why Portugal is a beautiful place to live?

Here we consider the reasons why you should consider living in Portugal, which may become a huge investment for your future relaxed life or just a retirement.

Extensive luxury features – for less

Portugal is full of charming beach houses, comfy city apartments, and secret mountain mansions. The best thing is that they are all less expensive than their Spanish counterparts. One of the reasons foreigners fell in love with Portugal was because of its affordable houses.

Golden visa (Reference )

Non-EU residents can use this visa to acquire real estate in the EU in exchange for full residency. This implies getting full Portuguese residence and visa-free entry to the Schengen region. All for the sake of making the home of your dreams a reality. If you want to stay, you will be able to petition for citizenship after five years.

Suitable for families and retirees

Portugal is great for retirees or holiday property buyers who want to earn more while spending less. In general, the prices of lodging, food, and life are quite inexpensive. As a result, Portugal is one of the most cost-effective destinations in Europe. Furthermore, medical treatments in Portugal are of good quality and affordable.

The best weather and beaches in Europe

Because Portugal boasts some of the greatest beaches in the Mediterranean, Condé Nast Traveler and the World Travel Accolades have recognized various beaches and given them special awards. Summers are sunny, while winters are pleasant, with cool breezes and adequate rainfall to sustain the country’s unique flora and fauna.

The beauty of Portugal’s beach scene is that you can go for a walk down the beach and stop at restaurants and pubs when you want to get away from the people.

Living in Portugal: best places to choose

Lisbon

It is one of Europe’s safest cities and home to some of the greatest public schools in the country. Lisbon boasts first-rate infrastructure. Excellent transit, reasonable pricing, and lovely beaches and parks

The Lisbon real estate market has long attracted investment from firms and people from all over the world. Even though this is not a cheap location, there is always inexpensive accommodation available outside of the city core.

Algarve

There are several alternatives for investing in real estate in the Algarve, ranging from enormous, costly mansions to smaller, more inexpensive residences. The Algarve is a popular retirement destination, particularly for visitors from the United Kingdom and the United States, with about 300 days of daylight.

The Algarve is Portugal’s finest tourist location, with the greatest weather and warmest oceans. English is widely spoken here, and this location is also considered one of the safest in Portugal. There are public and private schools in the Algarve, as well as foreign schools.

Porto

Porto is one of our favorite cities in Portugal and one of the most beautiful places to live in the country. Porto is located on the banks of the Douro River, 280 kilometers north of Lisbon. It’s a wise investment, as the city has 220 days of sunlight every year, hence the cost of living is lower than in Lisbon. The city boasts a low crime rate and excellent infrastructure, including efficient transit and clean parks. Porto has always attracted foreigners and has a sizable international community.

Alentejo

Alentejo is an excellent option for the Algarve, Porto, and Lisbon, where costs have risen dramatically. Everything you’d find in the Algarve is available in the Alentejo, but it’s better since the region isn’t overrun with tourists. The Alentejo contains the magnificent coastline of the Algarve as well as desert places where modest agricultural life is the norm.

Cascais

There is a reason why it is one of the most expensive regions in Portugal to buy a property. The hub is bustling all year, with high-quality restaurants and stores, natural beauty, a clean park, and high-quality public schools. As a result, this is the finest environment to raise a family. 

Cascais is a hidden treasure if you decide to live in Portugal with significant historical value. This Portuguese Riviera city features 30 kilometers of coastline and some of the country’s top beaches. The city boasts well-funded infrastructure, such as attractive public transit, as a result of its high IMI.

What are the prices of Portuguese property?

Portugal’s real estate market is expanding. The pandemic, however, made the prices of living property in Portugal increase 6.32 percent to a median price of 1,144 euros per square meter in 2020, suggesting that the Portuguese real estate industry is constantly rising. However, it decreased significantly throughout the pandemic, and despite the large increase, it was still 11.16 percent lower than the previous year. Prices are predicted to surge after COVID-19 and then revert to pre-COVID-19 levels. Let’s take a look at how growth differs by area.

Metropolitan Lisbon: increased 5.83 percent to 1,507 euros per square meter on average.

Central Portugal: an increase of 3.87 percent to an average price of 833 euros per square meter.

Northern Portugal: up 6.54 percent to 994 euros per square meter on average.

Algarve: an increase of 7.28 percent to an average price of 1,562 euros per square meter.

Alentejo: increased 2.84 percent to 833 euros per square meter on average.

Madeira: Prices have risen 2.55 percent to an average of 1,168 euros per square meter.

Azores: up 3.41 percent to 940 euros per square meter on average.

Are there any drawbacks to owning a house in Portugal?

There are, but not many:

  • the majority of homes in Portugal lack central heating;
  • purchasing property in Portugal may take longer than planned. It is because of extensive bureaucracy, that is why things are delayed and sometimes ineffective.

Despite these 2 points, there are more benefits of living in Portugal, such as:

  • stable investments as Portugal has a large rental market;
  • it is possible to qualify for a Portuguese Golden Visa, with the option of attaining residency and citizenship after six years;
  • in comparison to other European nations, Portugal has a warm climate and a low cost of living;
  • the Global Finance magazine named Portugal one of the safest countries in the world in 2019;
  • there are high-quality education, and healthcare services, and a large number of English speakers.

The final note

For many foreigners, the idea of moving to Portugal for a living has been a popular one. It has become the most well-known coastline in Europe. The value of Portugal’s real estate market is increasing across the country. If you qualify for a Portuguese Golden Visa, purchasing a house might provide you with permanent residency or citizenship.

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Get in touch

Dasha Ponomarenko
Analyst / Customer Manager

Market Analytics

Real Estate Prices in Lisbon: Twice the National Average

According to data from the National Institute of Statistics (INE), the average cost per square meter of housing in Portugal reached €1,644 in the first quarter of this year. In Lisbon, the most expensive municipality in the country, housing prices have significantly increased and now exceed the national average by...

Read more...

Agricultural Lands: A New Target for Real Estate Investors

The agroforestry sector in Portugal is currently undergoing a significant transformation through a process termed “financial integration.” This sector is attracting considerable attention from investment funds, primarily due to its high yields. Real estate agencies are closely monitoring this trend as it presents new opportunities for investment. According to Araújo,...

Read more...

Portuguese Property Market Continues Upward Trend Amid Regional Disparities: May 2024 Bank Appraisal Report Highlights Investor Opportunities and Risks

The latest bank appraisals for May 2024 indicate continued growth in the Portuguese property market, with median values for both apartments and houses showing a steady increase. This is particularly evident in regions such as Greater Lisbon, where appraisal values have maintained a consistent upward trajectory. The data suggests that...

Read more...

Portuguese Construction Sector Shows Robust Growth in April 2024: Opportunities and Challenges for Real Estate Investors

In April 2024, the Portuguese construction sector exhibited noteworthy growth, reflecting positive trends that could significantly influence investment decisions in the property market. Key highlights from the report include: Conclusion for Real Estate Investors For real estate investors looking to enter or expand their presence in the Portuguese market, these...

Read more...

Portuguese New Housing Construction Costs Rise by 3.4% Amidst Surge in Labor Expenses and Material Price Fluctuations in April 2024

The April 2024 report on the Index of Construction Costs for New Housing (ICCHN) in Portugal provides crucial insights into the cost dynamics affecting new residential developments. Overall Construction Costs: Material Costs: Labor Costs: For real estate investors considering the Portuguese property market, these trends present both challenges and opportunities:...

Read more...

Portuguese Construction Sector Shows Resilience with 3% Growth in March 2024 Amid Market Challenges

The Portuguese construction sector exhibited a robust performance in March 2024, recording a year-on-year growth of 3.0% in production. Despite a slight deceleration from February’s figures, this consistent growth underscores the sector’s resilience and potential for sustained investment opportunities. Key Highlights: Conclusion for Real Estate Investors: For real estate investors...

Read more...

Tourism Sector Shows Strong Growth in Early 2024

Based on the tourism activity data for February 2024, the Portuguese property market, particularly in the tourist accommodation sector, exhibits robust growth and resilience, making it an attractive prospect for real estate investors. The sector witnessed a significant increase in guests (+7.0%) and overnight stays (+6.4%) compared to the previous...

Read more...

Price Growth Continues Amid Declining Transaction Volumes

The latest data shows that in 2023, the Portuguese real estate market demonstrated resilience with a continued increase in house prices, although the volume of transactions showed a significant decline. The House Price Index (HPI) observed an annual growth of 8.2%, albeit at a slower pace compared to the previous...

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FAQ

Investment opportunities

What kind of properties do you offer?
  1. Properties under development for buyers with patience to benefit from the price appreciation after the project’s completion.

     

  2. We offer land plots for residential and commercial use to those who want to maximize their profits from the full cycle of value-adding activity.

     

  3. Commercial properties are for those who bet on more stable and long-lasting relationships with corporate tenants.

     

  4. Income houses for investors looking for steady income streams from residential property tenants.
How do you provide the investment opportunities?

We offer personalized investment opportunities to our investors through a tailored investment newsletter. Each newsletter is customized to match the investor’s specific budget and aligns with their unique investment strategy.

What are the criteria for evaluating income house investment opportunities?
  1. Growth Markets: We identify areas experiencing robust economic activities, such as job creation, population increase, and rising GDP. Infrastructure projects like new transportation systems, schools, and hospitals indicate a region’s potential for growth, attracting more residents and boosting the rental market.

     

  2. Positive Cash Flow: The property should generate rental income that not only covers all operating expenses (mortgage payments, property taxes, insurance, maintenance, and management fees) but also leaves a profit. Securing loans with low-interest rates and reasonable terms can enhance cash flow.

     

  3. Appreciation Potential: Properties in neighborhoods with growth potential or undergoing revitalization are likely to appreciate in value. The condition of the property and the potential for improvements (renovations, additions) also play a crucial role in its future value increase.

     

  4. Turnkey and Rent-Ready: We choose properties that require little to no refurbishment before they can be rented out. This ensures a quicker start to income generation. Properties should also meet all local building codes and regulations and have passed necessary inspections to avoid future legal issues.

     

  5. At or Below Fair Market Value: We conduct a comparative market analysis that helps assess the investment property’s value by comparing it to similar properties in the area. We identify motivated sellers or properties that have been on the market for a long time and may offer negotiation leverage, allowing purchases below market value.

     

  6. Risk Management: We evaluate potential risks, including market downturns, property damage, or prolonged vacancies, and devise strategies to mitigate these risks. This may involve insurance, reserve funds, or diversifying investment portfolio.

     

  7. Legal and Tax Implications: Fully understand the legalities of property ownership and management, including landlord-tenant laws and local regulations. Awareness of property taxes and potential tax benefits (deductions, depreciation) is crucial for financial planning and compliance.

     

  8. Exit Strategy: We develop a clear understanding of investors’ end goals (e.g., long-term rental income, property flipping). This strategy informs all decisions, from property selection to financing and management.
What are the criteria for evaluating land plot investment opportunities?
  1. Location and Zoning: The value of land is significantly influenced by its location and the zoning regulations governing what can be built on it. We look only for prime locations or areas poised for future development. Zoning determines the type of development allowed, and we aim for residential and commercial types.

     

  2. Growth Potential: We choose land plots in areas with strong growth indicators, such as population growth, economic development, and infrastructure projects, which suggest future demand for property.

     

  3. Accessibility and Utilities: We pick land with good access to roads, public transport, and essential utilities (water, electricity, sewage), as it is more valuable and easier to develop.

     

  4. Topography: The physical characteristics of the plot, including its topography and soil quality, affect its usability and potential development costs. We prefer flat land or land with gentle slopes that is generally less expensive to develop than hilly or flood-prone land.

     

  5. Environmental Restrictions and Easements: We are aware of any environmental protections or legal easements that could restrict the development or use of the land. This includes protected habitats, wetlands, or historical sites. We carefully choose land plots without anything forementioned.

     

  6. Future Development Plans: Information on planned infrastructure or commercial projects in the area can significantly impact the future value of land. We gather and analyze this kind of information to make meaningful decisions.

     

  7. Cost vs. Value: We carefully evaluate the purchase price against the potential for increased value. Land for development or likely to be rezoned for higher-value uses can offer significant returns.

     

  8. Exit Strategy: We understand how it’s better for investors to profit from the land purchase, whether by selling after appreciation or developing the land.
What are the criteria for evaluating new build investment opportunities?
  1. Builder Reputation: We investigate the builder’s track record, quality of construction, and reliability. Established builders with a history of delivering high-quality projects on time are preferable.

     

  2. Location: The property’s location is crucial. Look for new builds in areas with strong demand for housing, good schools, amenities, and transport links, which can drive up property values.

     

  3. Price Comparison: We compare the price of the new build with existing properties in the area to ensure you’re paying a fair price. New builds often come at a premium, so we ensure the extra cost is justified by the benefits.

     

  4. Warranty: We choose new builds that come with warranties (like a 10-year structural warranty). These can add value and reduce maintenance costs in the early years.

     

  5. Energy Efficiency: We choose new builds with high energy efficiency ratings and modern technical features that can be more attractive to tenants and buyers, potentially lowering operating costs and increasing attractiveness.

     

  6. Potential for Appreciation: We pick properties with the potential for appreciation based on location, quality, and market dynamics. Properties in areas expected to see growth in infrastructure and amenities offer higher appreciation potential and are on our radar.

     

  7. Rental Yield: We calculate the potential rental yield and compare it with other investments. Only properties with “working” math are on our list because this eases the execution of the exit strategy and may be beneficial for investors willing to get the “passive” rental income.

     

  8. Financing and Incentives: We look into financing options and any incentives offered by builders or their partnering banks, which can affect the investment’s affordability and attractiveness for investors.

     

  9. Exit Strategy: We choose properties that provide a clear and easily implemented strategy for maximizing return on investment, whether through long-term rental income or selling after appreciation (or both, by leasing while selling).
  10.  
What are the criteria for evaluating commercial property investment opportunities?
  1. Location: Prime location is crucial for commercial properties. We look for areas with high foot traffic, good accessibility, and proximity to amenities if it’s retail or a desirable business district for office spaces, or a touristic hot spot if we’re talking about hotels.

     

  2. Tenant Quality: We carefully study the current situation with tenants and analyze our possibilities. Properties that can be leased to reliable, long-term tenants (e.g., national chains) offer more stable income streams and are primarily on our radar.

     

  3. Market Demand and Vacancy Rates: We investigate the local commercial real estate market for demand trends and vacancy rates. Lower vacancy rates and higher demand indicate a healthier market – and that’s exactly what we are looking for.

     

  4. Economic and Area Development: We look into the economic health of the area and any planned developments. Growth indicators include new infrastructure projects, population growth, and employment rates.

     

  5. Property Condition and Age: We evaluate the property’s condition and age, as these will impact maintenance costs and the attractiveness to tenants. Newer or well-maintained properties are often more desirable but we also consider other options if the math works.

     

  6. Zoning and Regulations: We ensure the property complies with local zoning laws and is not subject to unfavorable regulations that could affect its use or value.

     

  7. Financial Performance: We analyze the property’s financials, including income (rental income), expenses (operating costs), and net operating income (NOI). We look for properties with a strong NOI and potential for growth.

     

  8. Financing: We understand the financing options and conditions. Commercial properties often require larger down payments and have higher interest rates than residential properties, so the finance product should be considered carefully.

     

  9. Exit Strategy: Whether it’s selling after appreciation, refinancing, or holding long-term for steady income, we ensure the property aligns with investors’ investment goals and timeline.
  10.  

Investment newsletter

What is your investment newsletter?

This is a tailored investment proposal newsletter that we send to each client who’s in the process of capital allocation. Usually, we send one investment opportunity each week or two (depending on the complexity of the request). To stop receiving it, you may just ask the customer service manager.

How does your investment newsletter look like?

We send a pdf file to any type of communication channel you preffer (email, whatsapp, etc.) with the following information that is well enough to consider if this property fits your interests:

  1. Property description
  2. Location description
  3. Market analytics
  4. Calculations breakdown
  5. Investment terms of the acquisition

Investment allocation

Can I participate in a deal with only a part of capital required to acquire the property?

Yes, you can. For this purpose, we propose certain investment opportunities to clients with similar investment preferences. We manage to form a sort of co-investment group where the participants may make a co-investment agreement and become partner-investors.

Who may be my partner-investors?
All our investors share our vision for transparency and “fair play” business ethics, and among them, we choose who may be a good fit as partner-investors based on similar investment preferences and goals.
What is the minimum investment amount?

The minimum real estate investment amount required in a co-investment scheme is € 250,000. If you are eager to acquire property on your own, the minimum amount should be € 1 million.

Holding of the investment

Do I need to do anything after investing?

No, you will only need to make the investment, and we will handle all the rest – from value-adding activities to selling the property or managing it to obtain passive income.

Do you provide any reports?
Yes, we provide monthly reports regarding the investment status with detailed information, and of course, our customer service is here to answer all the questions you may have on a daily basis.
Do you guarantee any return on investment?

No. And if some companies do – be careful. We provide you with viable and very probable scenarios how we consider things will go, which may, in fact, not happen. And this is something to remember – no one can predict the future.

Is it safe to invest in properties you provide?
Maybe the best thing many consider real estate’s main advantage is that the price almost can’t go to zero. Can the property market fall? Yes. Can the “black swan” fly by? Yes. Can we do our best to keep your investment safe? Yes, and so we do.

Quick Facts

  • Founded in 2020

  • Experienced management of 20+ years in real estate

  • 50+ HNW clients trust us with their real estate investments in Portugal

  • Operating throughout the country

Mission

We operate a real estate company dedicated to enhancing our clients’ wealth through investments in properties with high profit potential and low risk.

Investors working with us aim to preserve their capital while earning returns significantly above long-term inflation rates, through property appreciation and/or obtaining passive income.

Management

Why We

  • We provide weekly offers to our client base on an individual basis – we know exactly who wants what.

  • We offer only properties with high potential and moderate risk.

  • We provide detailed analytics for each investment opportunity.

  • We do thorough due diligence on each and every property.

  • We accompany you throughout the investment – from studying the potential deal to the exit.

  • We partner only with the best service providers in every local market.

  • Oftentimes, we invest along with our clients.
  •  

Investment Terms

  • Minimum investment – € 250,000
  • Holding period – 1-3 years
  • Target capital growth – 20-40% (10-30% yearly)
  • Target passive income yield – 5% and more

Our Fees

Finding Fee
€1500 This fee is paid when the investor makes an individual request for a property. It does not apply to the properties we provide in our proposal list.
Deal Structuring Fee
0,1 — 0,5% This fee is paid if the deal needs a tailored investment vehicle, usually an LLC, for tax efficiency, liability protection, and transparency between partners. This fee does not apply if the deal goes straightforward without any such structuring.
Value-Adding Activities Management Fee
10% This fee is calculated as part of the total construction (reconstruction, refurbishment) cost.
Performance Fee
10 — 15% This fee is calculated as part of the gross profit. It is paid if value-adding activities were performed or/and managed by us. It is calculated based on the difference between the total investment cost and the current appraisal of the property made by an independent professional.
Exit Fee
5% It is the same as the brokerage fee when selling the property. This fee does not apply if the investor decides to keep the property for use or lease.