Portugal’s property market is finally looking up – time to invest?

portugal-property-market

Portugal is literally located at the center of the world – on the UTC (GMT) timeline and a short flight from European capitals and the Americas. It also boasts long sandy beaches, golden plains and mountains, and cities with centuries of heritage.

Portugal’s house prices continue to increase countrywide due to recent strong economic growth. House prices experienced a dry spell for three years until 2014 when prices finally picked up and started to recover. By October 2016, prices rose by 3.84% from 2015.

Properties in Lisbon cost an average of US$344 per square foot (sq. ft.) with rental yields ranging from 5.4% to 6.2%, which are great yields for a European capital city. Smaller apartments tend to earn more than larger rentals. This can be attributed to the increasing number of tourists coming in all throughout the year. According to Global Property Guide, Lisbon’s rental yields are the highest in Europe.

In Porto, properties cost US$203 per sq. ft. with gross rental yields of 5.3%. In Coimbra, house prices are US$165 per sq. ft. with rental yields ranging from 5.13% to 5.93%. In Braga, houses cost US$104 per sq. ft. with rental yields between 5.98% and 6.77%.

There are no restrictions when a non-Portuguese own property in Portugal and transaction costs are generally low. The government grants a 5-year residency permit to non-EU citizens and golden visas are available to those who buy a minimum of US$574,475 worth of property. The residency permit allows holders to work or study and to travel in the Schengen Area. After five years, holders can apply for permanent residency.

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