In 2018 the Portuguese real estate market is expected to experience a real boom. The tendency towards increase in prices is explained by the shortage of supply, decrease of unemployment rates and overall recovery of the local market.
According to the report prepared jointly by RICS and Confidencial Imobiliário, supply numbers of real estate in Portugal have further decreased, while demand has risen, and this trend continues for three months in a row resulting in the rise of housing prices. Meanwhile, the pace of inflation has weakened in Lisbon but maintained in Porto and Algarve.
It is worth mentioning that the demand growth became slower if compared to the May figures (16% against 36%).
The experts share the view that during the next 12 months house prices will increase by 3% per year and in the next 5 years the increase will amount to 5 %.
The Portuguese lettings market demonstrates a stable high performance: lessees are putting increasingly higher demands to leased property, while private sector owners, on the contrary, are more loyal in letting mansions, apartments and houses.
In general, the country’s real estate market shows signs of recovery. According to Ricardo Guimaraes, Director of Confidencial Imobiliário, the house prices are growing not only in the capital and major cities, as it was before, but in other parts of the country as well.
Furthermore, today Portugal has good conditions for further development of the country’s economy and real estate market due to reduction in unemployment, restoration of Portugal’s positions in the EU, raise in the consumers’ credit of trust.
Attraction of foreign capital to the country and, consequently, supporting Portugal’s economy – these are the results of the successful operation of the Portuguese residence permit by investment program (ARI, Golden Visa) launched in 2012. According to the official data, during 5 years 5 412 residence permits were issued for applicants from all around the world.
Acquisition of real estate in Portugal gives you an opportunity to take part in the government program that opens the door to Europe for the investors and allows them to enjoy the benefits available to the Europeans.
Advantages of the Portugal Golden Visa:
As you can see, investing in real estate on the Iberian Peninsula is the way to obtain the European residence permit and earn passive income from real property lease. In five years, real property may be more than profitable to sell, since the Portuguese tourism services market is developing, and house price per square meter is growing every year.