Portugal named one of the best locations in Europe for property investment.
An old favourite withi international property purchasers, there’s something about the laid-back culture, Mediterranean climate and stunning stretches of coastline which makes Portugal a dream location for owning a holiday home. Now, with research by international currency experts World First placing Portugal third in a list of the highest rental returns in Europe, there’s more than lifestyle justifications for investing in property in Portugal.
Currently in the UK, the average income for buy-to-let property is around 4.3% p.a. whilst Portugal is currently offering around 6.29% p.a. With additional restrictions on owning buy-to-let property being enforced in the UK, overseas property ownership is providing an exciting alternative.
Edward Hardy, Market Analyst at World First, has commented on the industry saying, “With the recent changes to stamp duty tax for buy-to-let landlords, UK property investors looking to add to their portfolio might want to consider looking further afield to get the best returns.”
Whilst Portugal grows in popularity as a tourist destination and develops a reputation as a European safe haven, the impressive yields are rising steadily in the country.
The March RICS/Ci report highlights that solid demand from new buyers in Lisbon, Porto and The Algarve has been a significant driving force in the increase of Portugal’s property sales over the past 3 months. This growth in demand has also served to push up property prices, with a 3-4% rise seen in the Algarve over the past 12 months, and a further 2.5% rise predicted in the coming year.
Leading from the capital
In 2015 property prices in the historic centre of Lisbon soared 22.3%; backed by a significant increase in tourism and urban regeneration. In the past decade Lisbon has seen over 8,000 property transactions, with approximately half taking place between 2014 and 2015. Last year alone saw 2,199 property transactions recorded in the city, totalling €709million.
Those looking to invest in property in Lisbon have a terrific opportunity to take advantage of Portugal’s growing popularity, an increasing demand for rental accommodation, impressive capital appreciation potential and some of the best rental returns in all of Europe.
Benfica Stadium, Lisbon
Our latest investment opportunity in Lisbon, Benfica Stadium is a brand new development in the very heart of the city. The luxury 4* apart-hotel contains a variety of studio, one and two bedroom apartments in an exceptional location beside the Estádio da Luz.
The new-build development exudes modernity and offers a variety of outstanding facilities and services. All apartments offer a guaranteed rental income of 4% per year for 5 years, and allow investors 10 days personal use per annum – with no restrictions on dates. There are no additional, hidden or ongoing charges; ensuring ownership is hassle-free, whilst simultaneously providing a lucrative income stream.