Where to invest in real estate in Portugal? As a real estate investor, Portugal is a country that should be on your radar. Situated on the Iberian Peninsula, Portugal is a vibrant country with a rich history and culture. It is also home to a growing real estate market attracting investors worldwide. In this article, we will guide you through the top 5 places to consider investing in real estate in Portugal in 2023.
Introduction to Investing in Real Estate in Portugal
Portugal has been attracting much attention from overseas investors in recent years, particularly those looking for a more affordable and relaxed lifestyle. With its sunny climate, beautiful beaches, and rich culture, it’s no wonder that Portugal has become one of the most popular destinations for foreign investors. The real estate market in Portugal has also been growing steadily, with prices increasing steadily over the past few years. In 2020, despite the pandemic, the Portuguese real estate market posted its best numbers in over a decade.
Why Portugal is a Great Place to Invest in Real Estate
Portugal’s real estate market has shown resilience in the face of economic challenges. It has a stable political environment, a low crime rate, and a thriving tourism industry. Portugal is also a member of the European Union, which provides investors with a level of security and transparency regarding legal and regulatory frameworks. Another factor that makes Portugal an attractive destination for real estate investment is its Golden Visa program. This program offers residency to non-EU citizens who invest in real estate in Portugal.
The Current State of the Real Estate Market in Portugal
The Portuguese real estate market has seen steady growth in recent years. According to data from the National Institute of Statistics (INE), the housing market in Portugal has grown by an average of 5% per year since 2014. Despite the pandemic, the real estate market in Portugal has remained active, with strong demand for high-quality properties in popular destinations.
Factors to Consider When Choosing Where to Invest in Real Estate in Portugal
Choosing where to invest in real estate in Portugal can be daunting, especially if you are unfamiliar with the country. Some factors to consider when choosing a location include the local economy, the rental market, the quality of life, and the potential for capital appreciation. It’s also important to consider the legal and regulatory frameworks in place in each region, as well as any tax implications.
Top 5 Places to Consider Investing in Real Estate in Portugal in 2023
Madeira – The Island Destination
Madeira Island, the Pearl of the Atlantic, exudes a unique allure that makes it an exceptional place to live. The island is globally renowned for its awe-inspiring natural beauty, with its dramatic landscapes consisting of towering mountains, lush subtropical forests, and stunning coastlines that offer spectacular vistas at every turn. The famous Laurissilva Forest, a UNESCO World Heritage site, invites nature enthusiasts for exciting trails, and the island’s terraced vineyards, from which the world-famous Madeira wine is produced, add a distinctive charm to the scenery.
Madeira’s capital, Funchal, is a bustling city steeped in history and culture, with its mosaic pavements, botanic gardens, museums, and a vibrant market. The local culinary delights, from ‘espada’ fish to ‘bolo do caco’ bread, provide an exciting gastronomic journey. Yet, the warm-hearted Madeirans, with their friendly smiles and welcoming nature, truly make the island feel like home. Combining a mild year-round climate, a high standard of living, and a host of cultural and recreational activities, living on Madeira Island is an invitation to a lifetime of enchantment and adventure.
Madeira is a popular destination for tourists, and there is a strong demand for high-quality properties in the area. The real estate market in Madeira has been growing steadily in recent years, with prices increasing by an average of 3% per year since 2015.
Porto Santo – The Peaceful Island
Porto Santo Island, a sparkling gem in the Madeira archipelago, embodies paradisiacal living. Located in the vast expanse of the Atlantic Ocean, the island is famous for its stunning golden sand beach that stretches as far as the eye can see, offering a peaceful retreat to enjoy the warm sun and the calming lullaby of the waves. The island’s tranquil charm is enhanced by the slow, relaxed pace of life, allowing residents to truly unwind and bask in the simple pleasures of island living.
Amid its natural beauty, Porto Santo is also home to a vibrant community where everyone knows each other, cultivating a warm, convivial atmosphere. Adding a zest of adventure, the island boasts beautiful hiking trails, golf courses, and water sports, offering ample opportunities for an active lifestyle. The historic town centre, dotted with quaint traditional houses, shops, and charming eateries serving delicious local cuisine, perfectly complements the picturesque tranquillity of the island. Living in Porto Santo Island is akin to residing on a never-ending vacation, where every day unfolds a new opportunity to experience serenity and joy. Porto Santo is a popular destination for retirees and those seeking a quieter lifestyle.
The real estate market in Porto Santo has been growing in recent years, with prices increasing by an average of 2.5% per year since 2015.
Castelo Branco – The City in the Mountains
Nestled in the heart of Portugal, Castelo Branco brims with an idyllic blend of historic charm and modern amenities, making it an exceptional place to call home. Breathtaking landscapes and intricate architectural marvels, such as the 13th-century castle, after which the city is named, paint a scenic backdrop for everyday life. Embrace the tranquil yet richly cultural lifestyle punctuated by the rhythmic chiming of cathedral bells and the refreshing aroma of freshly baked bread from local pastelarias. Cobblestone streets, which curve enticingly around meticulously maintained gardens like the lush Jardim do Paço Episcopal, are dotted with quaint cafes and stylish boutiques, infusing daily routines with simple pleasures. Boasting excellent schools, a thriving arts scene, and a strong sense of community, Castelo Branco offers a harmonious blend of the traditional and the contemporary. Its residents’ warm and welcoming nature further accentuates the city’s allure, fostering a sense of belonging from the moment you arrive.
The real estate market in Castelo Branco has been growing steadily in recent years, with prices increasing by an average of 4% per year since 2015.
Viseu – North’s Gem
The city of Viseu in central Portugal is a hidden treasure that offers its inhabitants an exceptional quality of life. Surrounded by undulating green hills and vineyards that produce the renowned Dão wine, Viseu is a harmonious blend of past and present. Its ancient origins are proudly displayed in the well-preserved medieval quarter, where narrow, cobbled lanes lead to the majestic Sé Cathedral and the Grão Vasco Museum, with its rich collection of Portuguese art. Modern Viseu sparkles with contemporary cultural life, from its bustling, boutique-lined shopping districts to vibrant annual events such as the Fair of São Mateus. The city offers excellent educational and healthcare systems, spacious parks, and a range of culinary delights from traditional Portuguese cuisine to international fare. Perhaps what most defines Viseu, however, is its sense of community; the locals are known for their warmth and hospitality, always ready to share a story or lend a helping hand. It’s a city where modern comforts meet history, and natural beauty is just a short stroll away, making Viseu a truly remarkable city.
The real estate market in Viseu has been growing steadily in recent years, with prices increasing by an average of 4.5% per year since 2015.
Coimbra – The University Town
Coimbra, seated majestically along the banks of the Mondego River in central Portugal, is a city that effortlessly combines tradition and innovation, making it a delightful place to reside. As a former capital of Portugal and a town steeped in history, Coimbra is a living museum, its skyline punctuated by the ancient University of Coimbra, a UNESCO World Heritage site and the oldest university in Portugal, offering panoramic views over the city. The old city’s cobbled streets, brimming with charming cafés and unique shops, wind their way down to the bustling downtown district, where modern culture and commerce thrive.
Nestled amidst beautiful parks, botanical gardens, and riverfront areas and blessed with a mild climate, Coimbra offers a high quality of life, where history and modernity converge harmoniously and every day unfolds a discovery. Notably, Coimbra is a city of knowledge, with a vibrant student population that infuses the city with energy, creativity, and a cosmopolitan feel. The city is often filled with the harmonious notes of Fado music, giving an enchanting rhythm to life in Coimbra.
The real estate market in Coimbra has been growing in recent years, with prices increasing by an average of 3% per year since 2015.
Conclusion
Portugal is a great place to invest in real estate, and there are many locations to choose from. Madeira, Porto Santo, Castelo Branco, Viseu, and Coimbra are all great options for investors looking to get in on the action in 2023. When choosing a location, it’s essential to consider factors such as the local economy, the rental market, the quality of life, and the potential for capital appreciation. You can find the perfect investment property in Portugal with the proper research and due diligence.
Miguel Pinto-Correia holds a Master Degree in International Economics and European Studies from ISEG – Lisbon School of Economics & Management and a Bachelor Degree in Economics from Nova School of Business and Economics. He is a permanent member of the Order of the Economists (Ordem dos Economistas)… Read more
