Published on 30th December 2019
Investing in Porto means making a safe and profitable investment. At the beginning of the century, the Invicta city became a center for real estate investments, a profitable business in which money generates more money. And according to Forbes, Porto has been elected as one of the Best European Cities to Invest in for 2020.
Between 2000 and 2016, over one billion euros were invested in real estate in Great Porto. Profits compete with other major cities of the Iberian Peninsula, such as Lisbon, Madrid and Barcelona.
According to a study from Cushman & Wakefield, the most profitable investments are for commerce, services, offices, local tourist accommodation, as well as for hotels and student residences.
Another factor that invites us to invest in Porto is the value practiced in the rental market. The rents practiced in Porto are lower than those required in other Iberian cities. We believe that this quality-price factor makes Porto a unique destination for real estate investment.
In 2016, 513 properties were transacted in the Historic Centre of Porto, for a total value of 154 million euros. According to Confidencial Imobiliário (Ci), real estate investment increased by 64% over the previous year, and the price of houses by 12.9%.
- Why should you buy a building in Portugal?
- Golden Visa investor reaches Portuguese Citizenship
- The Portuguese economy is showing confidence to investors
- Portugal will continue being a partner with or without Brexit
So here’s how Porto shows such resilience in the market and attracts investors and entrepreneurs from around the world:
Porto is well linked as one of Europe’s oldest cities. The region has a 36km metro network and an airport providing continental and intercontinental flights and high-speed trains linking Porto with Lisbon.
Good quality of life
Living costs, social environment, and a warm mediterranean climate lure entrepreneurs and buyers from around the world. With a diverse cultural bid, Porto is considered a safe and welcoming destination.
The increasing of international tourists in low and high season in recent years has led to Porto’s booming economy. In Porto, international tourists assemble to explore the rich historic centre of the city, cultural offerings and lively atmosphere, which granted the city the European Best Destination Award three times.
Real estate and Urban renewal
Latterly, Porto has benefited from major urban development and rehabilitation. Between 2014 and 2018, one million square meters of real estate projects were approved and licensed in the city. The Porto City Council has played an active role in creating new initiatives, such as designating new urban renewal areas (URA’s), which could benefit from tax benefits. While subject to some variations, foreign direct investment in northern Portugal has consistently grown at an average annual pace of 9.1% over the past 10 years (11.4% over the last 5 years). This increase is higher than the one seen throughout the country (6.6%) as well as in the member states of the EU (5.3%).
Last year Lisbon was the elected by Forbes. However, with significant growth throughout 2019, it is estimated that good house business is harder to come by. The next best place to invest is in Porto, where house prices are still 30% lower than in Lisbon (despite a 15% increase in sales).
The magazine also writes that Portugal has benefited from programs such as the golden visa, for becoming an attractive country for investors.
About Portugal Homes
PortugalHomes.com specializes in investments through Real Estate and Golden Visa. We help buyers find the right property overseas, whether it be for Golden Visa, NHR, Investment or simply a place in the sun. Our properties are selected with great thought in mind to give our clients the best opportunities. We offer the complete service from introducing them to the Legal Representatives, Currency Exchange, Mortgage Advisors, Property Management, Rental and Furniture Packages along with making sure all our staff are trained to fully understand the buying process and taxes for every scenario. Portugal Homes provides the complete service to anyone looking to buy a new or resale property overseas for holiday use or as a short or long-term investment.
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