Besides factors like immediate profit, rental income, or housing appreciation, in 2019, several economical reasons also motivated worldwide investors to purchase real estate overseas:
The Trump Administration;
The trade war between the US and China that led Chinese buyers to seek other investment destinations;
The growing interest in countries like Spain and Portugal that offer lower property prices and good quality of life.
Geopolitical concerns related to Brexit slowed down Eurozone’s growth (from 50% in 2018 to 37% in 2019), rising trade tensions and decreasing short-term investment plans (from 35% in 2018 to 27% in 2019). Despite this downfall, Europe still is the world’s most attractive region to establish business operations and for investing in real estate overseas. Investors’ perception towards Portugal follows the same pattern, but Portugal’s attractiveness remains strong (52%) and the number of investors interested in purchasing in Portugal is among the highest in Portugal - totaling 25%. Brexit is equally having a positive impact on Spain as a country, thanks to foreign buyer interest rising significantly there.
The U.S has also seen an overall decrease in investment interest, particularly from the Chinese market due to trade policies implemented by the Trump Administration. Studies indicate that this market’s interest has shifted to countries like Canada and the UK.
Regarding Portugal’s situation, the Lisbon city continues to be at the top 10 targets for real estate investments in 2020. However, the perception of the country’s attractiveness among investors is gradually shifting, as the surrounding cities are competing for the deserved attention. This shift is emphasized by established investors, for whom these regions are starting to look more promising.
Portugal is also nurturing a culture of innovation that opens doors to the country’s digital transformation. More and more businesses are being established in the country because there is a higher value-for-money for developments in Lisbon than in other major cities, as well as cheaper office and house prices, compared to other European cities. As a result, investors realize that there are still several types of real estate investments available in sectors such as Hotels, Residential and Retail.
If you’re looking to invest in these sectors, you will want to consider getting the return of your investment. How much profit a building generates depends on its size, income and how much money you have invested in the property. Property management will also be an intensive process if the property has more than four units. At Portugal Homes, we can provide you with market reports on the property type and potential returns, through our After Sales Department, which is solely committed to satisfying clients’ needs post-purchase, ensuring any and every matter is addressed.
Portugal Homes has very experienced and knowledgeable professionals working with some of the most established and reputable developers Portugal has to offer. Our vast experience allows us to guide you through the best investment choices.
Whether you want a holiday home or an investment property, we select the best units for your profile and take care of all the process from start to finish. Even after the sale! Our After Sales services assume the responsibility of furnishing your property at your taste, taking care of the property in your absence, managing the rentals if you wish to rent your property when you’re not in Portugal and so much more!
To learn more about the Portuguese Non-Habitual Resident Program and our After Sales services, please fill the form below.
So far it has been great. Simon is very knowledgeable and friendly.Loay El Abiad - Investor from Saudi Arabia
It's fantastic how Ryan had complete knowledge regarding Lisbon and dealt with us in a great manner.Akbar Ali - Investor from Pakistan
Ryan is very professional, but also friendly and knowledgeable about the Golden Visa market. He was also flexible as travelled from the Algarve to meet me in Lisbon to stand in for 1 colleague at short notice.Investor from UK
Portugal Homes did a great job keeping me up to date with progress on my new home construction purchase by providing regular and comprehensive reports. This helped to ease anxieties about doing a home purchase in the midst of a global pandemic.Investor from the USA
Although through Zoom, we established great confidence in George's integrity. [It was] important for us to have confidence in the staff's ability to feel aligned in views.Donald Collie from Australia
The process was very quick and clear. I got all the information I needed in the first hour. The experience was perfect.Tomoko Inoue from Japan