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Investing in real estate in Portugal in 2024

Portugal’s real estate market is increasingly attractive to global investors, thanks to its stability and growth potential. Key areas like Lisbon, Porto, and the Algarve have seen property values rise, drawing international buyers seeking profitable investments.

Real estate market scenario in Portugal

Excellent real estate market

Despite global economic challenges, the Portuguese real estate market has performed exceptionally well. The commercial investment sector has broken records, with 80% of investment volume coming from international investors. The residential market has also hit all-time highs in property sales and values.

Record in real estate sales

2024 is set to be a historic year for Portuguese real estate, with an estimated sales volume of 30,000 to 31,000 million euros and around 168,000 properties sold. This surge in sales underscores strong demand from both local and international investors, cementing Portugal’s attractiveness on the global stage.

A comprehensive guide to investing in real estate in Portugal

Investment process in Portugal

Investing in Portuguese real estate involves several steps: property search, legal due diligence, and navigating the transaction process. With lower property prices compared to other Western European countries, Portugal is an appealing investment option.

Financing and accessibility in Portugal

Portugal offers historically low mortgage interest rates, making property purchases more accessible to investors. The introduction of direct flights from the United States to Faro Airport is expected to boost American investment and tourism in the Algarve.

Prospects for 2024 and American investment in Portugal

New investment opportunities in Lisbon and Porto

New housing projects are anticipated in Lisbon and Porto, presenting attractive investment opportunities due to competitive prices and steady demand.

Increase in US investment in Portugal

There has been a significant increase in US investment in Portugal, highlighting the country’s growing status as a prime location for international real estate investment.

In-depth analysis and information of the real estate market in Portugal

Investing in real estate in Portugal

Portugal’s real estate market offers diverse investment opportunities, including residential, commercial, and luxury properties. The luxury residential sectors in the Algarve and Porto are particularly popular among high-net-worth individuals.

Demographic changes and buyer profiles

The market is witnessing a demographic shift with increasing interest from young investors and digital nomads attracted by Portugal’s lifestyle, climate, and digital infrastructure.

Rental market dynamics

Urban centers in Portugal present unique opportunities in the rental market, driven by high demand for both short and long-term rentals. This is partly due to Portugal’s rising popularity as a tourist destination and its appeal to expatriates and remote workers.

Sustainable and green investments

There’s a growing trend towards sustainable and green investments in the Portuguese real estate market. New projects are incorporating sustainability criteria, and investors are increasingly interested in properties that meet environmental, social, and governance (ESG) standards.

Economic indicators and market stability

Portugal’s economy has shown strong growth, spurred by a rebound in tourism and increased service exports, which have positively influenced the real estate market. However, challenges such as global supply chain disruptions and energy market fluctuations have impacted economic stability and growth prospects.

The Portuguese real estate market in 2024: An exceptional investment opportunity

Investing in real estate in Portugal is a solid, dynamic, and attractive idea. With an extensive property portfolio, favorable investment conditions, and a growing market, coupled with Portugal’s unique lifestyle and rich cultural offerings, this country is an ideal choice for those looking to capitalize on real estate opportunities in Europe.

Looking to invest? Look no further – we can help you find the perfect home in Portugal. Contact us now for more information.

Sérgio FagundesMortgage Adviser

Born in Germany and raised in Portugal, Sérgio has more than 20 years' experience in diverse areas of the Portuguese financial world. Now a qualified mortgage broker in Portugal, he can expertly guide you to the right mortgage product. Sérgio lives in the Algarve, speaks English, German and is fluent in Portuguese.

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Mortgages taken out in currencies other than the currency in which you earn are considered Foreign Currency Mortgages. Changes in the exchange rate may therefore increase the equivalent value of your debt. Under the Mortgage Law 5/2019 banks in Spain have introduced mechanisms to protect consumers from exchange-rate risk. For more information, please speak to your broker.

Mortgage Direct, S.L. is a company registered in the Registro de Intermediarios de Crédito Inmobiliario del BdE with the nº D108.

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