Property Market Portugal
The last couple of years have presented a strong return for the property market in Portugal and Algarve was no exception. With 300 days of sunshine, stunning coastal scenery, a reasonable price of living and a vibrant local culture, the area remains a popular spot for both permanent expats and investors.
One of the key takeaways from 2017 was investors’ desire to acquire property in areas they identify as safe. This is a developing concern as security is threatened by uncertain political change in all corners of the globe. Luckily, the property market in Portugal and villas in the Algarve consistently meet this need, providing buyers a safe, financially stable high-end resort lifestyle.
We have seen several large resort projects flourish in the past two years as wealthy investors recognise the potential of the property market in Portugal and see how favourably the price of living compares to similar European hotspots.
The impact of the Golden Visa (introduced in 2012) and the NHR (introduced in 2009) should not be underestimated. The former gives non-EU nationals residential status in return for investment and continues to attract buyers from Asia and the Middle East, while the tax benefits from the NHR are seeing more European buyers choose the property market Portugal. Both are expected to remain in place in the foreseeable future, bolstering an already strong market.
Of course, 2017 was the year when ‘Brexit’ was top of minds across Europe. While the ongoing negotiations have left UK buyers less certain about investing, this has led to growth from other European countries. We continue to see high interest in luxury property in the Algarve from Scandinavia, Italy and particularly Germany and France. In short, while Brexit uncertainty continues, we don’t expect it to impinge on the property market in Portugal in the forthcoming years.
It’s not just investors who should be feeling confident about the year ahead, property owners will also continue to see the benefits of 2017 well into the next few years. The Algarve represented 50% of Portugal’s real estate profit last year, and remains one of the country’s top three property investment markets, with demand continuing to outstrip supply.
Homeowners looking to sell are in an excellent position, and we predict values will stabilise this year after a slight rise in 2017. The area is also a popular holiday destination for visitors from Portugal, Europe and beyond, which is good news for rental income. We saw a lot of new rental customers in 2017, and expect to see them return now that they have experienced what the Algarve has to offer.
In short, 2018 is shaping up to be an exciting year, whether you are looking for an exclusive property in Portugal, or hoping to enjoy the benefits of your existing home, to make the most of the property market in Portugal.