Portugal Real Estate Market and Values
The property market in Portugal experienced a significant increase in demand between 2000 and 2008, which led to developers working hard to meet the demand. However, with the global financial downturn in 2008, demand for properties decreased, leaving many newly-built properties available. Therefore, prices decreased and a strong opportunity for value was created and still exists, as the market corrects itself.
Our research indicates that the most desirable areas are:
- Lisbon – Portugal’s capital city
- Estoril Coast and Cascais region – offering a strong lifestyle focus
- Troia region – with a tropical atmosphere, only 40 km’s south of Lisbon
- Algarve region – Portugal’s main tourist region, thriving with high quality beaches and integrated resort communities
These areas offer buyers various features and the highest value for money:
- Prime developments close to the capital city of Lisbon
- Both Lisbon and the Estoril Coast/Cascais regions offer prime property developments, which to date have been the main focus for residence and citizenship investors in Portugal
- Seafront properties
- Despite the extensive coastline that the Algarve region offers, building restrictions and nature protection laws have prevented over-development, which generates higher value for the existing and approved projects due to a balance between supply and demand
- Integrated Master-Planned communities
- These usually have a golf course or community at their core, offering properties that cater to all types of owners and include locals, new residents, second home owners and vacationers. Both the Algarve and Troia region, alongside the Estoril Coast and Cascais regions, offer a good supply of planned communities
The interest from foreign buyers in these areas has increased exponentially since the Golden Residence Program was launched late in 2012. With the influx of foreign owners to these areas, the property values in Portugal are increasing. This also leads to a higher quality of design and build of planned communities, which in turn attracts further long term value.