Demand for premium real estate in Portugal is growing
In recent years, the real estate market in Portugal has shown excellent results. More and more investors are choosing the country for their capital investments, as the local sector attracts by comparatively low prices, good economic conditions, and excellent nature. Investment in prime real estate has grown in 2022 and analysts predict that this trend will continue in 2023.
Despite the global economic uncertainty and reduced investor activity, the real estate market in Portugal has managed to maintain stability even in such difficult conditions. The local sector performed well during the pandemic, was able to recover quickly, and is now continuing to develop ahead of the global recession.
Analysts see no signs of a correction in the local market, although some European countries, such as Finland and Sweden, have already experienced one. And it is the segment of premium properties that shows high stability. Growth can be observed in many regions, including the historic part of Lisbon, which was in decline for some time. At the same time, only for the first half of 2022 here recorded an increase in investment of 28%. Fuels investor interest in Portuguese luxury housing and the fact that the market remains short of supply. It is particularly evident in Lisbon. In turn, experts believe that the lack of sites will increase their prices.
In 2022, Portugal has become one of the most popular countries in Europe for moving. In 2021, about 100 thousand foreigners have chosen as their place of residence this state, and in 2022 the number of non-residents has reached 771 thousand people. And their number is increasing every month. Many foreigners prefer to invest in local real estate. This trend is expected to continue in the future.
The problem of shortage of supply in the country is not very acute yet, it rather increases the interest in the objects. In addition, soon, the local market should see the completion of several projects with premium real estate, which will be able to satisfy the desire for the comfort of even the most demanding customers. The construction of new facilities is also increasing.
The Portuguese real estate market, including the premium sector, is under positive pressure from increased tourism. In 2022, the income in the latter amounted to 22 billion euros, and in 2019 the figure was 18.9 billion euros. And the country’s guests increasingly prefer to look for rental properties outside Lisbon. Resorts such as Comporta and Erisheira are gaining in popularity, with premium hotel complexes and luxury rental apartments popping up.