Three reasons why Portugal is the ideal destination to invest in real estate – C-Studio

With a growing real estate market, a thriving tourist sector, a favorable climate, security, historical charm and an exceptional quality of life, Portugal stands out as a smart and profitable choice when it comes to investing in property in Europe. See in detail the reasons why Portugal is the right choice for real estate investors.

1. Growing real estate market

It is the most obvious reason for this scenario. The real estate market in Portugal continues to grow, reinforcing the sector’s position as one of the drivers of the Portuguese economy. In 2023, the price of housing in the country rose 8.2%, according to data from the National Statistics Institute (INE), with a global sales volume that reached 28 billion euros. The price of houses in Portugal has been rising for more than 10 years and it is a trend that appears to continue in 2024, and, according to the INE, in January this year, the median bank appraisal value of apartments stood at 1,725 euros/m2, an increase of 3.2% compared to January 2023 – in 2019, this value was 1,098 euros per square meter. This sustained growth is a reflection of the strong interest of investors, both national and foreign, in acquiring properties in Portuguese territory.

“Despite the increase in demand, housing prices continue to be competitive compared to other European destinations, which makes Portugal one of the best places for real estate investment with a view to obtaining a good return in the future”, explains Daniela Rebouta, sales director at Engel & Völkers Lisbon. “In terms of profitability, Portugal continues to be one of the main European destinations and its tourism sector is constantly growing”, she adds.

Compared to other European countries, Portugal offers a more affordable cost of living, including lower property prices compared to cities like Paris, London or Zurich. This attractive cost-benefit ratio is especially appealing to investors looking to maximize the return on their investment.

“Our country has maintained remarkable economic stability in recent years, having overcome the financial crisis and enjoying sustained economic growth, which makes it an attractive option for investors. Portugal also offers a relatively low wealth tax rate compared to other European countries.” Daniela Rebouta, sales director at Engel & Völkers Lisbon

2. Balanced quality of life

Portugal is known for offering an incomparable quality of life, with a perfect balance between work, leisure and well-being, and a combination of mild climate, stunning landscapes, rich culture and a relaxed atmosphere. This quality of life is especially attractive to investors looking for a relaxed lifestyle. Furthermore, the cost of living is generally more affordable than in most European countries.

Numbeo’s Quality of Life Indicator consistently ranks Portugal as one of the best countries in the world to live in, due to the combination of low cost of living, access to quality healthcare and a safe and peaceful environment – ​​in the 2024 country index , Portugal occupies the 20th position, ahead of countries such as Australia, the United Kingdom, Belgium, France and Canada. Additionally, Portugal is consistently ranked as one of the safest countries in the world, according to the Global Peace Index.

This additional data further reinforces the attractiveness of the Portuguese real estate market and highlights our country as a solid and profitable investment destination compared to other European countries. Portugal offers a standard of living that is truly appreciated by residents and visitors from all over the world.

“In recent years, demand for property in Portugal has increased both among Portuguese and foreigners, driven by the country’s economic growth and improved standard of living.” Daniela Rebouta, sales director at Engel & Völkers Lisbon

3. Strategic location

We cannot deny that this has always been an important factor for Portugal on several fronts. Located on the western tip of Europe, Portugal enjoys a strategic location that makes it a connecting point between Europe, Africa and America. This privileged geographical position offers unique investment opportunities in sectors such as tourism, international trade and logistics. Proof of this is the growth of the tourism sector. In addition to the privileged location, the sector is driven by the country’s natural beauty, cultural heritage, favorable climate, hospitality, excellent cuisine and renowned wines, as well as accessibility and high-quality tourist infrastructure. All of these factors contribute to making Portugal a top tourist destination, attracting millions of visitors from all over the world each year. With the bonus of being an attractive destination all year round, thanks to the mild Mediterranean climate, with hot summers and mild winters, which contributes to the country’s continued attractiveness as an investment destination and place of residence.

“Portugal has always been one of Europe’s most popular tourist destinations. It is a premier tourist destination, with historic cities such as Lisbon and Porto, stunning beaches in the Algarve and a rich gastronomic culture. This is leading to an increase in demand for luxury rental properties. short duration, which represents a great opportunity for those who wish to invest in Portugal”, explains Daniela Rebouta.

These unique characteristics make Portugal a distinct destination in the European panorama, offering a unique combination of investment opportunities and quality of life that differentiate it from other European countries. “The Portuguese real estate market offers an excellent investment opportunity for those looking for long-term profitability. With a growing demand for properties, more competitive prices than in other European countries, political and economic stability, favorable tax policies, a growing tourism sector and a high quality of life, Portugal is the ideal destination for real estate investors. If you are looking for a solid and profitable real estate investment, Portugal is definitely the best option”, guarantees Daniela Rebouta, sales director at Engel & Völkers Lisbon.