If purchasing a property in Portugal to live, vacation, or even retire has been a lifelong goal, it may be time to act. Due to the year-round sunshine, the culture, and the great quality of life, Portugal is home to millions of expatriates. The European nation boasts one of the highest homeownership rates, with almost 75% of the population owning a property. Despite the fact that the Portuguese real estate market was severely impacted by the 2008 economic crisis, purchasing property in Portugal today is not just a solid investment but also a home. The nationwide real estate market has been rising in value. If you are qualified to apply for a Portugal Golden Visa, purchasing a house might potentially result in permanent residency or even citizenship.
Purchasing real estate in Portugal as a foreigner is straightforward. There are no limitations on foreigners who wish to own a home in Portugal. To buy a property, you will not be required to submit any more paperwork or satisfy any other requirements. In Portugal, all that is required is a nmero de identificaco fiscal (NIF) or nmero de contribuinte (VAT identification number). This may be obtained by opening a Portuguese bank account or by contacting a Portuguese tax office.
The Portuguese real estate market continues to expand, despite a modest downturn during COVID. The typical price of a square meter of real estate in Portugal increased by 6.32 percent to €1,144 in 2020. This is a significant gain, although it is lower than the previous year's 11.16 percent growth. However, after COVID, prices are anticipated to increase much more and return to normal. The growth in 2020 will also vary by region. Let's have a look:
Lisbon Metropolitan Area: rose by 5.83% to a median price of €1,507 per square meter
Northern Portugal: rose by 6.54% to a median price of €994 per square meter
Central Portugal: rose by 3.87% to a median price of €833 per square meter
Alentejo: rose by 2.84% to a median price of €833 per square meter
Algarve: rose by 7.28% to a median price of €1,562 per square meter
Azores: rose by 3.41% to a median price of €940 per square meter
Madeira: rose by 2.55% to a median price of €1,168 per square meter
Cascais is one of the most expensive housing markets in Portugal for a reason. This municipality in the Portuguese Riviera features a 30-kilometer coastline with some of the country's finest beaches. The center is active all year long, with high-quality restaurants and stores. The former summer residence of the Portuguese Royal Family, Cascais is a hidden gem of great historical significance in Portugal. This location is ideal for raising a family because of its natural beauty, clean parks, and excellent public schools. Due to a high IMI, Cascais has well-funded facilities, as seen by the excellent public transit to Lisbon, which takes only 30 minutes.
The Algarve is the most popular holiday location in Portugal, with the nicest climate and warmest ocean. With more than 300 days of sunshine, the Algarve is a popular destination for retirees, notably from the United States and the United Kingdom. The Algarve contains several public and private schools, as well as foreign schools. This is one of the most English-speaking and safest areas in Portugal. Algarve offers a variety of real estate investment opportunities, ranging from opulent mansions to modest dwellings.
The Lisbon real estate market has attracted investments from firms and people from all over the world. The market is seeing exponential growth. This is not a cheap area to buy, but you can always locate cheaper homes outside of the city center. In addition to its magnificent beaches and parks, Lisbon boasts an excellent infrastructure with superb transit, reasonable pricing, and low costs. It offers some of the greatest public schools in the country and is one of the safest cities in Europe.
The city of Porto, 280 kilometers north of Lisbon and situated on the Douro River, is a smart investment. Porto is one of our favorite Portuguese cities and one of the most beautiful locations to reside. The city has 220 sunny days per year and a low cost of living (lower than Lisbon). Over the years, Porto has attracted foreigners and developed a sizable international community. The city boasts a low crime rate and an outstanding infrastructure, including efficient transportation and clean parks.
As rates in Lisbon, Porto, and the Algarve skyrocket, the Alentejo continues to be an excellent option. We would hardly even call it a replacement. You can find everything in Alentejo that you can in Algarve, but better, because the region is not as overrun with tourists. Alentejo boasts the stunning coastline of the Algarve, as well as arid regions where peaceful agricultural life is the norm.
The northern city of Braga is one of the most affordable areas to purchase a home in Portugal. The price per square meter of a home in the city center is €1,481. Compared to Lisbon, where a home costs €4,623 per square meter, there is a significant difference. Cascais, on the Portuguese Riviera, is the most costly location, with a house costing €5,395 per square meter. In the city center of Porto, a home costs €2,709 per square meter. Keep in mind that in order to be qualified for a Portugal Golden Visa, you may no longer acquire property in Lisbon, Porto, and seaside cities.
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