Investing in property in the Algarve

Before starting to search, ask yourself, which part of the Algarve suits you best? The mature investment in a high league in the Central Algarve? Or the upcoming Western Algarve which is more accessible as to real estate prices with sea views? Or rather the Eastern Algarve which is less advanced and has an overall lower price for properties?

  • The off-plan property has, in general, a good return on investment in the not too distant future.
  • If you are considering investment as a project, you might want to buy a house that needs modernisation. This generates in a relatively short time the best yield when reselling.
  • If you are thinking to purchase a plot of land, think of a plot with an approved project. This will save you time because you don’t have to wait for a license and there are time limits imposed restricting how much time you have to complete. 
  • If you have no hurry, you can just buy some land, and wait for it to increase in value. Make sure there is viability to build on it. Check this with your lawyer and architect before you buy it! 
  • Although in Vilamoura prices are already relatively high, they are expected to increase with the new development towards Falesia Beach and there is still a good amount of houses and plots to buy. 
  • Lagos, Luz and Porto de Moz have suffered a big increase in value during the last 18 months. There are less lower priced high quality builds to find nowadays. The resale value will not yield.
  • Well-known affluent areas like Vale do Lobo or Quinta do Lago consolidated prices in a smooth upward line during the last years.  

 

     Investing in property in Lisbon

Baixa is the main banking and shopping district in Lisbon. Investment here has reached a peak point. Historical buildings now gleam as Portugal finally emerges from the lost decade of its economic crisis.
Ever since King Luis I decided to set up his royal summer retreat on Portugal’s coast in the late 19th century, the fishing village of Cascais has been transformed into one of the country’s top getaway destinations. At the same time, the Cascais’ entrepreneurial ecosystem is as welcoming as its beaches. Its startup scene is still young, but Cascais is growing similar to tech hubs around the world, however with a lot more charm. A safe investment is always good in numbers and here are the numbers Cascais has to offer:

  • 97 km of total area from which 32km belongs to the Natural Park and to which you should add a total of 141 parks and gardens
  • Around 30km of a seashore, 17 beaches, 3km of seawall and 12.391,53m of cycling paths
  • A network of public transports with 56 buses, a railway, a marina and a municipal aerodrome
  • 42 different nationalities living within the Municipality
  • Over 11 international and bilingual schools and a University Campus
  • Mild sunny climate, excellent gastronomy, kind local inhabitants and the safe laid-back lifestyle
  • Only 30 minutes driving distance from cosmopolitan Lisbon

One of the best real estate investments in Lisbon City is bringing back to life old abandoned buildings or apartments with relevant architecture or history. Correctly restored (respecting the laws, the original architecture, materials but with updated infrastructure), it is sellable at twice or three times the investment.
You can't simply make a prediction based on the general area of a property, you're going to need to take into consideration several different factors of whatever property you to decide to fixate on, such as: 

  • the surrounding properties (examine the area: - is it a safe neighbourhood? - are there businesses located within reasonable distance of this property?). The location is one of the most important aspects of the property.
  • History - Did this property have any bad or good history? Are there any negatives of the house, that may be highlighted by looking into its past? These are things that could make or break a property.
  • Price - of course, you're gonna know the price of a property, however, finding a good property to invest in is key. Examine surrounding houses in the area, and see what similar houses are selling for, to determine whether or not it's a worthwhile property to invest in.
  • Newcomers - Last but not least, see if properties around this area have been selling lately. If there's not much of immigration into the area, then it's likely not a desirable area to invest in.

 

     Investing in property in Porto

To make money off rent, target the estate at the university centre around and close to S.João Hospital. There is a constant flow of new students. You might want to pack 3-bedrooms with 6 people and generate cash on a weekly basis. The properties don’t need to be pristine. Apartments are still cheap enough to buy in higher volumes and have a company or individual managing them for you.
If you take time to search, you will find the nuggets of value around that area. Buy on the side of Gondomar, as you pay there fewer taxes. If you decide to bulk buy apartments, try having the garage space thrown in either for free or at a discount for some more revenue.

 

I would like to encourage you to carefully investigate any investment before taking action.
I don’t make any investment recommendations and suggest that you speak with a local accountant and a qualified local lawyer before making an investment.