Portugal Real Estate: One of 2019’s Top Emerging Trends

Recent years have brought both uncertainty and unmissable opportunities for investors buying into Europe. Real estate leaders across the continent are very optimistic about what’s to come in 2019, though are becoming increasingly selective with regard to investment hotspots. Some of the usual safe-havens are no longer open for business, while other locations are emerging as firm favourites for the year ahead.

Unsurprisingly, the looming prospect of the UK leaving the EU is having an impact on real estate markets at home and abroad. Referred to as ‘the Brexit effect’, the UK’s EU departure is causing ripples that can be felt worldwide.

But rather than wreaking havoc on European property markets, it’s simply prompting investors to carefully think and re-think their short-term and long-term investment decisions.

The Brexit Effect

As the biggest political and economic shift in the UK since the Second World War, the impact of Brexit is not to be underestimated. Irrespective of whether the UK leaves the EU with or without a deal, analysts worldwide predict a detrimental impact on the country’s economy.

Already, investors are turning their attention elsewhere, businesses are exiting the UK in record numbers and Britain’s capacity to attract talent from overseas is falling. Unfortunate for the UK, but the result of such uncertainty is a marked increase in investment activity in other parts of the Eurozone.

Or to put it another way, the UK’s somewhat bleak outlook due to the Brexit Crisis is playing right into the hands of many key European markets.

Portugal real estate

The 2019 ‘Emerging Trends in Europe’ report singled out a bunch of European cities as the hottest investment prospects for the year ahead. By taking into account overall investment and development prospects in the area, Portugal real estate emerged as the leader of the pack.

Specifically, Portugal properties in and around Lisbon showed remarkable promise for 2019 and beyond.

As many of the usual investment hot-spots around Europe hit their predicted peaks, attention is turning to the rising stars on the scene. Smaller and more dynamic cities, expected to experience enormous and continuous growth throughout 2019. Market analysts and economists have cited Lisbon’s quality of life and thriving tourist industry as two of its main points of appeal for investors.

A handful of larger ‘tried and tested’ markets appear in the top-ten listings for 2019, but the presence of several smaller newcomers like Lisbon is nonetheless notable.

A Key Talking Point

Lisbon has become a key talking point among investors worldwide. It’s a city that’s creating a serious buzz that’s unlikely to dissipate anytime soon. Now at the very top of the Emerging Trends Europe rankings, Lisbon is a small market that nonetheless promises impressive returns.

The appeal of Lisbon as an investment hotspot is multi-faceted. For example, some are attracted by the region’s comparatively affordable real estate and cheap labour. Not to mention, Lisbon’s reputation in general life-quality stakes. Portugal as a whole has also become a hugely popular destination among national and international corporations looking to expand their operations and reach.

Source: TourRadar

Such is the demand for quality residential and commercial real estate in Lisbon than affordable space is becoming increasingly difficult to find. Even with a raft of future development planned, there’s still nowhere near enough to satisfy growing demand. As a result, real estate prices in key parts of Lisbon are expected to skyrocket in the months and years to come.

It’s a similar picture on the leisure and tourism side of the spectrum too. Lisbon’s tourism industry has experienced consistent growth for several years now, attracting millions of domestic and international tourists each year. Quality accommodation is in year-round demand, with both short- and long-term lets running short during seasonal peaks.

From retirement properties to holiday homes to weekend lets for a short break, Lisbon has become one of Europe’s most desirable destinations. While there’s still time to secure quality Lisbon real estate at an affordable price, the window is closing…and fast.

Why Portugal?

But what is it about Portugal that’s proving so appealing for outside investors? Not to mention, those looking to relocate permanently, or simply spend a few days, weeks or months in Lisbon?

For one thing, the diversity of the landscape and environment in Portugal is something else. Ancient history blends seamlessly with cosmopolitan city living, while the country’s natural assets range from towering mountains to sprawling countryside to the most beautiful beaches in the world. Portugal is a country that appeals to all tastes and preferences for a variety of reasons, including but not limited to the following:

The Climate

Portugal enjoys the kind of year-round climate that’s the envy of the rest of Europe. Some regions boast up to 3,300 hours of sunshine per year. The summers are hot and the winters are mild, making Portugal an excellent place to visit at any time of year.

The People

The Portuguese are known far and wide as welcoming, friendly and gracious – both to their fellow countrymen and outsiders. As an added bonus, English is the unofficial second language of Portugal and is widely spoken across much of the country. Precisely why many immediately feel at home when visiting cities like Lisbon and choose never to leave.

Geography

Situated just two hours from both London and Paris by plane, Portugal occupies a strategic position at the Northwest corner of Europe. The three major international airports – Lisbon, Faro and Porto – connect Portugal with the rest of the world, while the country’s road and rail networks are second to none. Both for business and leisure purposes, Portugal couldn’t be in a better geographic position.

Safety and Security

According to the 2017 Global Peace Index, Portugal is the third safest country to live out of the 163 countries ranked. In addition, the city of Lisbon consistently ranks toward the top of the table in annual quality of life studies.

Cost of Living

If all this wasn’t enough, the overall cost of living in key Portuguese markets is far lower than that of comparable nations. Coupled with tax leniency for businesses and expats alike, Portugal is a country in which the average budget goes much further.

Hence, it’s of little surprise that Portugal is emerging as one of the top real estate markets for discerning investors in 2019.