Three reasons why Portugal is the ideal place for real estate investment.

Considering the growing real estate market, thriving tourism sector, favorable climate, safety levels, historical charm, and outstanding quality of life, Portugal has become a smart and profitable choice for investors interested in real estate in Europe. Let's take a closer look at why Portugal is an excellent option for real estate investments.

1. Growing real estate market

This is undoubtedly the most obvious reason for such a situation. The real estate market in Portugal continues to develop, strengthening its position as one of the key components of the Portuguese economy. In 2023, the average price of housing in the country increased by8.2%According to data from the National Institute of Statistics (INE), the total sales volume reached28 billion eurosFor over ten years, housing prices in Portugal have been rising, and forecasts for 2024 indicate that this trend will continue. According to INE, the median market value of apartments in January of this year was1,725 euros per square meterthat on3.2%more than in January 2023 – in 2019 this figure was only1,098 euros per square meterThis constant growth is reflected in the high interest from both local and foreign investors looking to purchase real estate in Portugal.

Despite the growing demand, housing prices remain competitive compared to other European destinations, which makes Portugal one of the best places for profitable real estate investments in the future, emphasizes Daniela Rebuta, Sales Director at Engel & Völkers Lisbon. In terms of profitability, Portugal remains one of the leading destinations in Europe, and its tourism sector is constantly developing. Compared to other European countries, Portugal offers a more affordable cost of living, including housing prices that are lower than in cities like Paris, London, or Zurich. This attractive price-quality ratio particularly appeals to investors looking to increase the returns on their investments.

Our country has demonstrated significant economic stability in recent years, overcoming the financial crisis and enjoying steady economic growth, which makes it attractive to investors. Portugal also offers a relatively low property tax compared to other European countries, notes Daniela Rebuta, Sales Director at Engel & Völkers Lisbon.

2. Premium quality of life

Portugal is renowned for its unprecedented quality of life, offering an optimal blend of work and leisure, as well as a cozy atmosphere and stunning natural landscapes. This makes the country particularly attractive for those seeking a calm and healthy lifestyle. Moreover, the cost of living here is generally more affordable than in most European countries. Numbeo's quality of life index consistently ranks Portugal among the best countries in the world to live in, thanks to the combination of low living costs, high-quality healthcare, and a safe environment.

It is also worth noting that Portugal consistently ranks among the safest countries in the world, according to the Global Peace Index. This data highlights the additional appeal of the Portuguese real estate market and shows that our country is a reliable and profitable investment destination compared to other European nations.

In recent years, there has been a growing interest in real estate among both local residents and foreign citizens, driven by the country's economic growth and rising living standards, comments Daniela Rebutt, Sales Director at Engel & Völkers Lisbon.

3. Strategically important location

This aspect is hard to overestimate, as it plays a key role in many relationships. Portugal is located at the western tip of Europe and has a strategic position that connects Europe with Africa and America. This unique geographical location opens up investment opportunities in areas such as tourism, international trade, and logistics. Moreover, the development of the tourism sector is just one of many pieces of evidence. In addition to its outstanding location, the sector is fueled by the beauty of nature, the country's cultural heritage, a favorable climate, hospitality, exquisite cuisine, and famous wines, as well as a high-quality tourist infrastructure. All these aspects make Portugal a desirable tourist destination that attracts millions of tourists from around the world every year.

With the addition of the fact that the country is an attractive destination year-round, thanks to its mild Mediterranean climate with warm summers and mild winters, which contributes to its ongoing appeal for both investment and living. Portugal has always been one of the most popular tourist destinations in Europe. It is a top-tier tourist destination, renowned for its historic cities like Lisbon and Porto, as well as the stunning beaches of the Algarve and its rich culinary tradition. This creates an increased demand for short-term rental properties, presenting a huge opportunity for those looking to invest in Portugal, shares the opinion of Daniel Rebut.

These unique features make Portugal an outstanding place in the European market, offering a rare combination of investment opportunities and a high quality of life that sets the country apart from other European states. The real estate portfolio in Portugal represents an exceptional investment opportunity for those looking for long-term profitability. With growing interest in real estate, more competitive prices compared to other European countries, a stable political and economic situation, favorable tax policies, a developing tourism sector, and a high quality of life, Portugal is the ideal place for real estate investment. If you are looking for reliable and profitable real estate investments, Portugal truly stands out as the best choice, concludes Daniela Rebuta, Sales Director at Engel & Völkers Lisbon.