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

Considering the growth of the real estate market, a thriving tourism sector, a favorable climate, safety, historical charm, and a high quality of life, Portugal stands out as a smart and profitable choice for real estate investments on the European continent. Let's take a closer look at the reasons why Portugal is the ideal place for real estate investors.

1. Steady growth of the real estate market

This is undoubtedly the most obvious reason for the current situation. The real estate market in Portugal continues to show positive results, strengthening its position as one of the most important sectors of the Portuguese economy. According to the National Institute of Statistics (INE), housing prices in the country increased in 2023 by8.2%The total amount of transactions reached an impressive28 billion eurosFor over ten years, the cost of residential real estate in Portugal has been on the rise, and this trend is expected to continue in 2024. According to INE, in January 2023, the average bank valuation of apartments was1.725 eurosfor square meter, which is3.2%higher than at the beginning of last year, while in 2019 this figure was only1.098 eurosThis steady growth is a result of high interest from both local and foreign investors in acquiring real estate in Portugal.

Despite the growing demand, housing prices remain competitive compared to other European destinations, making Portugal one of the best places to invest in real estate for profitable income in the future. "In terms of profitability, Portugal continues to be one of the leading European destinations, and its tourism sector is constantly growing," she adds. Compared to several other countries in Europe, Portugal offers a more affordable cost of living, including lower housing prices compared to cities like Paris, London, or Zurich. This appealing balance of cost and quality of life is particularly attractive to investors looking to maximize their investments.

In recent years, our country has demonstrated remarkable economic stability, overcoming the financial crisis and enjoying sustainable economic development, making it attractive to investors. Portugal also has relatively low property tax rates compared to other European countries.

2. High quality of life

Portugal is renowned for its unique quality of life, providing a harmonious blend of work, leisure, and well-being, as well as offering a mild climate, stunning landscapes, rich culture, and a relaxing atmosphere. This quality of life makes the country particularly appealing to investors seeking a comfortable and tranquil lifestyle. Furthermore, the overall standard of living in Portugal is often more affordable than in most other European countries.

The Numbeo Quality of Life Index consistently ranks Portugal among the best countries in the world to live in, thanks to a combination of low cost of living, access to high-quality healthcare, and a safe, peaceful environment. In 2024, Portugal ranked20th placeIn the global index, it surpasses Australia, the United Kingdom, Belgium, France, and Canada.

These additional data further highlight the attractiveness of the Portuguese real estate market and confirm our country's status as a reliable and profitable place for investment compared to other European countries. Portugal offers a quality of life that is truly valued by residents and tourists from around the world. "In recent years, there has been a growing interest in real estate in Portugal from both locals and foreign citizens, driven by the country's economic growth and rising living standards," says Daniela Rebuta.

3. Strategically advantageous location

One of the most important factors contributing to Portugal's success has always been its location. Situated on the western edge of Europe, Portugal has a strategic position that makes it a link between Europe, Africa, and America. This geographical advantage creates unique opportunities for investment in areas such as tourism, international trade, and logistics. Evidence of this is the active development of the tourism industry.

Moreover, the sunny climate, natural beauty, historical landmarks, friendliness of the locals, excellent cuisine, and renowned wines contribute to the increasing influx of tourists. All these factors make Portugal one of the favorite holiday destinations, attracting millions of tourists from around the world every year. With its mild Mediterranean climate featuring hot summers and mild winters, Portugal remains appealing to investors and those seeking a comfortable place to live year-round.

“Portugal has repeatedly become one of the most popular tourist destinations in Europe. It is a top-notch tourist spot with historic cities like Lisbon and Porto, unforgettable beaches in the Algarve, and a unique culinary culture. This leads to a growing interest in short-term rental properties, which opens up great opportunities for property owners,” adds Daniela Rebut.

These unique features make Portugal a special place in the European context, offering not only excellent investment opportunities but also an exceptional quality of life, which sets the country apart from other European states. "The Portuguese real estate market offers outstanding opportunities for those seeking long-term profitability. With the growing demand for housing, competitive prices compared to other European countries, a stable political and economic situation, favorable tax conditions, a developing tourism sector, and a high quality of life, Portugal is the ideal choice for real estate investors. If you are looking for reliable and profitable real estate investments, then Portugal will definitely be your best option," assures Daniela Rebuta.