Is investing in Portuguese real estate a profitable choice? The answer is threefold

The real estate sector in Portugal has seen moments of uncertainty and challenge, with several industry players demanding a greater supply of residential homes. Demand, in turn, remains high, especially from foreign investors. Thus, is investing in national real estate a good option at this time, amidst a worrying economic situation? There are arguments that help provide an answer.

Competitive cost of houses

"Competitive house prices, demand for short-term rental properties and an excellent investment opportunity for those seeking long-term income are the main reasons to invest in Portugal," Engel & Völkers (E&V) said in a statement.

Reasons to invest in real estate in Portugal

According to a real estate broker, there are three reasons that show that investing in real estate in Portugal is a good option.

• Competitive house prices
• A great investment opportunity for those looking for long term income
• Demand for real estate for short-term rentals

"A significant increase in demand for short-term rental properties and guesthouse investments is noticeable," the intermediary reports, noting that Portugal has "become one of Europe's most popular and sought-after tourist destinations in recent years." The increase in demand is due to factors such as climate, safety, cost of living and remote work opportunities. As Vanessa Moreira, sales director of E&V Portugal, notes, the country "has had a huge surge in real estate" and recalls that in 2022 it was recognized as the 20th country with the highest quality of life in the world, which affects not only purchasing power, but also cost of living, climate, security and environmental quality. "These factors make buying real estate a good and safe investment, whether it is for a first or second home. Portugal is currently one of the most popular countries for foreign investment, accounting for around 63% of all transactions in the industry," she notes.