ADVERTISEMENT
  • News
  • Technology
  • Culture
  • Entertainment
  • Sport
  • Travel
  • Music
  • More
    • Politics
    • Lifestyle
    • TV
    • Games
Friday, June 9, 2023
  • Login
No Result
View All Result
NEWSLETTER
FINCHANNEL
  • Home
  • Business
    • BANKS
      • GeoBanks
    • Finance
    • Insurance
    • Markets
    • Pharmacy
    • Press Releases
    • RealEstate
    • RealEstate
    • Finance
    • Insurance
    • Banks
      • GeoBanks
    • Markets
    • Press Releases
    • Personal Finance
  • World
    • America
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Americas
    • UK local news
  • Travel
    • Hotels in Georgia
    • Tours in Georgia
  • Videos
    • Promos
    • Soundslides
    • TheClinics
    • TheHoteliers
    • TheUniversities
    • TheHoteliers
    • TheClinics
    • TheUniversities
    • BestWorkplaces
    • Soundslides
    • Promos
    • Banking Forum
      • Promos
      • Soundslides
      • TheClinics
      • TheHoteliers
      • TheUniversities
  • Opinion
    • Editorial
      • Analysis
      • GORBI
      • OP-ED
      • VISA Editorial
    • Analysis
    • Gorbi
    • Book reviews
  • Tech
  • Interview
  • People
    • CityLife
    • Health & Beauty
      • Coronavirus
    • LifeStyle
    • Employment
      • MyCareer
    • Education
    • Media
    • Celebrities
  • Oil&Auto
    • Auto
    • Energy
  • EN
    • EN
    • GE
  • Home
  • Business
    • BANKS
      • GeoBanks
    • Finance
    • Insurance
    • Markets
    • Pharmacy
    • Press Releases
    • RealEstate
    • RealEstate
    • Finance
    • Insurance
    • Banks
      • GeoBanks
    • Markets
    • Press Releases
    • Personal Finance
  • World
    • America
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Americas
    • UK local news
  • Travel
    • Hotels in Georgia
    • Tours in Georgia
  • Videos
    • Promos
    • Soundslides
    • TheClinics
    • TheHoteliers
    • TheUniversities
    • TheHoteliers
    • TheClinics
    • TheUniversities
    • BestWorkplaces
    • Soundslides
    • Promos
    • Banking Forum
      • Promos
      • Soundslides
      • TheClinics
      • TheHoteliers
      • TheUniversities
  • Opinion
    • Editorial
      • Analysis
      • GORBI
      • OP-ED
      • VISA Editorial
    • Analysis
    • Gorbi
    • Book reviews
  • Tech
  • Interview
  • People
    • CityLife
    • Health & Beauty
      • Coronavirus
    • LifeStyle
    • Employment
      • MyCareer
    • Education
    • Media
    • Celebrities
  • Oil&Auto
    • Auto
    • Energy
  • EN
    • EN
    • GE
No Result
View All Result
FINCHANNEL
No Result
View All Result
Home Business RealEstate

Research: Is Portuguese real estate worth buying right now? (2022, Q3)

by The FINANCIAL
November 24, 2022
in RealEstate
0
Research: Is Portuguese real estate worth buying right now? (2022, Q3)
Share on FacebookShare on Twitter

Portuguese real estate has long been a sought-after commodity for UK, US, and foreign citizens – and for good reason. A generous climate and a gateway to European citizenship are two primary motivators for investors.

ADVERTISEMENT

However, between 2020 and 2022, demand dramatically exceeded supply and caused the price of Portuguese real estate to increase dramatically. In fact, inflation-adjusted square meter prices in the country have since risen to their highest point in 30 years.

Global Property Guide has provided some analysis of the market.

RelatedPosts

The housing market has tilted firmly back in favor of sellers

People exposed to war and destruction place less value on housing and homeownership – even decades later

Your Essential Homeowners Guide to Buying Patio Doors

A Renovation Contractor’s Guide to Perfection

1) Current and historical house prices in Portugal

As stated above, square meter prices in Portugal have risen considerably in the last two years:

Peak growth began in 2021, fueled by both local and foreign buyers.

According to numbers released by INE (the Spanish Institute of National Statistics), investment from EU nationals increased by 72.3%, while capital from non-EU rose by 79.1% (2021).

Furthermore, between 2015 and 2022, new build square meter prices have increased by over 90%. Adjusting for inflation, this statistic settles at an 80% growth.

The latest growth was likely inflated by Portugal’s “Golden Visa” program, alongside the Covid-19 pandemic and Ukraine-Russia War.

Currently, Portuguese mortgage interest rates are increasing. This is mostly due to Euribor, which is predicted to reach somewhere between 4-5% in 2023. Most mortgages in Portugal are “floating” – this means interest rates are usually 1-2% plus Euribor.

It could be good news for the buyers to acquire some reasonable priced properties when prices start to go down. Due to people being forced to sell their properties because of increased loan repayments.

However, if the inflation keeps being high in the EU and Portugal, the property prices could well keep rising as even more investors are looking to lower their cash positions.

How much does it cost to buy an apartment in Portugal?

Below is a “price guide” for Portugal right now.

These are median prices calculated by using Idealista listings.

Studio apartments:

Lisbon: €250K – €300K
Porto: €170K – €220K
Faro: €120K – €160K
Funchal (Madeira): €140K – €160K
In Algarve, most 4-5 bedroom villas are in the $800K – $1.4M range, though the vast majority require a degree of renovation. New builds or renovated villas commonly exceed $1.5M.

2) Gross long-term rental yields

We compared current residential apartment listings to calculate gross rental yields for different apartments in Portugal – from studio apartments to 3+ bedroom properties.

According to our research, Portugal has an average gross rental yield of 5.20% – this figure rises to 7% for long-term rentals in some locations.

An example: a studio apartment in Lisbon can be bought for roughly €280K.

Such a property, in good condition, can be rented out for €1,150/month and have a gross rental yield of 4.8% (pre-tax). Keep in mind that net yields are lower due to letting agent fees, taxes, and other process costs.

 

3) Short-term rental market overview

Lisbon, Porto, and the Algarve are the most lucrative areas for short-term rentals and Airbnb.

In the first nine months of 2022, considering all means of accommodation (tourist accommodation establishments, camping and holiday camps, and youth hostels), there were 22.6 million guests and 61.3 million overnight stays registered.

Although, it’s worth noting that Lisbon has recently implemented Airbnb restrictions, with prospective hosts now requiring a license for their properties to be deemed legitimate. A further caveat is that the governing body has also stopped issuing said licenses – though there is hope for the program to continue soon.

Above is a showcase from Sintra (Lisbon) short-term market top properties according to AirDNA.

It’s not 100% accurate, but you can get a sense of what kind of yields you can expect from different parts of the world.

Each apartment is rented via Booking.com and Airbnb, and occupancy rates in the last 12 months have hovered around 80%.

Gross revenue would consequently be $95K/year, with the operating profit reaching $60K (pre-tax).

The property itself commands a purchasing price of $900,000.

4) Property related taxes

As a European country, purchasing property in Portugal is easy for foreign investors. The tax system, however, comes with more complications.

Buying tax (IMT): 1-8% (the more expensive the property, the more you pay).

Wealth Tax / Real Estate Tax:

Owners of properties worth over €600,000 must also pay Wealth Tax, or AIMI (Adicional Imposto Municipal Sobre Imóveis). Annual rates begin at 0.7% of the property’s value, increasing to 1% for properties worth over €1,000,000 and 1.5% for those valued over €2,000,000. Commercial properties are exempt from this tax.

Other fees

Lawyer fees: 1-2%
Land registry + Notary: 1%
VAT: 23% (if applicable)

Overall, Portugal’s tax system is certainly not the cheapest in Europe, but it does have many good aspects.

ADVERTISEMENT
The FINANCIAL

The FINANCIAL

Since 2005

Related Posts

Home values in U.S. decline for second month as competition eases
RealEstate

The housing market has tilted firmly back in favor of sellers

by The FINANCIAL
May 21, 2023
0

The FINANCIAL -- "Buyers are back on the hunt for houses in what is typically the hottest time of year,...

Read more
What do exiled Russian art world figures think of the war? We spoke to three in Tbilisi to find out

People exposed to war and destruction place less value on housing and homeownership – even decades later

May 3, 2023
Your Essential Homeowners Guide to Buying Patio Doors

Your Essential Homeowners Guide to Buying Patio Doors

February 17, 2023
A Renovation Contractor’s Guide to Perfection

A Renovation Contractor’s Guide to Perfection

February 17, 2023
Next Post
Colorado club shooting victims

Colorado club shooting victims

Please login to join discussion
ADVERTISEMENT
  • Trending
  • Comments
  • Latest
Find Social Security Number by Name Free

Find Social Security Number by Name Free

November 23, 2022
Swedish banks’ commercial property problem loans lowest in Europe – EBA

Swedish banks’ commercial property problem loans lowest in Europe – EBA

May 8, 2023
EasyJet to fly to London from Stockholm Arlanda

The London Diplomatic List, Addresses, Contacts & Working Hours

January 23, 2023
How to Check KRA Pin Using ID Number

How to Check KRA Pin Using ID Number

June 25, 2018
Humana shares on the up as earnings show Medicare growth

Humana shares on the up as earnings show Medicare growth

May 8, 2023
NATO is seen favorably in many member countries, but almost half of Americans say it does too little

NATO Allies condemn Russia’s decision to withdraw from the landmark Treaty on Conventional Armed Forces

June 9, 2023
New sanctions legislation allows the UK to target exports from Belarus funding the Lukashenko regime

New sanctions legislation allows the UK to target exports from Belarus funding the Lukashenko regime

June 9, 2023
Between 1979 and 2022, the total register has increased by 4.1 million companies

£40 billion spent protecting families and businesses from energy costs

June 9, 2023
World Media: For Trump Impeachment

Donald Trump indicted for allegedly mishandling classified documents seized at Mar-a-Lago: Recap

June 9, 2023
The Latest Evidence That Ukraine’s Counteroffensive May Have Begun

The Latest Evidence That Ukraine’s Counteroffensive May Have Begun

June 9, 2023

Popular Last 24h

  • Find Social Security Number by Name Free

    Find Social Security Number by Name Free

    1 shares
    Share 0 Tweet 0
  • Business Risks in Portugal

    0 shares
    Share 0 Tweet 0
  • The Latest Evidence That Ukraine’s Counteroffensive May Have Begun

    0 shares
    Share 0 Tweet 0
  • The London Diplomatic List, Addresses, Contacts & Working Hours

    0 shares
    Share 0 Tweet 0
  • Digital Transformation: Shaping the Future of Finance

    0 shares
    Share 0 Tweet 0
  • A new study has named Montana the best state in America to start a business

    0 shares
    Share 0 Tweet 0
  • Global Finance: TBC Bank in the World’s Best Banks 2023

    0 shares
    Share 0 Tweet 0

LATEST POSTS

NATO is seen favorably in many member countries, but almost half of Americans say it does too little

NATO Allies condemn Russia’s decision to withdraw from the landmark Treaty on Conventional Armed Forces

June 9, 2023
New sanctions legislation allows the UK to target exports from Belarus funding the Lukashenko regime

New sanctions legislation allows the UK to target exports from Belarus funding the Lukashenko regime

June 9, 2023
Between 1979 and 2022, the total register has increased by 4.1 million companies

£40 billion spent protecting families and businesses from energy costs

June 9, 2023
World Media: For Trump Impeachment

Donald Trump indicted for allegedly mishandling classified documents seized at Mar-a-Lago: Recap

June 9, 2023
The Latest Evidence That Ukraine’s Counteroffensive May Have Begun

The Latest Evidence That Ukraine’s Counteroffensive May Have Begun

June 9, 2023

Assessment of Online Games Design changes

June 9, 2023

Headline inflation is falling but core remains persistent

June 9, 2023
Putin warned Chechnya’s leadership

Adjara officials ‘met Kadyrov-linked businessman’ in Batumi

June 9, 2023
Turning warmer but more unsettled

Turning warmer but more unsettled

June 9, 2023
Engineers Create Faster and Cheaper COVID-19 Testing with Pencil Lead

4 million checks, tests and scans carried out by CDCs

June 9, 2023

LATEST INTERVIEWS

“EU membership might attract European banks and other financial institutions to enter Georgia”

“EU membership might attract European banks and other financial institutions to enter Georgia”

by The FINANCIAL
May 15, 2023
0

Main risks facing banks in 2023

Main risks facing banks in 2023

by The FINANCIAL
May 15, 2023
0

‘Russia cannot be treated as a reasonable and reliable trade partner

‘Russia cannot be treated as a reasonable and reliable trade partner

by The FINANCIAL
February 13, 2023
0

We should increase our joint efforts to assist the growing tech sector here in Georgia

We should increase our joint efforts to assist the growing tech sector here in Georgia

by The FINANCIAL
February 13, 2023
0

‘Georgia has much to offer to UK investors

‘Georgia has much to offer to UK investors

by The FINANCIAL
February 13, 2023
0

‘The best way for the Georgian economy to prosper is to join the EU

‘The best way for the Georgian economy to prosper is to join the EU

by The FINANCIAL
February 13, 2023
0

‘The Kremlin wants Georgia to fail or abandon its European path

‘The Kremlin wants Georgia to fail or abandon its European path

by The FINANCIAL
February 13, 2023
0

Russian Patriarch Kirill Says Dying In Ukraine ‘Washes Away All Sins’

Interview: Why Putin Might Prefer A Stalemate To Going Nuclear On Ukraine

by The FINANCIAL
October 22, 2022
0

Newsletter

ADVERTISEMENT

GET IN TOUCH

E-mail your company news at:

news (at) financial.ge Letters to the Editor: editor (at) finchannel.com

Local Marketing contact:

(+99532) 2252 275 | 76 EXT: 1 (+995 558) 03 03 03 (mobile) marketing (at) finchannel.com

Requests from abroad:

(+99532) 2252 275 | 76 EXT: 7 (+995599) 96 52 52 Email: zviadi (@) finchannel.com Contact video editor: E-mail: video (at) financial.ge

Postal address: 17 Mtskheta str. Tbilisi, Georgia 0179 The FINANCIAL

RESOURCE

  • Work at the FINANCIAL
  • ePaper
  • Advertise in The FINANCIAL
  • Access ePaper
  • Guest posts
  • Contributed articles
  • AmericanStockNews
  • Coupon Codes
  • GLOSSY MAG
American Culture Center
ACC Partner

GUIDEBOOK

  • Meet our team
  • Invest in Georgia
  • Become contributor
  • Archive

FOLLOW US

  • Facebook
  • Twitter
  • Google+
  • Youtube
No Result
View All Result
  • Home
  • Business
    • BANKS
      • GeoBanks
    • Finance
    • Insurance
    • Markets
    • Pharmacy
    • Press Releases
    • RealEstate
    • RealEstate
    • Finance
    • Insurance
    • Banks
      • GeoBanks
    • Markets
    • Press Releases
    • Personal Finance
  • World
    • America
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Americas
    • UK local news
  • Travel
    • Hotels in Georgia
    • Tours in Georgia
  • Videos
    • Promos
    • Soundslides
    • TheClinics
    • TheHoteliers
    • TheUniversities
    • TheHoteliers
    • TheClinics
    • TheUniversities
    • BestWorkplaces
    • Soundslides
    • Promos
    • Banking Forum
      • Promos
      • Soundslides
      • TheClinics
      • TheHoteliers
      • TheUniversities
  • Opinion
    • Editorial
      • Analysis
      • GORBI
      • OP-ED
      • VISA Editorial
    • Analysis
    • Gorbi
    • Book reviews
  • Tech
  • Interview
  • People
    • CityLife
    • Health & Beauty
      • Coronavirus
    • LifeStyle
    • Employment
      • MyCareer
    • Education
    • Media
    • Celebrities
  • Oil&Auto
    • Auto
    • Energy
  • EN
    • EN
    • GE

© 2023 JNews - Premium WordPress news & magazine theme by Jegtheme.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.