Mclaren Investment Property Abroad

Why Invest In Portugal Property?

Overseas property investors regard Portugal as a prime location with a strong real estate market and high rental yields in popular tourist resort areas. Despite slower growth rates than in previous years, Portugal has held onto its appeal as a tourist and second home or retirement destination and its safe and solid economic climate continue to draw investors looking for stable medium to long term gains.

Martin Bowen, UK Sales Director for Profile Europe (UK) Ltd, says: “Portugal is on the crest of an investment wave, with estimates of increased interest for up to 10 years. The prognosis therefore for investors is exceptional, particularly in view of predictions of property in some regions of Portugal rising by up to 360% in the next decade.

Off-plan purchase is very popular in certain parts of the Algarve, where some investors are enjoying relatively high returns of 10% per annum in some areas, particularly in the new luxury golf resorts. Buy-to-let options can provide reliable rental income from golf as well as beachside properties, and these serve to boost investment returns, along with eventual capital appreciation upon resale.

Portugal has excellent direct flight communications with the UK and the rest of Europe, making it a convenient holiday destination. This accessibility increases potential investment yields and reinforces the continued success of Portugal as an investment location. A relatively low cost of living, great quality of life, pleasant, warm climate, stunning sandy beaches and a safe and friendly social environment are all valuable contributing factors to Portugal's successful property market.

Advantages of Investment in Portugal

• One of the lowest costs of living in the EU, though prices are slowly creeping up as Portugal regularizes its tax policies with the rest of the EU
• A highly appealing tourist location and quality of life conducive to a peaceful retirement destination 
• Stunning and diverse natural beauty, from rivers, cliffs and clean sandy beaches to mountains and championship golf courses, making it popular with all kinds of visitor 
• Interesting history and cultural heritage with a wealth of tourism potential throughout the country 
• Simple Buying Procedures
• English is widely spoken 
• Large presence of fellow British residents - some 50,000 properties are British owned in the Algarve alone. 
• Over 300 days of sunshine per year 
• Lowest crime rate in Europe and stable political climate 
• Construction density limits in the Algarve set at 8%, guaranteeing preservation of the natural environment 
• Possible growth rates of around 10% per annum and rental yields of maximum 10% in key locations 
• Shortage of property to supply an ongoing demand in popular resort areas