Posted on 13 April 2017
It’s the perfect concoction all property buyers dream of: rising prices but lower borrowing costs. A dream that has become a reality for anyone looking to snap up their ideal home in Portugal. Favourable conditions that will allow savvy buyers to save money, while their property appreciates in value and matures into a sound long-term investment.
Rising house prices
Recent data from Portugal’s National Statistics Institute revealed that the average price of property rose to €1,106 per square metre during February, a monthly rise of 0.5%. Meaning your 100 square metre property in Portugal would have increased in value by €600 in the space of four weeks without you even lifting a finger. The year-on-year rise to January 2017 reached 5.6%, accelerating rapidly from below 5% the previous month. While this data represents the country as a whole, there is evidence from a leading estate agent that indicates prices in the most popular areas for British and other international buyers – Algarve and Lisbon – are forging ahead even faster.
According to a report by the Royal Institution of Chartered Surveyors and Confidencial Imobiliário, not only are new buyer enquiries on the up and sales figures rising at their fastest monthly rate since September 2015, house prices are predicted to rise by an average of 5% in next 5 years.
If you want to cash in on the Portuguese property market download your FREE Portugal Buying Guide here!
For property buyers concerned that prices might dip after an encouraging start to the year, the good news is that Portuguese property remains well below average prices in most Western European countries, including Spain (€1,512) and France (roughly €2,000). They are also getting cheaper to buy, with Portuguese mortgage rates falling at the start of the year. The fixed rate is now 1.025%, down from 1.028% in December. This brings the average mortgage repayment down to €237 per month.
And the good news doesn’t end there. Anyone planning on renting out their property will be pleased to hear that strong demand in the Portuguese rental market from sun-seeking British tourists is pushing rents higher. This trend is expected to continue over the coming months, which will be music to the ears of any budding expat entrepreneurs out there.
So what are you waiting for? Book that viewing trip to Portugal ASAP! The stars have aligned to provide overseas property buyers in Portugal with an unmissable opportunity to both save and make money on their purchase. Cash in on rising values and lower borrowing costs – it’s win-win for buyers!
For more information about living in Portugal, download your FREE Portugal Buying Guide here!