Posted on 25 September 2017
If you’re planning to buy in Portugal but feel lost without the sound of a siren, the hoot of car horns and the general hum of city life, you’ll be pleased to find out that Lisbon offers that perfect combination of low entry level prices and plenty of room for prices to grow. According to global property analyst CBRE, prices in Portugal’s capital city were around €1,700psm last year, compared to as much as much as €10,000psm in central Paris or London. Consequently, a budget of €200,000 is enough to pick up a good sized property of around 100 square metres in size.
You probably hadn’t heard of gentrification since you did your GCSE geography all those years ago. Until recently that is, when the practice of “yuppifying” old buildings in cities like London and Lisbon became widespread. The trick is to find a pad in an area that is in the process of being renovated, before the prices soar. For example, the gentrification of former working-class neighbourhood Barrio Alto has changed it beyond recognition, making it more desirable and driving prices up.
The national housing price index reflects the impact gentrification is having on the Portuguese property market. Prices rose by 8% during the second quarter of 2017, compared to the same period last year, having already risen by 3.2% in the first quarter.
Plenty of people are keen to cash in on this long-term investment potential. Figures published by Portugal Statistics (INE) revealed the 37,000 property transactions made between April and June represented a 16.1% increase in sales compared to the same period last year, and around a 5% increase compared to the number registered in the first quarter. The total value of property sold during the second quarter was up 23.3% on last year, totalling €4.6 billion, of which €3.7 billion accounted for used homes.
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