Posted on 25 November 2016
A range of positive data is persuading property investors to take a look at Lisbon. Retirees and expats from all over the world have been tempted by tax incentives and “golden visas”, while the city’s beauty has encouraged holiday home buyers. Here are our top five reasons why you should consider investing in Lisbon.
- Rising returns /H
In the Lisbon metro area property prices rose 3.7% last year, higher than the national average of 3.1%. Long-term rental yields in high-end Lisbon locations range between 5.4 and 6.2% according to the Global Property Guide, compared to yields in the Algarve of around 3.7%.
To help protect your investment from the potentially damaging impact of exchange rate fluctuations, it is advisable to seek expert market guidance from a currency specialist. You will be assigned a personal account manager, who can work with you to devise an effective currency strategy from the moment you put in an offer, right through to repatriating your rental income.
- Top TAP /H
Portugal’s national airline, that operates most flights out of Lisbon, TAP Portugal, was nominated for Europe’s best Business, Economy and overall Airline in this year’s World Travel Awards, the travel industry Oscars. So while there are plenty of budget options, at least you can treat yourself to the best when your investments rise in value.
- Big spending /H
The national government has also awarded Lisbon a €1.4 billion grant to spend on renovating its attractive old centre.
- Low living costs /H
When you need to check up on your investments, the costs can add up and dent your profits, so property buyers in Lisbon will be reassured by research by the British Post Office. In its 2016 City Costs Barometer, Lisbon not only emerged as the sixth cheapest out of 35 European short-break favourites, it was also the cheapest in Western Europe. The Post Office calculated 12 common weekend-break expenses and Lisbon came out at £134, compared to £280 in Barcelona and £300 in London. You can toast your capital growth with a beer (£1.02 for a glass).
- Revived resorts /H
Lisbon isn’t a huge city – it’s only a little bigger than Bristol – and it’s easy to get around. Even in its most attractive and historic locations however, prices are around €4,000 per square metre. Choose to buy outside of the city, and unlike London where the closest seaside is 50 miles away, in Lisbon it is on the doorstep. The resort of Quinta da Marinha, at Cascais, 20 miles outside Lisbon, has become the hot new destination with some dazzling new hotel and villa developments going up, and being busily bought up by Lisbon’s elite.
If you are keen to buy in Portugal, download your FREE Portugal Property Guide.