PORTUGAL – A FERTILE REAL ESTATE MARKET
Portugal is rated by the OECD as one of the top countries in the world which is worth to buy and own real estate. It also attracts a lot of investors. The proposed investment policies have attracted domestic and foreign real estate investors. This country knows how to take advantage of this as an advantage. And Portugal is the ideal country for you and your family to start a new immigration life.
1. Current Portuguese real estate market
Portugal is a potential country that provides most of the economic services. Partly thanks to the presence of foreign investors, the economy is increasingly expanding. In which real estate is one of the most advantages of Portugal. The market develops very quickly and is transparent. Despite the impact of the pandemic, the number of properties for sale increased by 87.8% and the selling price also increased by 17.4%. According to market analysis report data for the first quarter of 2021. The supply of rental houses also doubled compared to the same period in 2020. Laws and lease agreements have also been introduced more freely. This is an advantage for investors.
2. Outstanding types
It can be seen that Portugal is very prominent in the real estate market. When investing here, the commercial real estate sector has brought many opportunities for development. In which, two main investment areas are parking and offices. Not only that, but the price of the rural real estate market is also attractive. This makes Portugal more competitive than many countries. Moreover, the housing investment sector here has greatly boosted the economy. Because the housing segment is flexible for both commercial and individual ownership. Housing can be flexible for the purpose of residence or rental for profit.
3. Asset management for investors – Portugal real estate
Besides investment, the management of existing real estate assets has been extremely attracted by investors. In Portugal, there is a rental property management service. Services include refurbishing, decorating, and finding tenants. In particular, the management will directly negotiate with tenants, collect rent, process contracts, and pay property taxes. This is a very convenient service for investors. The government has made general regulations for this type of service that change according to the rental period. Management fees range from 10%-15% of total income for long-term rental. This fee increases from 20%-25% when using short-term services.
4. Law on renting real estate in Portugal
Lease laws are put in place to maximize the rights of landlords. Since 2012, the house rental law has been updated by the Government. This law provides additional protections and rights for the lessor. Instead, tenants are given higher priority than before. The lessor can now unilaterally terminate the contract when the tenant fails to pay on time more than three times or is allowed to terminate the contract when notifying the tenant 2 years in advance. This is a right. investors and this has helped the rental real estate investment field develop year by year.
Here are some updates on the real estate situation in Portugal. Since then, it has also answered the question of why Portugal is rated by the OECD as one of the most worthy countries to live and invest in the world. Today, the investment program in Portugal through the Golden Visa is getting a lot of attention. Please contact Portico & Bridge for detailed support.
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