Porto is unquestionably a desirable market for real estate investment. The region has a high standard of living, a stable social climate, affordable labor, exceptional talent, and excellent communication and infrastructure. The city is investing more in renovations, is well-known globally, and is drawing investors from all around the world.
For those considering investing in Lisbon, Porto may be likened to the capital five to ten years ago. Because the city still has a cheap cost per square meter, investors may expect the best capital appreciation in Portugal.
If you want to invest in Europe but aren't sure where to start, Porto is certainly the place to go. We discuss five reasons why investing in this city is a good idea. But first, let us explore some extra details regarding the Porto real estate market.
Is Porto experiencing a housing market bubble?
In general, the housing market in Portugal's largest cities is undergoing a bubble. This trend has been going on for a few years, thanks partly to the Golden Visa program and the recent surge in tourism in Portugal.
Lisbon was ranked as one of the top six cities in Europe for investments in 2019, but most of the finest property offers have already been scooped up, and the next hot spot in Portugal to invest is Porto, where home prices are still 30% lower than in Lisbon. Although Lisbon has the most inflated property prices, Porto's rent prices and property valuations have also increased significantly.
Is now a good time to buy real estate in Porto?
It's a fantastic time to buy real estate in Porto since the current trend indicates that prices will continue to climb for the foreseeable future. Unfortunately, it's also a seller's market right now, so if you find a fantastic bargain, you should close it as quickly as possible.
Can Foreigners Purchase Property in Porto?
Foreigners can purchase property in Portugal with no difficulty. Non-Portuguese nationals do not need to fill out any additional papers to purchase property in Portugal. However, to avoid frauds and ensure appropriate legal paperwork, it is best to hire professional realtors and attorneys.
Why Investing in Porto Real Estate Makes Sense
Increased foreign tourist numbers have aided Porto's expanding economy in both the low and high seasons in recent years. Porto attracts international visitors who come to see the city's rich historic center, cultural activities, and lively environment.
The city's underdeveloped region has been increasing over the past two years. The French and Brazilians are the most frequent visitors to the city. Porto has been awarded the European Best Destination Award three times, in 2012, 2014, and 2017.
Porto has solidified its status as a smart tourist destination, leveraging communication technologies to shape and assess visitor service offerings. At 10.3 percent, Porto had the highest revenue per available room (RevPar) rise in Europe last year.
Golden Visa Program
The Portuguese government established the "Golden Visa" scheme in 2012 to encourage international investment. Its members will be able to work and get temporary residency permits in all Schengen countries and have full access to the public health and education systems. It operates as a fast track to a European passport through real estate investment. You may be eligible for permanent residency after five years. Since the program's inception, approximately €4.5 billion has been invested in the country.
Comprehensive Public Transportation System
As one of the oldest European cities, Porto is well-linked. Porto has a 22-mile metro system and an international airport hub that handles continental and intercontinental flights, with high-speed trains linking it to Lisbon.
High Standard of Living
Porto and Northern Portugal's low cost of living, stable social atmosphere, and mild Mediterranean climate are drawing entrepreneurs, digital nomads, and investors from all over the world. The area is regarded as a safe and inviting vacation spot with a varied cultural offering.
Renovation Attracts Investment
Porto's historic center has been restored. This has certainly piqued foreign investors' interest. As a consequence of the funding, the city has been able to continue its redevelopment initiatives.
This cycle indicates that there are more investment prospects in Porto's downtown area and the success of beneficial initiatives for people who select this city.
The Bottom Line
Buying property in Porto is a good investment right now, though some analysts feel the property market in Porto is still a bit risky. But any seasoned investor understands that any move worth making has some risks attached. Pay close attention to market patterns to determine when to purchase and when to sell. Whatever you choose to do, don't put off deciding for too long.