Portuguese Real Eestate Q1 Results
News Posted On: 16 June 2014
The real estate market in Portugal is improving with a slight increase in property prices. This recent resurgence has occurred within a stabilizing economy. House prices have looked a little better with an increase of 1.22 percent within the first quarter in 2014, this being the first hike in property rates since 2010.
With property prices at an all-time low, the market has opened up to several foreign investors looking to acquire land and houses in Portugal. With minimum restrictions on property ownership clauses for foreign nationals, in addition to reduced transaction costs, investors from various parts of the world, predominantly the United Kingdom, France, and China have sought out Portugal to build residences.
Overseas investor's appetite to improve in Portuguese property market?
Portugal has shown increased signs of recovery as commercial–property trades have tripled in the first quarter of 2013 according to financial analysts Cushman and Wakefield. Investments made in real estate properties for commercial use rose to around 161 million euros by June 2013, as compared to the 47 million euros accrued the year before. Projections in residential property investments also showed a 60 percent increase to 230 million euros.
As property prices are on a steady increase, far from its peak in 2007, Portugal makes for a excellent destination to currently invest in property. Making the most of this are overseas investors looking for comfortable luxury retirement residences. Approximately 3,500 citizens from varying countries made property investments in Portugal early in the first quarter of 2014 fiscal year.
About 14 percent of housing transactions made during the first quarter in Portugal were made by foreign investors from around the globe. Despite recent reticence in residence transactions, Portugal has long been a well-sought after destination with its natural beauty and cultural appeal in castles, ancient ruins and cobble-stoned streets and continues to be highly appreciated by retirees and tourists the world over. A quieter more relaxed environment to live in, Portugal presents a languid pace of life along with 100 percent financed apartments and houses.
Golden Visas attracts overseas investors
In an attempt to garner a stake in the market economy through the real-estate sector, the Portuguese government issued a Golden Visa scheme by which, foreign investors are allowed residency permits in exchange for buying properties in Portugal upwards in value of more than 500,000 euros.
The Golden Visa scheme was made public as prices on luxury homes began to rise. According to a survey conducted by the Royal Institution of Chartered Surveyors and Confidencial Imobiliario (CI), value of luxury homes showed an increase of about 54 percent to about 4,266 euros per square meter. Luxury home areas in and around Lisbon’s Baxia as well as Parque das Nacoes reported several sales.
This increase in the number of house transactions has generated a positive outlook for those currently involved in the Portugal real-estate market along with interested potential buyers. With the onset of the Golden Visa scheme more than 330 visas have been issued by the Portuguese government, bringing in around 225 million euros worth of income so far. January 2014 saw Portugal accrue a total of 27 million euros by awarding just 49 golden visas to investors from across the globe. The majority of investors include those from the UK, while the rest comprised of buyers from China, France, Brazil, South Africa, Russia, and India.
Written by Les Calvert
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