The current crisis afflicting Portugal is creating a number of new investment opportunities, and the country’s appeal to overseas investors is increasing. The tough austerity measures have meant that many Portuguese homeowners have had no choice but to sell up completely or to downsize, and the recent budget will not help this situation.
Lack of access to financing is preventing those who are still financially stable from buying. All this has placed downward pressure on house prices, even in areas such as the Algarve which have traditionally been more expensive and in demand with overseas buyers. Even though the number of properties on the market is plentiful, it hasn’t been caused by overbuilding, and Portugal may well be a much better risk than other countries facing similar problems with their economy, such as Spain.
The key to investing in any foreign country is always to research the market and area thoroughly, and to learn as much as you can about property in the region. People considering living in Portugal full-time may be better off renting first of all, to really get a feel for the area.
Some areas are particularly good for retirees, while others such as Lisbon and Porto may be more suitable for those investors who hope to rent out their property. Buying property in Portugal is relatively straightforward, but it is important to have assessed whether the property is correctly priced, and to employ a good solicitor who is able to give the correct advice on taxes, procedures and other necessary legalities.