Lisbon: Portugal’s top investment destination named the ‘California of Europe’.
11 November 2016
High rental returns, low property prices and country-wide buyer incentives continue Lisbon’s resurgence, with one property site labelling Portugal’s capital the ‘California of Europe’.
Lisbon is Portugal’s business and cultural hub, and the most popular tourist destination in the country. The property market has been experiencing remarkable recovery since 2013, and is now one of the country’s most sought-after destinations for property ownership.
Celebrated for brightly coloured buildings, narrow cobbled streets and its coffee culture, Lisbon is instantly recognisable. Home to a lively art scene, a newly flourishing tech industry and a young, ‘trendy’ vibe in recent years, the city has been penned as the ‘new Berlin’. Others have called it the ‘Barcelona of the 1990s’ and, most recently, Homes & Property named the city the ‘California of Europe’.
Homebuyers and property investors from all over the world continue to flock to Lisbon each year, taking advantage of the affordable property prices left behind after the financial crisis, impressive rental returns and rising property values. According to recent research, sales volumes rose a remarkable 130% last year, with 95% of this made up of overseas buyers.
Earlier this year Savills international published a spotlight report on Lisbon’s prime residential property market that investigates why Lisbon is attracting such a diverse international purchaser base. With Lisbon’s market recovery well underway, official forecasts have predicted that property in Lisbon will be one of Europe’s best performing asset classes well into the next decade.
Download the complete report here.
While prices are currently affordable, the growing popularity of the city means this may not be the case for long. Prices in the city rose 22% in 2015, with this trend continuing through 2016. As such, buyers are experiencing outstanding rates of capital appreciation as the value of their properties skyrocket.
Alongside the unique benefits of purchasing property in Portugal’s capital, since 2013 the Portuguese government have made things even sweeter for overseas buyers, by introducing the Golden Visa - Europe’s most successful Citizenship by Investment programme, and the revered Non-Habitual Tax Residency regime, which effectively allows investors to live in the country tax-free for 10 years subject to meeting the required criteria.
It is these benefits, combined with Lisbon’s currently affordable but rising property prices, high rental returns and unrivalled potential for capital growth which have made the city one of Europe’s top destinations for property investment.