Page 137 - Ocean Blue World Summer 2019 Edition

PORTFOLIO

owever, the secret may be out. After more than three
years of economic depression, Portugal’s recovery,
which began in 2014, has been rising ever since. In
Hthe Lisbon metropolitan area, property prices were
up by 7.2% in real terms in 2018 from a year earlier, to an average
of $1,717 per square meter and reportedly, house prices rose in 23
of the country’s 24 urban areas.

Porto recorded the highest increase of 15.6% during 2018, and
Sintra, close to Ericeira, went up 13.7%. During the last quarter
of 2018, Portugal’s house prices increased 2.03% in real terms from
the previous quarter. According to Moody's Investors Service,
the Portuguese housing market has upside potential, predicting
house price increases of between 7% and 8%, at least until 2020,
while the price to rent ratios also remain among Europe's lowest.

Indeed, Portugal’s housing prices continue to rise, strongly fuelled
by surging demand as well as improved economic conditions.
Property prices in Portugal rose by 5.39% in real terms year-over-
year in 2018, to an average price of $1,395 per square metre based Belem Tower
on figures released by Statistics Portugal (INE).

For foreign investors, Portugal sweetens the pot with no
restrictions on property ownership and generally low transaction
fees. Furthermore, Portugal will grant a five-year residency
permit to non-European citizens who buy a minimum of €500,000
worth of property. The permit allows holders to work, study,
and travel in Schengen countries with an option for permanent
residency after the five years.

So take your pick of breaks and visit the local real-estate agents
for your dream surfin’ home-away-from-home and catch a ride
on Portugal’s rising real estate wave.

Ericeira
Sources: Bloomberg, JLL report, INE, MIS and own research.

Lisbon

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