Portugal has emerged as a hot spot for European real estate investors in recent years. Portugal’s combination of sunny beaches, rich culture, stable economy and favorable tax system has cemented its status as one of Europe’s most attractive markets.
Portugal offers many investment opportunities, but real estate investors often choose between the growing northern city of Porto or the southern metropolis of Lisbon. Porto has a vintage charm with a strong Port wine tradition, while Lisbon is a sprawling metropolis with a historic center and beautiful seaside views.
Portuguese businessman and entrepreneur Luis Horta e Costa is active in the Portuguese real estate market For decades. The co-founders of Square View operate their business from Lisbon and believe that both Lisbon and Porto have real attractions for the right investors.
Luis Horta e Costa In this guide, he shares his insights on investing in Porto vs Lisbon. Several real estate experts and foreign investors also share their insights for aspiring investors and property owners.
Investing in Porto vs Lisbon
history and life
Porto is best known for its important role in the wine trade. This port town has cobblestone streets and a vintage charm that attracts tourists, residents, and investors. Porto is much smaller than Lisbon, in fact Porto’s population of 214,000 is half of Lisbon’s population of 504,000. Porto’s small size gives it a more laid-back culture that balances the best parts of traditional and modern Portugal.
Lisbon, the capital of Portugal, is a bustling city. The seaside is visited by millions of tourists every year. Lisbon is a truly cosmopolitan city with first-class amenities and a vibrant culture. Although more populous and more vibrant than Porto, the city’s energy is one of the many reasons investors, tourists and new residents flock to the capital. “I love Lisbon because there are so many beautiful places to visit.” Luis Horta e Costa says.
Tourism and foreign investment
Both cities are tourist hotspots, but Lisbon has a slight lead in major tourist attractions such as Belém Tower and Jerónimos Monastery. However, Porto is not inferior to Lisbon, thanks to the famous Don Luis I Bridge and the Library.
However, northern Portugal is more popular when it comes to investing abroad. Jose Cardoso Botelho of Vanguard Properties said: “About 65% of our customers are foreigners or Portuguese living abroad. The majority of these sales are to people who want to live and work in Portugal.”
There are many foreigners investors and real estate buyers They say they were attracted to northern Portugal because of its affordable living, beautiful hills and tourist attractions.
John and Tara Newby are two foreigners who moved to northern Portugal from England. In an interview with Business Insider, John said: “Prices in Bristol have gone up so much over the last few years that we’ve acquired a large amount of equity in the land, enough to buy a farm here.” I had it.”
Tara added, “The initial idea was a lifestyle business or a vacation home. We thought about living there permanently, but since we moved back here, the longer we spend here, the more we like this place.” I did.”
Also read: 8 ways to start investing in real estate.
price trends
With a thriving wine industry and technology startups, Porto offers diverse employment opportunities and attracts a growing number of families to the city. meanwhile, lisbonAs the capital, it has a wide economic base including technology, tourism, and government.
With average property prices slightly more affordable than Lisbon, Porto is gaining momentum among foreign investors. Key regions such as Ribeira and Foz are particularly noteworthy for their investment potential. Porto offers competitive rental yields, but its real strength lies in the potential for capital value appreciation, given the city’s growing popularity and falling property prices.
Also read: What you need to know about real estate investing.
Despite soaring real estate prices, Lisbon districts such as Alfama, Baixa and Chiado remain in high demand due to their historic charm and central location. Although real estate prices are high, Lisbon’s rental market is strong, especially in the centre. His ROI here is more stable for real estate investors, but due to higher prices, yields may be slightly lower than in Porto.
At the end of the day, an investor’s return on investment depends on finding the right property and pricing it right. “You have to understand what the market wants,” explains Luis Horta e Costa.
Investing in Portugal’s future
Portugal real estate Thanks to domestic and international investment, it continues to grow rapidly. Choosing between investing in Porto and Lisbon depends on the investor’s preferences. Lisbon is more expensive but offers more opportunities. Although Porto has low prices and fewer people, its low prices may allow investors to expect prices to rise over time.
Portuguese real estate experts Regardless of where investors choose to purchase real estate, know that this country’s thriving market will continue to grow. This is mainly due to Portugal’s beautiful culture. “What I find more attractive about Portugal is the people. [cost of living], safe. And of course the weather,” says Luis Horta e Costa.
“We were looking at a lifestyle that would mean we could move out of the UK and spend more time outdoors, have better climate and space for our children to grow up a little more wild and free. ” Tara Newby added.
