Investing in Lisbon

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Real Estate Balance

“Lisbon there are not many capitals by the ocean”

A country in which life is good all year long.

Once you visit Lisbon, you’ll want to be back. The seven hills city’s charm will make you get lost through its small streets or walk away from the busy places. In each corner of each street, its charm is there as if time would flow in another way. Life, there, is more quiet, less stressfull. These are testimonies from international businessmen who come here on short or long  stays or in acount for a foreign companies. Being on the ocean, Lisbon benefits from Atlantic winds which help the city to have a clean air, and less polluted atmosphere.

With a mild climate nine months a year, Portugal goes through, now, a kind of “rebirth” amongst the big urban areas like Lisbon and Porto. Lisboa will be, for sure, an even more attractive city in the years to come.( lien ……. The City Hall’s project, The City Hall )

The counties Commitment – The rebirth and gentrification of the big cities

The real estate obsession of foreign citizens for Lisbon and its countless esquisite historical and architectural buildings of the city’s downtown

The obsession of foreigners for real estate in Lisbon because of its historical and arcitectural heritage, lead to a massive investment in their qualified urban renovation by Lisbon City Hall ( including new squares and gardens, bike lanes and reducing the number of cars ) in colaboration with the real estate developers are incrising real estate prices. Lisbon’s gentrification will lead to an increase of real estate prices and capital value, which will be appreciated by investors in the future.

Discovering new horizons

Portuguese real estate market is overflowing in opportunities. For those living all year long, or for those who want to size the time to surf on real estate low prices. After 2013, 10 years of tax and fiscal benefits are possible, as long as one resides in the country at least 183 days per year ( according to portuguese fiscal law ). That fiscal benefit cannot be altered, once a retroactive law is against portuguese constitutional law. Besides, there a political consensus in Portugal about the economical advantages of this policy..

Living or investing in Portugal is possible regarding profit, once it offers strong long term opportunities as far as yield and value is concerned for foreign citizens who would want to invest in it ( see table ).

Since three years ago, the bigger investors are french, reaching 25% of the whole market and are amongst the more profitable owners. English are next but the exchange value of the pound over the euro threatens their investments. The comming of the “Visa Gold” Card with 500 000 € minimum credit available, literally increased real estate buying by several brasilian, chinese and arab, for example. Besides, on January, the 1st, 2013,  an agreement signed between France and Portugal establishes that french tax payers that reside in the country for at least 183 days a year, are free of fiscal charge over their wages.

That passion for Portugal is revealed in an increase of how much reat estate is worthing now, specially in Porto and Lisbon ( this last one, which I visit regularly since 20 years ago and where I invested myself in 2015 ). The patrimonial value increased 30% in 3 years time and there’s a tendency to increase 5% to 8% until 2018, according to experts.

 “In Lisbon, real estate price, new or renewed, is between 5000€ and 9900€ for square meter.”.

Amongst the old buildings, prices increased exponencially but, among the outer skirts, you may find one to be renewed for 1900 € for square meter. In the more residencial central areas of Lisbon downtown, Chiado, Príncipe Real and Estrela, you may have prices in between 3000 € and 5500 € if you want to have ( as any foreign citizen ) a good balcony with a nice view and a lift.

Areas and neighborhoods of Lisbon

The international  investors stick themselves to the hotelery industry or looking for industrial and commercial areas to turn them into offices, call-centers and to recover jobs from France and Germany in order to get qualified, young and multilingual workers.

This mane of new wages wil contribute to invigorate the residential real estate rental market and consumption in general.

Portuguese and Lisbon real estate market today

You can choose between old, renewed or new buildings under the european most recent construction guiding lines.

prix de l'immobilier euf à Lisbonne Price of New   prix de l'immobilier ancien à Lisbonne Price of old

“2008 market crisis didn’t spare Portugal from its consequences over the portuguese population. The fall of prices between 2008 and 2012 didn’t go further than  10% ( 25% registered at national level ). The country is now slowly coming out of several years of negative growth and budget austerity. Even that real estate business was not shaken, there are inevitable consequences. That fall might have been 10% to 12% at its worst in certain areas of the big cities like Lisbon and Porto, where the market stood quite stable in general, despite the hardship. Credit access stopped and portuguese midle class had trouble to buy properties and, then, turned to the renting market as it was forced by the market.”

Average prices of old and new buildings

Lisbon: from 1900 € / square meter in the outer skirts to 5000 € / square meter on the beautifull buildings on the central areas of Baixa and Chiado. Special reference to certain historical neighborhoods around Alfama, where is not hard to find it at less of 3000 € / square meter but an evaluation is necessary, since some of the buildings are mistreated due to lack of means and budget.

Oporto : from 1500 € to 3000 € / on square meter, on average.

In Algarve : In certain areas like Algarve or more remote places, there were even more remarkable price decreases of about 30% to 40% with a big amount of houses on sale but with no buyers for them. But, later, prices got up again. There is, still, a great gap between high class and low class area

By my experience – since I work as real estate developer for SFB ( Sale For Future Buy ) since long ago and after coming from scent and cosmetics international business, I rather like the new or qualified renewed residential areas.

 

Why choosing Portugal ? 

In France, real estate business is very structured but has the merit of protecting and listening the future owner about the general view about what he or she wants to buy ( Loi Carrez, according to the latest reports of AG, maintnance property book ). Besides, your notary has an contract agreement and administrative obligation to you which reinforces qualified choice of the property in question. Old real estate in Portugal can easily turn into a nightmare. It takes a good look on the quality of the structure of some old and badly renewed buildings. Many of the buildings of the central areas have tenants with very low rents and are very badly taken care of from lack of means and budget without any administration to be able to change that.  Buildings can be very noisy and with air conditioned badly instaled with no attention to the way it looks or even with electric wires everywhere like weed or satellite dishes abounding as warts on those buildings facades or balconies, for example. In many apartments, central heating isn´t available where rooms can be more than three meters high. It makes it very hard and expensive to heat it up – electricity and natural gas are more expensive in Portugal than in France.

The new building renovation projects are of very good quality, as far as construction details is concerned and has the builder’s achievement warranty, as well. That’s why I recommend you this kind of projects from companies like LIBERTAS, Maison au Portugal and my own confidential selection, on demand,, which were my personal choice.

Legislation in terms of energy saving ( 2008 ) or about sound isolation ( 2009 ) is similar to the one in France.

Anyway, there are excellent opportunities in the business as far as old buildings is concerned. But is necessary to be aware of its issues in order to make it not turn into a nightmare.It is required, also, to put the apartment in rental management with 25% of expenses.

At its basis, its an investment less volatile as time goes by than others and has the advantage of some guarantees.

Conclusion: investing in Portugal and in Lisbon ( in particular ) allows you to conciliate pleasant and rewarding investment. And you can profit any time you’d like.

 

 Checking and guiding advices

We do not take what we do as simply selling you a residential or investment real estate product but we’ll guide you through the process. Because we do not buy in the same way at 30 years old on a increasing patrimony basis or at 60, thinking on a well deserved retirement.

We advise you, to explain you the fiscal conditions in the context of real estate investment as resident or investor.

Our goal is to advise you and guide you through the process of choosing a property to buy on real estate investment context, new or old, in Paris or Lisbon, in order to optimize your investment on a long term vision.

Lisbon and Paris because we prefer the city with strong historical and touristic potentials on a gentrification context.

If you buy there, if you buy the address, the quality of the place guaranty you a large tourist rental demand.

Lisbon or Paris are dynamic capital cities where the culture scene is remarkable, where we can find schools and universities and good means of transport that work according to activ young urban citizens and international tourism demands, which ensures a high demand of places to rent all year long.

In conclusion, innumerable figures show that there are unique and wonderfull opportunities as far as portuguese real estate business is concerned.

5 Good reasons to invest in real estate in Lisbon

Common sense and professional monitoring is required at each step of your personal investment in that field.

In Paris as well as in Lisbon, bilingual counselors, notaries or lawers will be the answer to your questions as far as your patrimony is concerned, in order to optimize your investment.