Portugal’s pandemic proof property investment hotspots for citizenship via investment
Research by Astons, the international experts on real estate, residency and citizenship through investment, has taken a look at the Portuguese property market and how it has fared during the pandemic as it remains a popular choice for citizenship and residency investment.
Since the first reported case of Covid in March 2020, property prices across Portugal have climbed 3.7%, although this rate of growth is far higher in some pockets of the Portuguese market.
In Villa Real, real estate values are up 11.8%, with Aveiro (9.1%), Coimbra (7.7%), Viseu (7.6%) and Braga (4.1%) also enjoying above-average growth.
Évora has been the worst-performing area of the market, with real estate values falling -3.8% during the pandemic, although Guarda has also seen a drop of -2%. Portalegre and Castelo Branco have also seen a marginal decline at -0.2% and -0.1% respectively.
Portugal has become popular amongst many investors due to the lifestyle offering that appeals to those with families in particular. The Portuguese property market has become a particularly popular method of investment for achieving this lifestyle as it offers the opportunity to invest in residential or commercial real estate from €500,000, or €350,000 if the property is over 30 years old and requires renovation. There is also a reduced rate of 20% available in low GDP or sparsely populated areas.
Astons also dissected the Portuguese property market data based on stock availability to find where offered the best chance of securing a real estate investment opportunity.
The figures show that 36.1% of all homes currently listed for sale in Portugal fell at or beneath the €350,000 threshold. Lisbon was home to the highest availability of property stock at this price threshold at 58%, with Faro (52.5%) and Setúbal (33%) also ranking high.
Just 20.9% of all homes listed for sale in Portugal currently qualify for the €500,000 investment threshold. Again, Lisbon is home to the highest proportion of property stock with 39.4% of all homes listed for sale qualifying at this price threshold, with Faro again ranking high (32.3%). However, it’s Évora that completes the top three (18.4%) where €500,000 property availability is concerned.
Managing director of Astons, Arthur Sarkisian, commented: “Citizenship or residency via real estate investment is becoming increasingly popular as it provides a tangible asset that can be used to lay strong foundations in your nation of choice, or as an investment vehicle to generate further income.
With the pandemic causing a lifestyle shift amongst many investors, we’ve seen the Portuguese real estate market become a particular area of focus in recent months due to the lifestyle offering, the convenient geographical location within Europe and the relatively low cost when investing.
Of course, some areas will present a better level of capital appreciation on your investment, while others offer a greater abundance of suitable investment opportunities and so it’s important to research the market thoroughly based on your individual needs.”
Portuguese real estate market data sourced from Idealista
| Portugal districts – price residential sales (EUR per sq m) | |||
| District | Q2 2020 | Q4 2020 | Change |
| Vila Real | € 771 | € 862 | 11.8% |
| Aveiro | € 1,150 | € 1,255 | 9.1% |
| Coimbra | € 1,128 | € 1,215 | 7.7% |
| Viseu | € 821 | € 883 | 7.6% |
| Braga | € 1,034 | € 1,076 | 4.1% |
| Santarém | € 770 | € 796 | 3.4% |
| Porto | € 2,073 | € 2,140 | 3.2% |
| Faro | € 2,295 | € 2,368 | 3.2% |
| Setúbal | € 1,642 | € 1,690 | 2.9% |
| Beja | € 764 | € 777 | 1.7% |
| Viana do Castelo | € 1,015 | € 1,032 | 1.7% |
| Bragança | € 751 | € 761 | 1.3% |
| Leiria | € 1,124 | € 1,137 | 1.2% |
| Lisbon | € 3,317 | € 3,346 | 0.9% |
| Castelo Branco | € 696 | € 695 | -0.1% |
| Portalegre | € 645 | € 644 | -0.2% |
| Guarda | € 641 | € 628 | -2.0% |
| Évora | € 919 | € 884 | -3.8% |
| Portugal | € 2,070 | € 2,147 | 3.7% |
| District | Total property stock | Property stock from 350,000 EUR | % of total stock | Property stock from 500,000 EUR | % of total stock |
| Lisbon | 44,894 | 26,047 | 58.0% | 17,691 | 39.4% |
| Faro | 29,837 | 15,669 | 52.5% | 9,644 | 32.3% |
| Évora | 1,918 | 498 | 26.0% | 352 | 18.4% |
| Porto | 35,892 | 11,355 | 31.6% | 5,592 | 15.6% |
| Setúbal | 16,223 | 5,349 | 33.0% | 2,229 | 13.7% |
| Beja | 1,737 | 301 | 17.3% | 190 | 10.9% |
| Leiria | 7,293 | 1,447 | 19.8% | 625 | 8.6% |
| Portalegre | 1,585 | 203 | 12.8% | 121 | 7.6% |
| Viana do Castelo | 4,601 | 795 | 17.3% | 339 | 7.4% |
| Braga | 10,129 | 1,631 | 16.1% | 672 | 6.6% |
| Santarém | 6,090 | 752 | 12.3% | 388 | 6.4% |
| Vila Real | 1,306 | 145 | 11.1% | 75 | 5.7% |
| Aveiro | 9,604 | 1,618 | 16.8% | 490 | 5.1% |
| Bragança | 771 | 76 | 9.9% | 37 | 4.8% |
| Viseu | 3,475 | 345 | 9.9% | 151 | 4.3% |
| Coimbra | 7,325 | 931 | 12.7% | 265 | 3.6% |
| Castelo Branco | 2,707 | 151 | 5.6% | 77 | 2.8% |
| Guarda | 1,033 | 63 | 6.1% | 28 | 2.7% |
