Property prices in Portugal. Portugal’s economy contracted 0.9% in 2013, 4.1% in 2012, and 1.7% in 2011, according to the International Monetary Fund (IMF). Good rental yields are also to be had from villas in Lisbon ranging from 5.45% to 6.05%, and again the rule is the larger the villa, the lower the yield. Global Property Guide’s Lisbon square metre house price research finds that Lisbon city-centre prices are higher, at around €2,500 (US$2,790) per square metre for 120 sq. House prices rose by 4.5% in 2015, 4.8% in 2016, 4.6% in 2017 and 6.1% in 2018. The property market in Portugal continues to go from strength to strength, with now being a great time to purchase home here. Villas in the Algarve rent for around €6 to per sq. How much rent can be earned from Portuguese property, compared to the rest of Europe? ATTENTION This site uses cookies. Portugal property portal, Imovirtual, reports that Portugal's real estate market has experienced a notable decline; a first in eight months. Apartments in Lisbon continue to obtain good rental yields, ranging from 4.5% to 6.7%, according to the Global Property Guide research. Landlords felt the new laws were long overdue. m. and €1,430 (US$1,596) per sq. The new legislation also includes a special procedure on evicting tenants who do not vacate the property on the specified date by the court or the contract. m. apartment. In terms of price to rent ratios, Global Property Guide research suggests that Lisbon is exceptionally good value.eval(ez_write_tag([[250,250],'globalpropertyguide_com-large-mobile-banner-1','ezslot_10',145,'0','0'])); After continuously declining from 2012 to 2015, interest rates on housing loans have been almost unchanged in the past four years. The public debt is expected to fall to 117.1% of GDP in 2020 and to 113.7% of GDP in 2021. There is now a procedure for revising rental values: (1) landlord proposes a new rent to the tenant; (2) the tenant accepts or suggests a counterproposal; (3) if no agreement is reached the agreement may be terminated, and the landlord pays five years´ worth of rent as compensation. Portuguese house prices, rents, and letting income - real data! Follow the latest developments in the international property markets through the Global Property Guide newsletter. The Portuguese mortgage market is extremely sensitive to interest rate changes, since about 65% of new mortgage loans issued last year have variable interest rates or initial rate fixation of less than one year, according to the European Mortgage Federation (EMF). Get GPG fortnightly newsletters delivered to your inbox. Algarve, which is known for its Mediterranean beaches and golf resorts, had the most expensive housing in Portugal, with an average house price of €1,736 (US$1,938) per sq. If a period is not defined in the contract, the lease is assumed to be set for two years, which can be renewed automatically. This result, which represents an increase of 27% compared to the first half of 2018, allows us to foresee a In Lisbon metropolitan area, property prices were up by 9.5% (9.2% in real terms) in November 2019 from a year earlier, to an average of €1,631 (US$1,816) per sq. Enter your login email address and instructions for resetting your password will be sent. Located in the south western part of Europe, Portugal's inclusion into the European Union has seen a significant boost in its economy. m. apartment in Algarve is priced around €1,800 (US$2,009) per sq. However, the real estate market in Portugal has not grown exponentially since the 2000s, unlike many European markets. Modest to minimal house price increases were seen in Cascais (5.6%), Santa Maria da Feira (4.5%), Porto (3.3%), and Lisboa (0.5%). m. Portugal’s house price to GDP per capita ratio is one of the lowest in Europe, according to Global Property Guide research (see table). Things were improved by Law 31/2012, passed on August 14, 2012, which gave more rights to landlords. Portugal at World Property Journal - World Property Journal is the leading source of Real Estate News for domestic and international markets. Algarve, is a region blessed with the most Awesome Beaches, Stunning Golf courses, Picturesque Countrysides and Fishing Towns and a Glorious Climate, all of which combine to create the perfect Holiday, Permanent Living or Investment destination. Homes For Sale in Lisbon, Portugal | CENTURY 21 Global. {{/if}} Portugal’s housing prices continue to rise strongly, fuelled by low interest rates as well as improved economic conditions. JLL and Morais Leitão thus partner up to provide the best possible information on market practices and legal and tax issues, aiming to facilitate the investor approach to our market. This report provides insight on the key trends that our experts think will affect the European property industry over the coming year. Inflation stood at 0.4% in December 2019, down from 0.7% in December 2018 and 1.5% two years ago, according to INE. The real estate market in Portugal in 2020 started strongly, however, according to the study, over 90% of the professionals surveyed felt a drop in the number of people thinking of buying property at this time. As a reminder, the rental yield is the total percentage return you would earn as a landlord, when renting out your property. Search for real estate in Lisbon, Portugal and find real estate listings in Lisbon, Portugal. If we were to take account of inflation, these price declines would be larger (and the increases would be smaller). Strong increases were also seen in Lisbon (29.7%), Alentejo (19.8%), Norte (19.5%), Algarve (12.7% and Centro (4.5%). The International Monetary Fund (IMF) has warned that there are signs that significant “imbalances” are accumulating in “some areas” of the real estate market in Portugal, following concerns voiced by the Bank of Portugal (BdP) last month, which said that “in the second half of 2017 there were signs of some overvaluation” of property prices. There are 13,627 real estate listings found in Portugal. Tailor your overseas property investment strategy! It is expected to fall further to 5.9% this year and to 5.6% in 2021. The Algarve is wonderfully varied, able to appeal to a wide cross section of communities, enticing young and older to come play, relax and LIVE!! The Portuguese housing market is expected to remain buoyant this year, with Moody’s Investors Service predicting house price increases of around 4% - a slowdown from last year’s strong price growth but still one of the biggest increases in the region. Changes in the law include the following: The new law also strengthens the landlord’s ability to terminate a lease agreement: The law aims to update the rents of older contracts, as well as amending the Law 6/2006 or the New Urban Lease Act (Novo Regime de ArrendamentoUrbano - "NRAU") - an attempt to solve old lease issues. Portugal still faces a huge public debt burden of around 119.5% of GDP in 2019, though this is an improvement on 130.6% in 2014. @ 2004-2020 Global Property Guide. Portugal needed 10 years to recover from the world crisis. Get monthly informed analysis on world property markets and exclusive, early access to investment opportunities delivered right to your inbox. Portugal has one of the highest owner-occupation rates in Europe, partly caused by generous government mortgage subsidies having helped push up owner occupation from 52% of all housing in 1981, to 74% in 2013 and finally to about 75% last year. 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