January 6, 2023

Lisbon, the most attractive city for real estate

Article by
Carolina Durão

As Lisbon is one of the most attractive places to make this kind of investment, take note of these 4 possibilities and see which one is more advantageous for you

Did you know that Lisbon is the 11th most attractive city for real estate investments?

Get to know 4 types of promising investments

Yes, it is true. The consultancy firm PwC, in partnership with the Urban Land Institute, conducted a study showing that Lisbon is the 11th most attractive, in the top 30 European cities, for real estate investment. 

According to this study, Lisbon was one of the European cities that benefited the most from the disruption caused by the Covid-19 pandemic, revealing that the Portuguese capital is bucking the trend in most markets, with strong international demand, despite a retreat of Portuguese investors.

Specialists believe that there are several factors for this phenomenon, namely the change in society's patterns and lifestyle after the pandemic, telecommuting, Lisbon's connections to transportation both nationally and internationally, the typically mild climate favorable to a comfortable lifestyle, and of course the low cost of living compared to other European capitals. Everything combined makes Lisbon one of the elected places for this type of investment. 

What is it, after all, and what are the benefits of real estate investment?

Making a financial investment - of whatever kind - is a way of investing money with a clear intention of earning a return in the future that is greater than the capital originally invested. One form of investment is, of course, in the real estate.  

Real estate investment is an excellent way to monetize the capital invested since through this investment one can build, sell, rent, or even resell the property in very advantageous conditions.

This is, therefore, a form of investment in which you buy real estate such as houses for rent, tourist exploitation, for commercial or industrial purposes (offices, consulting rooms, stores), among other possibilities. Thus, the capital can be mirrored in several areas, depending on the investor's interest. 

Learn about the four most common types of investments:

1. Investment in apartments for rehabilitation

Buying an apartment to rehabilitate and then selling it is one of the ways to invest in real estate. Besides the option of selling, this property can also serve as a rental, being a monthly source of income that will face the initial investment. 

What are the advantages of this type of investment?

2. Purchase of land for project approval

Buying land without an approved project is also a way to invest in the sector. You buy with the intention of approving a project and the sell it after its approval. In this case, the advantage and appreciation come from the approval of the project itself, which increases the value of the land.

3. Buying land to build on

Although it involves greater risk, buying land to build on can also be an option. In this case, the margins are around 30%, but you can get problems with your builder in terms of timings. If the builder cannot give you a timeline of the project, there's a greater risk in the capital invested.

4. Investment in planned developments

Finally, we are talking about the possibility of buying planned projects and reselling them when they are almost finished - which also adds to the value of the investment.

As Lisbon is one of the most attractive places, nowadays, to make this kind of investment, take note of these four possibilities and see which one is more advantageous for you and your medium-long term goal. 

You can count on Your Property Advisor to advise and guide you in this journey that is the real estate investment and acquisition in Portugal.

Your Property Advisor