Summary:
Israeli investors are purchasing multiple apartments in Portugal at competitive prices.
Youropa Real Estate manages over 657 properties in Portugal, facilitating foreign investments.
75% mortgage options make property investment accessible for non-residents.
Rental yields of 10% or more are common in the growing market.
Recent economic recovery in Portugal is leading to increased foreign investments.
Incredible Investment Opportunities in Portugal
The numbers are staggering. Imagine purchasing an apartment "on paper" for one million shekels (approximately USD 272,000), securing up to 75% mortgage at an interest rate under 4%, and only starting repayments once the apartment is delivered, with potential rental yields of 10% or more.
Attractiveness to Investors
While Portugal is no longer the bargain it once was, it remains appealing to Israeli investors of all kinds, including not just businessmen but also retirees and young professionals. However, potential buyers must consider high taxes and the risk of a plateau in rising apartment prices due to the current economic situation.
Rising Prices and Government Initiatives
The high apartment prices in Israel have prompted many to seek affordable options in Portugal. In response to rising housing prices, the Portuguese government has initiated programs aimed at combating this trend.
Real Estate Growth
Since 2016, the Portuguese real estate market has flourished post-economic crisis, with Lisbon and Porto being prime targets for investors. The market offers several advantages, but risks are also present.
The Investment Landscape
Youropa Real Estate, founded by a group of partners, currently manages 657 real estate assets across 86 projects in Portugal, with an investment volume exceeding 164 million euros. They assist investors with everything from property selection to financing solutions.
Foreign Investment and Mortgages
Portugal is one of the few countries that allows foreign buyers to obtain up to 75% mortgages, making it an attractive option for those looking to invest abroad. The market is experiencing significant appreciation; for instance, an apartment purchased for 260,000 euros in 2022 was appraised at 415,000 euros by 2024.
Local Impact and Community Relations
While real estate investments are booming, they can affect local residents, particularly young couples struggling to afford homes. However, many locals recognize the economic benefits of foreign investment.
Who is Buying?
Investors range from tech employees to retirees, with many Israeli families now purchasing property in Portugal. Celebrities like Madonna and Scarlett Johansson are also among the buyers, highlighting the allure of Portuguese real estate.
Economic Overview
Portugal's economy is recovering, with GDP growth projected at 2.1% for 2024. The government is working to attract foreign investment by gradually reducing corporate taxes to 15% by 2027.
Taxation and Regulation Changes
The new government plans to revoke some short-term rental restrictions, allowing for a balanced approach to tourism and local needs. Despite high taxation on real estate investments, the low interest rates and favorable mortgage terms continue to attract buyers.
Conclusion
With a combination of favorable market conditions and government support, Portugal remains a promising destination for real estate investment, especially for international buyers.
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