News Archives — Page 2 of 2 — Mygrate Investments

Lisbon is looking up

Willem Maritz
2 Jul 2020
1:54 pm
0 comments

BASED ON LISBON INSIGHTS 2019

BY OLIVER BANKS AND ALEX KOCH DEGOOREYND

KNIGHT FRANK’S PORTUGAL TEAM

Why is Lisbon currently in the spotlight?

In 2019, Lisbon was ranked the best city in Europe for investment and development prospects by PwC, up from 11th place in 2018. Solid economic fundamentals, affordable prices, a low cost of living and improving transport connections mean it is now an international destination for investors, developers and tourists alike. The city has also seen the arrival of a number of international developers in recent years which has boosted market sentiment.

What government incentives are appealing to overseas buyers?

Introduced in 2009, the government’s Non-Habitual Residency (NHR) initiative allows anyone who has not been resident in Portugal for the past five years to receive pension income, rental income, capital gains on real estate and non-Portuguese income tax-free. The NHR is valid for 10 years.

Although Golden Visas are common in a number of southern European economies, Portugal’s scheme, which started in 2012, has been one of the most popular. Since this time, over 7,291 residence permits have been granted to non-EU residents. There are different ways of obtaining residency, 6,879 opted to purchase real estate (via an investment of €500,000 or more), 397 transferred capital and 15 created a minimum of 10 jobs. The latest data shows Chinese, Brazilian and Turkish buyers have been the most active applicants.

It’s also worth noting there is currently no inheritance tax, gift tax or wealth tax in Portugal.

Portugal is safe, picturesque and offers new experiences around every corner.

Which areas are prime locations?

Built on seven hills, Lisbon offers a mix of neighbourhoods, each with a distinct feel. The Avenida da Liberdade is the central spine of the old town running down to Baixa, the historic quarter, providing easy access to theatres, restaurants and the waterfront. The upmarket district of Chiado, the city’s cultural heart has largely been rebuilt following a fire in 1988 and with prices now close to €10,000 per sqm the area generates some of the highest premiums in the city.

To the west sits Belém, a quieter district with a village-like feel, overlooked by the Ajuda National Palace. Once home to dockyards and warehouses the area now offers green space, parks and plazas.

The coastal town of Cascais, located 30 km to the west of Lisbon, is a second home retreat comprised of detached villas, world-class golf courses as well as good international schools.

Where is demand coming from?

International demand is strengthening with Brazilian, Turkish, French, English and Chinese buyers on the rise. Portuguese buyers are also active as domestic wealth is increasing. At 6.4%, unemployment is at a 17-year low and the Portuguese economy has exceeded the Eurozone’s average GDP for the last four years.

Tourism too is on the up with the number of international visitors to Lisbon reaching 4.5 million in 2018 providing a source of rental demand for those seeking an investment property. There is a noticeable lack of rental stock which is driving the investment sector with gross residential yields of around 6% achievable in the city centre and 8% in the city’s outskirts.

What investment is planned?

With three tech parks, 90 higher education institutions, two universities and a vibrant start-up scene, Lisbon is emerging as one of Europe’s creative hubs. To meet this demand, the city’s transport infrastructure is being upgraded. Due to open in 2022, the new Monitjo Airport will service 50 million passengers per annum, up from 28 million at present.

A €210 million Metro project is underway which will result in two new underground stops and the regeneration of Cais do Sodré, the city’s main transport hub for trains, the metro and ferries. A €210 million Metro project is underway which will result in two new underground stops and the regeneration of Cais do Sodré, the city’s main transport hub for trains, the metro and ferries.

(END OF ARTICLE FROM LISBON INSIGHTS 2019 BY OLIVER BANKS AND ALEX KOCH DEGOOREYND)

Lisbon’s underground is part clockwork, part work of art.

Portugal’s many benefits for investors

Portugal’s success is a credit to years of responsive policy making and the government’s commitment to sound fiscal management and a proactive approach to preventing social ills. Like any foreign investment, there are cultural and regulatory barriers to overcome, and having a partner on board to guide you across the way is essential.

Mygrate—simplifying investment

Mygrate’s reason for being is to assist South Africans and people from all nationalities to make investments in the EU with confidence and peace-of-mind. We do the diligence, you reap the benefits. If you’re considering a move, why not set up a Zoom meeting with Joanne to discuss the possibilities further? Citizenship by investment starts at €350,000 for investments in regeneration projects in older districts, and €500,000 for new builds.

Portugal weathering the Covid crisis

Lisbon’s property market shows signs of positive response to the COVID crisis.

Lisbon is looking up

In this post we explore the outstanding potential of Prata Riverside Village, combining waterfront tranquility with urban convenience.

Europe’s Hottest Property Market Is Getting Too Hot for Some

Based on the article Why Portugal is too hot for some by Henrique Almeida for Bloomberg Portugal is sticking with its golden visa program even though locals are being squeezed. Ana Guerreiro points across the street at a handful of housing projects in Lisbon’s up-and-coming riverside neighborhood of Marvila. It’s where she moved in with her mother last year […]

Portugal weathering

the Covid crisis

BASED ON THIS ARTICLE

BY NATASHA DONN

FOR PORTUGAL RESIDENT

Lisbon’s prime residential property market is set to weather the crisis caused by Covid-19 with an upward bounce.

Analysis by property specialists Knight Frank identifies Lisbon along with Monaco, Vienna and Shanghai as the “only four major prime residential markets set to see growth throughout the remainder of 2020 as the impact of Covid-19 takes its toll on luxury residential property markets around the world”.

Knight Frank’s research was based on projections for demand and supply, the impact of Covid-19 in the different markets of cities analysed and “the varying government stimulus measures announced”.

Not mentioned in the report was the fact that due to the pandemic, Portuguese government plans to suspend its Golden Visa programme in Lisbon have been put on hold. The programme has proved a magnet to buyers from all over the world since 2012, and can now continue to reel investors in.

As Knight Frank observes, however, “the scale of global economic uncertainty is unprecedented and therefore putting an exact figure on forecasts is challenging”.

The study chose ‘four price bands’ in which it placed the 20 cities under analysis: strong price growth (+5% or more), low price growth (0% to 5%), flat or low price falls (0% to -5%) and strong price falls (-5% or less).

Pre-Covid, Knight Frank was buoyant for various prime markets, including Paris, Geneva, Berlin, Miami and Sydney, “but unsurprisingly Covid-19 has put a halt to all that”, Liam Bailey, the company’s global head of research explains.

Of the 20 cities Knight Frank analysed, 16 are now likely to see prime price declines through the rest of the year, “with only a handful” (Lisbon being one) “avoiding a fall into negative territory – either because of historic supply shortages or because transactions were able to continue during lockdown and these measures are already being eased,” he said.

This is also seen as good news for the Algarve, according to estate agents the Algarve Resident has been in touch with who expect this trend to reflect on the southern property market which has maintained a high level of interest in spite of the pandemic.

The sun goes down and the streets come to life. Lisbon has a nightlife that can only be experienced to be understood.

Investing confidently in Portugal’s property market

If you’re considering your options and would like to know more about Portugal’s Golden Visa programme, or want to diversify your real estate portfolio with quality property options that deliver great returns, why not set up a Zoom call with Joanne Potts today?

Mygrate provides salient advice on the Portuguese property market through research, on-ground inspection and market trend analysis. Investments begin at €350,000 for investments in property regeneration of old buildings, and €500,000 for new builds.