{"id":10407,"date":"2014-07-16T10:31:16","date_gmt":"2014-07-16T02:31:16","guid":{"rendered":"http:\/\/www.imoney.my\/articles\/?p=10407"},"modified":"2024-04-19T13:54:23","modified_gmt":"2024-04-19T05:54:23","slug":"its-time-to-sweep-into-the-portugal-property-market","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/its-time-to-sweep-into-the-portugal-property-market","title":{"rendered":"It’s Time To Sweep Into The Portugal Property Market"},"content":{"rendered":"

\"carvoeiro_town_algarve_portugal_crsl\"<\/a><\/p>\n

The economic rollercoaster ride for most countries in the Europe isn’t new, with some markets having bumpier rides than others.<\/p>\n

While this is usually bad news for most, it could mean good news for investors as this could be their window of opportunity to attractive investments at a lower price. According to Cushman & Wakefield Inc., a New York-based property broker, the Portuguese property market was one of the hardest hit markets in that region, with investment in commercial property dropping by 50%, but is now showing signs of improvement, at least for the next two years.<\/p>\n

Before the 2008 financial crisis, Portuguese properties were some of the highest valued in the region and also the most popular among British buyers looking for a holiday home. However, values have since declined throughout the crisis sending the country into an economic turmoil.<\/p>\n

So, is 2014 the year for Portugal to rejuvenate its real estate market? Experts seem to think so, and the best time to get a piece of the pie is now, before the market picks up even further.<\/p>\n

<\/span>There\u2019s no better time than now<\/b><\/span><\/h2>\n

Investment is all about timing \u2013 especially when it comes to the real estate market. When it comes to properties it can quickly skyrocket to an unaffordable level (see the real estate market in Malaysia).<\/p>\n

To encourage more foreigners to put their money in the country, Pedro Passos Coelho’s government introduced the Golden Residence Permit Programme<\/a> in October 2012. Foreigners purchasing property worth more than \u20ac500,000 (about RM2.2 million) would qualify for a five-year visa to Portugal and the Schengen area, and eventual Portuguese citizenship.<\/p>\n

With this golden visa programme, coupled with the current market outlook there, many from the middle to higher income groups of emerging countries, are looking to diversifying their investments into the country.<\/p>\n

According to the Portuguese foreign ministry, quoted by AFP<\/i>, 356 residence permits have been granted to investors, including 279 Chinese, 16 Russians, 10 Brazilians and nine Angolans.<\/p>\n

<\/span>The market outlook<\/b><\/span><\/h2>\n

After more than three years of decline in the real estate market, Portugal is now recovering with an increment of 1.22% in 2013 up to the first quarter of 2014, translating to an average of \u20ac993 (RM4,352.63) per square metre. According to Statistics Portugal<\/i><\/a>, this recorded the first year-on-year hike in price since the third quarter of 2010.<\/p>\n

Though it is not the only country in the European Union to offer this golden visas scheme, it is one of the few countries who have shown to be able to recover from the recent economic crisis and to be capable of offering a more robust property market in the years to come.<\/p>\n

According to Fitch Ratings in a January 2014 report, Ireland, Portugal and the UK are the markets with the most improved outlooks, making now the best time to invest before the market improves further.<\/p>\n

\u201cThis is partly in step with the economic recovery for a number of countries but also as a result of government and central bank policy changes which are boosting supply and demand for residential mortgages and housing. The outlook has improved most notably for markets in Ireland, Portugal and the UK,\u201d says Gregg Kohansky, a managing director at Fitch to The Telegraph<\/i><\/a>.<\/p>\n

According to 2013 Rightmove Overseas Consumer Survey<\/em>, Portugal has consistently ranked as the top five investment choice for buyers from Britain, Ireland, America, Russia, Germany, Sweden and France.<\/p>\n

With more foreigners investing in the Portuguese real estate market, the market is set to pick up, depending on the areas.<\/p>\n

<\/span>Where are the hot spots?<\/b><\/span><\/h2>\n

Different cities and municipalities experience varied price growth with some growing fast and others remain struggling. Some of the key areas that see the biggest leap in 2013 to Q1 of 2014 are:<\/p>\n