A native of sunny Portugal, businessman Luis Horta e Costa has followed lucrative investment trends his entire career. He is a veteran in the real estate investment space and founder of Square View, a property developer and asset manager in Lisbon. He enthusiastically advises would-be investors to buy real estate in Portugal, as that market has been experiencing heady growth for several years.
“One must understand the size of the market in Portugal and the demand all around,” he says, noting that the market is significant, and demand is high.
Other hot categories in the country include technology startups and sustainability enterprises. Government foresight saved Portugal’s economy from the Great Recession by embracing new revenue streams.
Joao Borges de Assuncao, a professor at the Católica Lisbon School of Business and Economics in Lisbon, applauds Portugal’s ongoing economic recovery. He says it has made Portugal “a poster child for what could be done differently in the context of the European recovery.”
Luis Hosta e Costa, Says Areas Real Estate Continues to be a Hot Investing Area
The sea-trimmed country of Portugal attracts expatriates and tourists with its long history, rugged coastline, renowned surfing spots, delicious cuisine, and affordability. Bordering Spain and the Atlantic Ocean, Portugal offers a feast of natural beauty that includes the rivers, valleys, forests, and mountains of the north and vast plains that undulate across the south.
Due to its beauty and other factors, Portugal ranks among the top destinations for luxury buyers from the US. In 2022, Sotheby’s found that North Americans became Portugal’s most important sector of real estate investors. They rank first in purchasing luxury properties in Lisbon region, Portugal’s capital city and central economic hub. The country inspires property hunters with its eclectic housing choices, including luxurious villas, which are popular in Lisbon, farmhouses, warehouse-style apartments, and beachfront condos.
After Lisbon, Porto, Algarve, and Madeira are popular cities for real estate investors. Even though some buyers lament the rise in Lisbon’s real estate prices, there’s a silver lining. Global Property Guide research suggests that property in Lisbon is of exceptional value in terms of price-to-rent ratios. For those buyers who eventually want to retire in Portugal, these high-rental yields make them an ideal extra income stream – it’s a savvy way to pay off a mortgage for foreign homeowners who plan to retire in the country.
Other Popular Investment Sectors Include Technology and Sustainability, Says Luis Hosta e Costa
Portugal’s digital tech startup scene lures investors and entrepreneurs. After the government introduced the Tech Visa and Startup Visa, entrepreneurs and tech experts entered the country as freelancers and short-term employees. Since Lisbon real estate is more reasonable than European capitals elsewhere, tech talent can be enticed by reasonably priced housing.
According to a recent Hubs in Europe report by Startup Europe, Lisbon currently boasts 32 technology scale-ups comprising 47 percent of the city’s businesses. Lisbon is “one of the biggest hubs for startups in Europe along with London, Berlin, Paris and Copenhagen,” according to the EU Startup Monitor.
The technology sector gains highlight why the Web Summit chose Lisbon to host its event in the past and will do again in 2023. The event brings together people and companies redefining the global tech industry.
Portugal is ripe for investing in sustainability companies and organic goods. Sustainability is a new investment category, with companies making an effort to be environmentally sustainable. Sustainable investment funds exist in Portugal.
The category of organic goods has risen in popularity as Portugal’s government allocates more funds to develop Portugal’s agriculture and organic businesses. They are suddenly sprouting up all over the country.
Luis Horta e Costa Says Portugal Offers the Good Life for Less and a Sophisticated Talent Pool
Portugal is a safe country with a high level of political stability, which is one of the many reasons to invest in real estate in the coastal region. Luis Horta e Costa lists five reasons.
1. Workforce: Portugal’s English language proficiency is higher than Spain’s, France’s or Italy’s. Lisbon offers predominantly English-speaking employees who can be hired for reasonable wages.
2. Quality of life: Portugal is multicultural and offers excellent healthcare, schools and leisure.
3. Location: Portugal’s strategic location makes it an excellent home base to connect with countries worldwide.
4. Market and support: Europe’s 500 million people comprise a massive market for firms that desire European funding.
5. Infrastructure: Portugal’s highways, ports, and airports are well-ranked worldwide.
“What’s attractive in Portugal is the people, cost, safety, and weather,” Luis Horta e Costa says. “And the quality of the services is increasing a lot. Because there are a lot of foreign investors, the Portuguese must raise their quality of services. That’s why sometimes competition is good.”