9 July 2020
English
If you intend to buy a house in the Algarve, be aware that this is one of the best, most luxurious regions, visited by Portuguese and tourists from all over the world and suitable for real estate investment. Algarve is about two hours and forty five minutes drive from Lisbon and attracts thousands of people every year who want to visit or enjoy its wonderful beaches.
To buy a house in the Algarve you can choose from several types of real estate including apartments, duplexes, villas, rustic houses and farms or penthouses.
Nowadays, the Algarve has been living from the seasonality of the tourism sector , but now with the new initiatives and incentives from the Portuguese Government, it has become an increasingly sought after region for pensioners and even families and investors from around the world.
Finding a home to buy in the Algarve has been increasingly difficult due to the high demand from this region by foreign buyers / investors, overvaluing real estate. Nevertheless there are many advantages to buying a home in the Algarve which are presented below.
One reason for being a great place to live and vacation is due to the beauty of the region. The weather is exceptional, the beaches are beautiful with less cold water and few waves, good cuisine and stunning natural landscapes.
In terms of natural conditions (climate, natural beauty) combined with the conditions recently proposed by the Portuguese Government through various support and incentive programs, there are great business opportunities and very attractive tax benefits for several investors. The Algarve has one of the best temperatures in all of Europe during winter and can count on over 300 days of sunshine a year!
It has one of the cheapest living standards in Europe. The cost of living is noticeably lower when compared to other countries like France, UK, Spain, Italy or Germany, especially in real estate. However, it is the third richest place in Portugal, after Lisbon and Madeira.
In this region crime is almost non-existent, being inserted in the third safest country in the world and public and private medical assistance are equally accessible to both Portuguese and foreigners. It is close to everything needed, with good infrastructure such as motorways and Faro airport.
In the Algarve you will find more homes to buy than to rent. Real estate is inserted in one of the most expensive regions of the country to buy a house and hardly more affordable houses. At the rental level, most homeowners prefer and make more profit from renting the property seasonally, especially in the high season. As an example, during winter a property may have a rent value of 600 € per month. If you rent the same property in the summer season (June, July, August and September) you can be charged 600 € weekly rent.
Sometimes there is a question as to whether it is more advantageous to buy or rent property. Currently in Portugal, in any region of the country, if you have the money available for entry and financing conditions, it is worth buying a home in the Algarve. This is because the amount of the monthly lease will be much higher than the monthly installment, sometimes double.
There are many people looking for a home in Lisbon due to the supply and job opportunities, currently more in the vicinity because the property values in the city of Lisbon are increasing for both the purchase and the rental sector. However, although real estate market values have also grown in the Algarve, this region can be a great option for those who want to get away from the hustle and bustle of major cities such as Lisbon and Porto and buy affordable real estate with high profitability.
Acquisition and lease values may be 50% lower and in good condition compared to Lisbon but it should not be forgotten that Algarve also has prestigious luxury regions where values are not accessible to all.
Find out how you can invest with high profitability in this region, with so much potential in real estate!
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