Main image: "Youropa's latest development "Riverline" ab the beach, at Seca do Bacalahu, Porto" - Credits: Youropa group
"The demand for properties in cities like Porto exceeds the limited supply, significantly contributing to the continuous rise in prices," explains Mr. Amir Talmi, CEO of Youropa Real Estate Portugal.
Thanks to beautiful beaches of clear waters, bustling urban centers of culture, cuisine, and friendly residents - it's no wonder Portugal has become the focal point for tourists from all over Europe and the Americas. Yet, alongside the continuous flow of tourists to Portugal, another type of visitor is also flocking - real estate investors.
In recent years, Portugal has emerged at the top of the list of favorite countries for real estate investors worldwide. A long line of leading international real estate publications and international economic research institutes have highlighted Portugal as a particularly attractive investment destination. Portugal has enjoyed a significant rise in real estate prices in recent years, benefiting both foreign and local investors alike.
The reasons for the influx of foreign investors to Portugal are varied. The European country enjoys an exceptional growth in the technology sectors, and the migration of educated populations encouraged by the state and authorities. In recent years, especially since the coronavirus pandemic, Portugal has positioned itself as a sought-after destination for remote work, primarily for high-tech workers and digital nomads. This strengthens the local economy and contributes greatly to it.
When it comes to numbers, there's no doubt that the real estate sector in Portugal has experienced unprecedented growth. The Global Property Guide website published a comprehensive analysis of the performance of the Portuguese real estate sector earlier this year, pointing to a double-digit increase in value over recent years. From November 2021 to November 2022, for instance, the median property price in Portugal rose by an impressive 14%. The official research body of the Portuguese government, INE, revealed that throughout 2022, average prices in the country rose by 17.2%.
"Portugal has greatly benefited from two simultaneous trends: the boom in tourism and the arrival of technology giants and startups from all over Europe," explains Amir Talmi, CEO of Youropa Real Estate Portugal. "The demand for properties in major cities like Porto and its metropolitan areas exceeds the limited supply, a trend that is expected to continue in the coming years, significantly contributing to the price increase."
Youropa Real Estate is part of the Youropa Group, specializing in real estate entrepreneurship and in accompanying investors in real estate investments in Portugal. To date, investors have successfully made hundreds of investments through the company, with a total volume of over 120 million euros. The company has extensive local operations that deal with property scouting, purchase assistance, financing plans for investors, and post-purchase asset management solutions aiming to maximize returns. Youropa Real Estate offers its investors in Portugal a comprehensive, full-range service from A to Z, starting from the earliest stages of finding the right deal through the purchase and financing process with the local bank, and culminating in the actual management of the asset after its delivery to the buyer.
Youropa Group also operates independently, through another subsidiary, GAYA Capital, as an active partner in real estate entrepreneurship – a significant advantage for Youropa Real Estate investors.
The primary focus of Youropa Real Estate's activity is the Porto metropolitan area in northern Portugal, due to the relatively low real estate prices in the city, compared to Lisbon where there has already been a significant increase in property prices, it's estimated that the main price hikes in the Porto metropolitan area are yet to come.
Mr. Talmi also explains that the return-on-investment properties in the Porto area is considered especially high. "Let's take a project where apartments are sold at an average price of about 230,000 euros. The estimated yearly return stands at 8%-12% on equity. It's important to note that in Portugal, unlike other investments destinations in Europe, you can get bank financing for up to 75% of the property price. As such, an investor would only need ~75,000 euros in equity for the property purchase and related costs, leveraging the investment with very high returns compared to other destinations in the world."
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