Increasing signs indicate that in 2014, Portugal will gradually exit the economic adjustment program and will no longer rely on loans from the European Union and the International Monetary Fund (IMF). This has greatly boosted investors' confidence in the recovery of the Portuguese economy. Since the second half of 2013, various economic indicators in Portugal have shown improvement, with a decrease in the unemployment rate and a continuous rise in consumer confidence index.
These positive economic indicators are also reflected in the real estate, construction, retail, and tourism markets in Portugal. Experts from WorldWay Investment state that 2014 will be the year of investment in Portugal. Below is a summary of the recent development trends in the Portuguese real estate market:
First, global investors have shown strong interest in real estate projects in Portugal that were delayed during the economic crisis, paying special attention to these properties. In the fourth quarter of 2013, various real estate investment funds gradually returned to the Portuguese real estate market. Portuguese law firms have also handled a large number of property sales and transaction procedures. The recovery of the real estate market has provided institutional investors with excellent investment opportunities in new real estate projects in Portugal, and 2014 is expected to see more investments.
Second, it is anticipated that in 2014, investments in the construction industry, urban housing, commercial, and tourism projects in Portugal will flourish. Portugal welcomes more well-known brand companies to establish luxury chains and large retail chains, such as opening new stores in the bustling commercial areas of Avenida da Liberdade and Baixa-Chiado in Lisbon. At the same time, Portugal also looks forward to more boutique hotel chains strengthening their focus on the potential of the Portuguese tourism market.
Third, another significant feature of the Portuguese real estate market is the strong and rapidly expanding demand. This is largely due to the residential investment needs of retirees from other European countries. Portugal is an ideal destination for tax residency. Moving to Portugal can help avoid heavy taxes on pensions and other income that would need to be paid in their home countries.
Fourth, experts from WorldWay Investment predict that in 2014, the "Golden Residence Permit Program" in Portugal, aimed at attracting investment immigration, will bring about a "second wave" of resident permit approvals. The real estate immigration in Portugal is now a market worth billions of euros. In 2013, a total of 471 applications for Golden Residence Permits were approved (of which 399 were from Chinese investors). Real estate investment immigration has become the most favored option for investors. The 2013 Portuguese Golden Residence Act attracted a total investment of 306.7 million euros from foreigners, of which 272.4 million euros came from the real estate investment immigration program under the "Portugal Golden Residence Permit Program." It is expected that in 2014, more Golden Residence applications will be approved by the Portuguese immigration authorities.
