Portugal Investment: Economy
Portugal property investors will be interested in the stability of Portugal's economic situation, particularly during the global economic crisis. GDP growth for Portugal was around 1.8% in 2007, and although growth has slowed on previous years, Portugal has plans to change the emphasis of their economy which will ensure strengthened GDP growth in future years.
At 3.2%, Portugal has low inflation which is attractive to foreign direct investment (FDI). Portugal is forecast to achieve FDI inflows of €4.2 billion in 2008. The government of Portugal have made reforms to enhance the business environment with a view to attracting further FDI. Portugal's stable economy is a key consideration for property investment in Portugal.
Portugal Investment: Tourism Potential
Another consideration for Portugal property investors is the booming tourist industry. In 2007, Portugal had 23 million visitors to the country. The government in Portugal is investing in the tourist infrastructure to generate more growth in the tourism sector. The construction of a new €5 billion international airport in Alcochete, an area south of Lisbon commenced in 2008. The project is expected to bring not only a much needed economic boost to the country but also to Portugal property prices in surrounding areas. These developments are further advantages for property investment in Portugal.
Portugal Investment: Property Market.
In 2007, 18,000 Britons purchased property in Portugal. Portugal's property investment hotspots particularly are worth investigating, particularly as property prices have lowered in recent months. Portugal has a thriving tourism sector and many property investors are purchasing property in Portugal on a buy-to-let basis. Although capital appreciation has slowed, average rental yields in Portugal are still a moderate 5%. Property investment in Portugal may not offer the same return on investment as other European countries but Portugal offers investment security due to the stability of its economy. For more information, click here for the Portugal Land and Property Investment Guide.
