Portuguese Mortgages

As Portugal is becoming an increasingly popular location for foreign property purchasers, it is not surprising that the Portuguese mortgage market is also developing at an impressively fast rate.

Property Market in Portugal

Get a Free Quote Introduction to the Portuguese Property Market
Portugal is an increasingly popular and important country in the international property investment world. One of the main driving factors, in recent years, has been the greater numbers of tourists preferring to visit Portugal rather than other more traditionally popular holiday destinations such as France and Spain.

With nearly 2 million UK visitors a year to Portugal, the demand for holiday rental property has simply exploded, ensuring a healthy return for anybody choosing to purchase a suitable Portuguese property.

Guide to Portugal
As with most booming property markets, certain regions offer a bigger or more certain return. Equally, there are some parts of Portugal that remain largely untouched and bargain properties can still be located. Property can be purchased for as little as £50,000 for a renovation project that is purchased inland.

The more popular holiday resorts which are primarily around the coastal areas such as the Algarve are commanding much higher prices. However, with so many new build complexes, the financing and rental of a property in these holiday hot spots, even the more expensive options, actually offers amazingly good investment potential.

Factors Driving the Portuguese Market
Location is really everything for this relatively small country and comparatively undeveloped property investment location, as a whole. With the Atlantic Ocean to the west and south, there is plenty of coastal mileage that is available for real estate development.

Similarly, Portugal also borders Spain to the north and east, offering unrivalled mountain regions and excellent transport links. Despite its close links, Portugal is still playing catch-up with the rest of Europe after suffering from 40 years of dictatorship, during the mid twentieth century.

Because of its turbulent past, Portugal is still perceived by many as being slightly ‘behind’ other countries in terms of property pricing.

Whilst some investors consider that Spain and France no longer offer the potential capital gains from property, this is not always thought to be the case in Portugal, where the property market is recognised as being nowhere near saturation point.

Summary
Bullet Point The property market in Portugal is not as well developed as many other European holiday destinations;
Bullet Point Portugal is currently very popular with tourists and the demand for holiday homes is growing at such a rate that the construction industry can barely keep up;
Bullet Point parts of the country are less developed, offering cheaper properties with a greater potential for long-term capital gain;
Bullet Point Portugal boasts some of the best coastline in Europe, as well as wonderful transport links making it a hot favourite location for visitors and investors alike.

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Typical Interest Payments

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2.89%

Purchased Fixed

2.89%

Discounted Rate

2.99%

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2.99%

Commercial

3%

 

 

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