Lisbon Property Update
As a result of new government initiatives known as the 'golden visa scheme' the Portuguese property market particularly for Lisbon are having increased buyers and investors particularly from overseas. Buyers are from Brazil, Turkey, France, the UK and China who enjoy the cost of living, affordable home prices and ease of transport travel.
The report states:
'Indeed, it adds that with three tech parks, 90 higher education institutions, two universities and a vibrant start-up scene, Lisbon is emerging as one of Europe’s creative hubs'.
A new report released by Knight Frank in PropertyWire shows that 7,291 residential permits have been granted to non-EU residents since the beginning of 2012.
For Lisbon prices of €1 million are fetching property of 125 square meters whereas in London that cost would get the buyer just 43 square meters.
The Portuguese government started the popular Government’s Non Habitual Residency (NHR) scheme in 2009 that provided that anyone who has not been a resident in the country for five years could receive tax-free pension income, capital gains for real estate and income from outside Portugal for 10 years.
Additionally the report includes:
'The report adds that there is currently noinheritance tax, gift tax or wealth tax in Portugal.
Methods for residency vary with 6,879 purchasing property transactions with an investment of €500,000 or more, 367 transferred capital and 15 more created 10 jobs or more.
Lisbon comprises a variety of neighbourhoods spread across seven hills with the Avenida da Liberdade as the main area for the city's old town to the waterfront of Baixa with its theatres and restaurants.
Another popular location is the Chiado district that was damaged by fire in 1988 and rebuilt that has prices now at €10,000 per square meter some of the highest in the city. With its village feel and to the west of Chiado is Belém. At one time the area was known for its docklands but now offers green spaces, plazas and parks.
To the west of Lisbon is Cascais the coastal enclave that features villas, golf and international schools. The lack of property for rental has made this location 30 kilometres from Lisbon has provided yields of 6% for investors in the central residential market and 8% outside the town.
It is expected in 2020 the opening of the new Monitjo Airport which is expected to handle up to 50 million per year which is quite the increase of the current 28 million. Under construction is the €210 million Metro rail service and upgrades to transport hub of Cais do Sodré for service of trains and ferries.