Investment Property in Lisbon

Invest in Real Estate in Lisbon

Investment Property in Lisbon
Investment Property in Lisbon

Lisbon property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Lisbon .

Search Map of Lisbon Investment Real Estate

Lisbon (; Portuguese: Lisboa [liʒˈboɐ] (listen)) is the capital and largest city of Portugal, with an estimated population of 544,851 within its administrative limits in an area of 100.05 km. Lisbon’s urban area extends beyond the city’s administrative limits with a population of around 2.7 million people, being the 11th-most populous urban area in the European Union. About 3 million people live in the Lisbon metropolitan area, making it the third largest metropolitan area in the Iberian Peninsula, after Madrid and Barcelona. It represents approximately 27% of the country’s population. It is mainland Europe’s westernmost capital city and the only one along the Atlantic coast. Lisbon lies in the western Iberian Peninsula on the Atlantic Ocean and the River Tagus. The westernmost portions of its metro area, the Portuguese Riviera, form the westernmost point of Continental Europe, culminating at Cabo da Roca.

Lisbon is recognised as an alpha-level global city because of its importance in finance, commerce, fashion, media, entertainment, arts, international trade, education and tourism. Lisbon is one of two Portuguese cities (alongside Porto) to be recognised as a global city. Lisbon is home to three companies in the Global 2000. It is one of the major economic centres in Europe, with a growing financial sector and one of the largest container ports on Europe’s Atlantic coast. Additionally, Humberto Delgado Airport served 31 million passengers in 2019, being the busiest airport in Portugal, the third busiest in the Iberian Peninsula and the 20th busiest in Europe. The motorway network and the high-speed rail system of Alfa Pendular link the main cities of Portugal to Lisbon. The city is the ninth-most-visited city in Southern Europe, after Istanbul, Rome, Barcelona, Milan, Athens, Venice, Madrid and Florence with 3,539,400 tourists in 2018. The Lisbon region has a higher GDP PPP per capita than any other region in Portugal. Its GDP amounts to US$110.3 billion and thus $39,434 per capita. The city occupies the 40th place of highest gross earnings in the world. Most of the headquarters of multinational corporations in Portugal are located in the Lisbon area. It is also the political centre of the country, as its seat of government and residence of the head of state.

Lisbon is one of the oldest cities in the world and the second-oldest European capital city (after Athens), predating other modern European capitals by centuries. Julius Caesar made it a municipium called Felicitas Julia, adding to the name Olissipo. After the fall of the Roman Empire it was ruled by a series of Germanic tribes from the 5th century; later it was captured by the Moors in the 8th century. In 1147 Afonso Henriques conquered the city and since then it has been the political, economic and cultural centre of Portugal.

The financial stability of Lisbon has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Lisbon

 

Renting out your Lisbon buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Lisbon are – preparation is key.

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Lisbon and be prepared to change your initial outlook.
  • Thoroughly research the Lisbon location with a special emphasis on fringe areas outside the main Lisbon metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Lisbon.
  • Ensure that your target investment property in Lisbon appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

 

With our expert guidance, investing in Lisbon provides the secure knowledge that your money is working harder than it would in a local Lisbon bank and that future generations of your family will be left with substantial capital growth assets.

 

We are always happy to advise on buying investment property in Lisbon, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Lisbon property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Lisbon

Flipping property in Lisbon

 

Flipping property is when we advise clients to buy a Lisbon property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Lisbon market has a time to react to the renovation.

 

The Flipping Strategy in Lisbon

 

Investment property flipping in Lisbon is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Lisbon real estate investments are sometimes referred to by professionals as ‘distressed’ Lisbon real estate.

 

What is distressed Lisbon property:

 

  • Lisbon property in need of renovation
  • Lisbon real estate with a change of purpose and use
  • Oversold Lisbon property
  • Bank repossessions in Lisbon

Put simply, long term investors in Lisbon purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Lisbon investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Lisbon property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Lisbon use a minimum profit value of 22% when looking at potential Lisbon projects.

 

The reason for this is because there are lots that can go wrong in Lisbon property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Invest through a Fund in Lisbon

 

Property Secured Investments is a Private Equity fund that invests in Lisbon and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

Luxury Property in Lisbon

For luxury property investors hoping to add a superb property in Lisbon to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

 

A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Lisbon, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Lisbon should be entrusted to only the highest-quality agency.

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