Portugal has long been considered a low yield destination residential real estate market. The inflationary effect of waves of investment such as those caused by the Golden Visa program in Lisbon, have had a deflationary effect on residential yields, notwithstanding the growth in tourism numbers and prices in the same areas. As a result, single property investments have become by necessity a process of working with experts knowledgeable both in the real estate market and the methods of sweating the asset (getting maximum yields from properties).
Our team has an outstanding track record of delivering rental yields from properties around the globe. This knowledge and skill is of particular relevance, even if you are looking for a personal purchase which needs to generate some income during the months during which you do not use the property.
Gross yields in Portugal have traditionally been in the 2-4% range and it is still the case that most real estate agents do not have the experience or understanding of what constitutes a good investment. While “nice sea views” clearly are a contributing factor how well the property rents, location in itself is not a substitute for a more balanced set of factors which make one property more likely to generate income than another.
This nuance is not understood by the majority of traditional real estate agents, accustomed to selling lifestyle properties. At a basic level, price matters and it is important to understand whether a price premium will translate into a proportionally higher rental yield. Having a trusted partner with access to good deals and with the expertise to distinguish the better ones, is essential.