What are the advantages of investing in real estate in 2019?

Discover the many advantages of investing in the real estate market! These days, property investment may seem like a bold move, but we're here to show that it offers rewarding opportunities. Not only do we want to educate you on the many benefits, but we also want to introduce you to some Portuguese investment platforms that could be the way to go. Get ready to discover a world of opportunities in the real estate market!

1. Rising property prices

In the first quarter of this year, property prices rose by 0.8% in the European Union and 0.4% in the Eurozone compared to the same period in 2022. Portugal recorded the sixth-highest increase in property prices compared to the other 27 countries of the European Union.

According to INE (Instituto Nacional de Estatística), these increases are also evident at the local level. In Lagos, the median price for the house sale in the first quarter of 2022 was €2425/m2. In 2023, during the same period, the value increased to €2837/m2.

We do not expect property prices to weaken, so now is the right time to invest. Choose sustainable investments with good prospects for long-term profitability.

Check out the median sales figures for Q1 2022/2023 for each municipality in the Western Algarve:

2. Investment in financial products

Following the previous point, we emphasise that property investment is the best way to invest your money effectively. Consider real estate investments as a way to make the most of your money without relying on traditional financial products, where returns are often slow and below expectations.

3. Real estate investments

There are several ways to invest your money in the real estate market:

• Real estate investment funds

This type of investment requires some time before you can see a return, but it is particularly suitable for those who do not want to worry about tenants or property sales. It consists of passive participation in the whole process (see the relevant legislation on the CMVM website).

• Real estate crowdfunding

Real estate crowdfunding is nothing more than collaborative financing, which is defined in the Regulation as "the way in which companies or their activities and projects are financed by registering on electronic platforms accessible via the Internet through which they collect investment funds from one or more individual investors".

Investments do not require large sums of money and can start as low as 50 euros, or you can invest in the entire operation. Real estate crowdfunding is a safe option and is already revolutionising the Portuguese real estate sector. Last year, one of the platforms managed to raise the highest amount of community investment, €3 million, in just ten days. In Portugal, four platforms are registered with the CMVM: Housers, Querido Investi, GoParity and Raize.

• The conventional property market

Investing in a property is always a good option when accompanied by a real estate agent. The role of these professionals is to ensure a safe investment, whether to make a profit or to live in it permanently. Find out the advantages of working with qualified help when buying or selling a property by reading the article "What is the role of a real estate agency?”

4. Profitability of real estate investments

Assets invested in the real estate market are always profitable. When you invest your money in real estate, you are investing in something physical and tangible that gives you the ability to control its characteristics according to market demand. Considering geographical areas for property investment is extremely important for success. Large urban centres like Lisbon, Porto and tourist areas like the Algarve ensure that the investment will always be profitable, regardless of the end use of the property. Create a well-structured plan and consider meeting with a real estate agent to jointly assess the profitability of your project. If you decide to invest in a plot of land for a future construction project, read the article "Real Estate Market - How to invest in land in Portugal" and contact us to find out about the available plots in our portfolio.

The trend of investing in the real estate sector is still on the rise and remains a solid choice for investing your capital. Unlike shares on the stock market, here you invest in tangible assets and can guarantee a return or even the preservation of the original value. This approach is all the more important at a time when stable and solid investments are essential for a secure financial future.