Next growth areas

Real estate in Portugal has weathered the downturn caused by the pandemic and the war, has become a synonym for confidence and in 2022, stands out as one of the most competitive destinations for tourism and international real estate.

Regardless of the end of the gold visa regime as we have known it in recent years, in the Metropolitan Areas of Lisbon and Porto and in the coastal areas, i.e. the areas with the highest population density, home buying in less populated areas continues to dominate investments and to be a point of attention, since they are growing as a tourist destination.

The World Travel and Tourism Council WTTC released in the summer that tourism in Portugal in 2023 is expected to continue to power the economy, and may even surpass the best year of 2019, still in the pre-pandemic period. The Local Lodging data records higher growth in inland cities such as Bragan?a (+50%), Guarda (+47%), Portalegre (+36%) and Vila Real (+32%) highlighting the Douro area, while in Lisbon and Porto, they practically stagnated.

This trend of growth in demand for smaller cities and in the interior regions of the country - for rural areas, quieter and of exceptional beauty - can also be seen in areas such as Lous? (Coimbra), Alqueva (évora) and Grandola (Setúbal) as well as Reguengos de Monsaraz (évora), Esposende (Braga) and Moncarapacho (Faro). The justification for this trend, according to the Association of Local Lodging in Portugal (ALEP), focuses mainly on the demand for places that are "more innovative destinations such as inland, surf and nature" - which currently represents more than 70% of overnight stays.

But which places are really worth investing in in the near future? According to a recent study conducted by Bloom Consulting Portugal City Brand Ranking, the 10 best cities to invest in are Lisbon, Porto, Cascais, Braga, Coimbra, Vila Nova de Gaia, Sintra, Funchal, Setúbal and Aveiro. It is not by chance that Lisbon stands out due to its strong international impact on investors and tourists and occupying the big stages with other more competitive European cities.

In the Top 25 in the category of Business in the North, in addition to Porto, the cities of Braga, Guimar?es, Vila Nova de Gaia, Matosinhos and Maia are the best to invest in. As for the Southern zone, besides Lisbon, the study mentions Cascais, Sintra, Setúbal and Oeiras. In the regional ranking in the Central Region, the cities of Coimbra, Aveiro, Leiria maintain their positions. In the top 10 we still have Viseu, Torres Vedras and Figueira da Foz, Caldas da Rainha, followed by Nazaré, Guarda and Covilh?. In the Tourism category, Lisbon and Porto are at the top, and we want to highlight that Nazaré is still 1st in the Tourism category in the Central Region of Portugal and is in the Top 10 nationally.

This location gained worldwide visibility when the Hawaiian surfer Garrett McNamara, in 2011, surfed the largest wave in the world, with approximately 30 meters, in Praia do Norte and won the Billabong XXL Global BigWave Awards, at the same time that he won a Guinness Book record.

It also stands out for promoting the Nazaré Tow Surfing Challenge event, which brings countless curious tourists to the area. It is for sure a touristic point of interest to invest in! Portugal continues to be a safe, competitive and sustainable destination for people investing in real estate.

If you want to invest in real estate in Portugal in order to turn it into Local Lodging, consult Gesthomes to help you with the management of your properties.

This article is for informational purposes only, and does not constitute legal or professional advice of any kind.