Invest in funds,
Real Estate based
As of January 1st, 2022, the investment in the direct acquisition of residential property for Golden Visa is restricted to the islands of Madeira and Azores and to low-density areas across mainland Portugal.
These regions have not shown the same value creation as the now excluded regions of Lisbon, Oporto, and Algarve did in the last ten years.
Funds does not have geographic restrictions, and in 2022 can continue to invest in Lisbon, Oporto, and Algarve.
Golden Visa Portugal legislation
As of January 1st, 2022, the Golden Visa Portugal legislation has been amended by the Portuguese Government, adding some new changes and rules to the previous investment criteria to invest in the Golden Visa Portugal Programme.
Among the new rules, the minimum investment increased from 350,000 € to 500,000 € for Funds.
Residential Property
For residential property acquisition with the purpose of qualifying for Golden Visa is now restricted to the islands of Madeira and Azores and to low-density areas across mainland Portugal, excluding the regions of Lisbon, Oporto and the Algarve.
Although these regions are still attractive in terms of lifestyle and quality of living, they have not shown in the past, and are not expected to show in the future, the same value creation as Lisbon, Oporto, and Algarve did in the last ten years.
The Funds route does not have geographic restrictions. Therefore, investing in Funds, Real Estate based, makes the investment in this type of Funds the highest net return option.
Funds are dully regulated by CMVM – Comissão do Mercado de Valores Mobiliários
(i.e Portuguese Securities Market Commission).
Investing in a Fund has a faster processing with a simpler and more efficient subscription process than the sourcing and acquisition of properties.
Investing in a fund is a more cost-efficient option, with no entry fee nor exit fee whilst investing in properties the Main Investor must pay transfer fees, stamp duty amongst other fees and costs during the lifespan of holding the property.
Additionally, by investing in a Fund there is a potential for higher earning investments than the properties. The tax benefits obtained by investing in Funds (no tax on dividends nor on capital gains) together with the average target returns above 6% IRR, make Funds the option with the highest net return.
Invest in a Fund that provides the possibility of owning a residential unit, at the end of the Golden Visa period
The Multi-family
Residential Market
The Multi-family market has recently gathered momentum and it now makes up 17% of all real estate investment in Europe, up from 2% a decade ago.
A real estate based fund with continued potential growth and consistent returns.
It gives an opportunity for investors to diversify into an asset class, often inflation linked, which has a low correlation with other asset classes.
European Multi-family investment had a record-breaking year in 2021 where nearly €100bn were invested.
The sector performed above-average with a compound annual growth rate of over 15% between 2012 and 2020 and a larger than 50% annual increase in 2021.
Residential Sector
in Portugal
The Real Estate Residential segment showed its resilience during the recent COVID crisis by being one of the fewest sectors that remained with a growing trend.
Also in periods of inflation, Real estate, and specially Residential, is considered one of the best investments, given that usually has little correlation with stocks and bonds.
Average property prices are up 7% for the last 12 months following the trend from the previous years.
Since 2015, property prices in Portugal increased more than 100%. The consistency of the growth in this 6-years period is a sign that the increase in property prices is not expected to slow down in the next years.
Price Evolution of Houses
for Sale in Portugal (2015-2021)
Lisbon
Residential Units Sales
Price — Q1 2022
Lisbon
Rental Prices
May 2022
The Rental prices in the capital of Portugal registered a 6.3% increase comparing to May 2021.
Lisbon is one of Europe’s oldest cities, a cultural hotspot with a fantastic reputation for local food and wine.
Over recent years the city has gained strong international awareness for its lifestyle and vibrant start-up hub, attracting numerous foreigners to live and work.
The Sales Price of the apartments in Lisbon registered a 152% increase throughout the last 7 years, which corresponds to a CAGR of 14%.
LISBON
AVERAGE SALES PRICE
€4,200 +7.6%
per sqm y-o-y
AVERAGE SALES PRICE OF NEW UNITS
€7,600 +11.4%
per sqm y-o-y
Source: Confidencial Imobiliário SIR
Lisbon maintains its attractiveness as a living destination with an upsurge in prices in the zones where new projects have been launched targeting the high end of the market.
LISBON HIGH END MARKET
AVERAGE SALES PRICE
€6,500 +7.8%
per sqm y-o-y
AVERAGE SALES PRICE OF NEW UNITS
€10,200 +35%
per sqm y-o-y
Source: Confidencial Imobiliário SIR
Oporto
Residential Units Sales
Price — Q1 2022
PRIME SALES PRICES
Oporto
Rental Prices
May 2022
Oporto’s apartments rental prices registered a 3.7% increase comparing to May 2021.
There has been large amount of urban regeneration recently in Porto, with the renovation of several buildings.
However, developers have favoured the sales market or tourism accommodation. As a result, rental supply has been scarce.
The Sales Price of the apartments in Oporto registered a 118% increase throughout the last 7 years, which corresponds to a CAGR of 12%.
OPORTO
AVERAGE SALES PRICE
€2,800 +21.8%
per sqm y-o-y
AVERAGE SALES PRICE OF NEW UNITS
€3,900 +15.3%
per sqm y-o-y
Source: Confidencial Imobiliário SIR
Oporto is in the spotlight with the development of several great scale projects. There is a growing attractiveness from the international demand to the city which was previously reliant on the domestic market.
OPORTO HIGH END MARKET
AVERAGE SALES PRICE
€5,300 +17.3%
per sqm y-o-y
AVERAGE SALES PRICE OF NEW UNITS
€6,500 +10.1%
per sqm y-o-y
Source: Confidencial Imobiliário SIR
Use CRYPTO to invest
If you would like to use crypto for the investment related with your Golden Visa application, please contact us and we will get back to you immediately.
