Buying property in Porto

Buying property in Porto
Updated 2019-07-31 09:17

Portugal's economy is growing, as well as its tourism and real estate investments. With such an intense demand flooding Porto's real estate market, one should expect a higher focus from local authorities on bigger transactions, in order to avoid tax evasion and market speculation by both buyers and sellers.

Because of the recent shortage of affordable housing options for locals, there has been a fierce political debate about the subject in the last couple of years. As a result, laws on buying and renting properties, as well as the legal obligations of both tenants and landlords are continually changing.

Property prices in Porto

Houses in Porto have seen their prices and investment value skyrocket in the past few years. Some experts are actually talking about the possibility of a housing bubble that could possibly burst into a terrible crisis for the entire country. Be that as it may, demand keeps on rising, and so do prices. If you want to be sure you are not making a mistake when buying a house, be sure to check INE's app (the Portuguese National Institute of Statistic) with information about average prices in each city district. It displays values updated to the last quarter of 2018, and will soon be updated to feature data from 2019 as well.

Take a look at Porto's downtown values (2,939⬠per square foot) compared to 1,852⬠per square foot for Boavista, and 1,650⬠per square foot in Bonfim, a popular neighbourhood near the city's main tourist centre. Location is critical when talking about prices!

Procedures for buying property in Porto

The process of buying property in Porto is everything but simple. You are going to need a lot of paperwork and it is easy making a mistake and having to start the process all over again. If you are considering buying a house or property in the city's historic centre, then you will need a Portuguese lawyer for sure ' since houses in these areas usually require specific licensing and permits, especially if you're planning on doing renovations.

However, if you simply intend to buy a house and have all the proper procedures done correctly at first, then we recommend you to simply contact an official Real Estate Agency and everything will be taken care off for you. Real estate agencies charge a 5% to 10% commission (in most cases) but, as a buyer, this won't be of your concern, since that amount is simply removed from the seller's profits. Take a look at some of the most relevant agencies in Porto, and contact them to let them know what type of house you are looking for ' they will take care of all the heavy lifting for you!

Era and Remax are the most common names in Portugal's real estate world, but if you are looking for something a bit more upscale, try Luximo's Christie's.

To sum it up, buying properties in Porto is nowadays a tremendous investment opportunity, especially if you don't need to rely on bank credits to proceed with the buy. Remember that laws keep being altered and tweaked as days go by, so it is very important to ensure you have skilled professionals and specialists on your side to make sure you have a smooth ride.

We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this article, please let us know in the comments section below.