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Portugal as a Great European Investment Destination

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With Portugal now having recovered from the debt crisis that engulfed it through the early 2010s, it has once again become one of the most prosperous and sought-after economies in the Eurozone.

So, aside from being a beautiful country that’s steeped in culture and sustained by a bustling tourism sector, Portugal is fast becoming one of the most popular European destinations from investors from across the globe.

We’ll explore this further below while asking how Portugal can sustain this reputation over time?

Why is Portugal So Popular Among Investors?

Currently, investors from across the length-and-breadth of the GCC and MENA region are currently searching for global investment assets, particularly within the residential, commercial, retail and student accommodation space.

This has certainly been reflected by regional sections of the Portuguese property market, where it’s estimated that up to 35% of all real estate investments in Lisbon had been made by foreign citizens in 2019.

Certainly, it’s real estate that has helped drive increased foreign investment levels in recent times, while also spurring job creation and having an indirect impact on other markets such as equities and currency.

The growth of this market has also helped to fast-track the rehabilitation process of properties across the country, while in 2019, it was thought that foreign investments in Portuguese real estate assets exceeded é34 billion overall.

Of course, this initial popularity of the property market itself has been underpinned by an increasingly friendly environment for investors, including the so-called “Golden Visa” scheme.

This ensured that selected investors could enter Portugal and travel through Europe’s Schengen Area without a visa while enabling them to live and work in the country even in instances where they held residence in a separate country.

Portugal’s Popularity in Numbers

Interestingly, Portugal’s popularity among overseas investors was sustained through 2020, even against the backdrop of the coronavirus pandemic.

With 154 registered projects, Portugal entered the top 10 investment destinations across Europe, with factors such as its innovative visa scheme, lucrative property margins and economic resilience central to this.

Studies also show that 90% of foreign investors are confident that any negative impact caused by the pandemic will be short-term, lasting for no more than three years in total.

In fact, as many as 50% of investors feel that Portugal’s attractiveness will improve among investors during this period, while 37% are planning to establish or expand their portfolio in Portugal over the course of the next 12 months.

How Can Portugal Sustain Its Popularity?

Ultimately, recent changes to Portugal’s visa scheme (which raised the minimum investment requirement for qualification) may have a short-term impact on real-time investment levels in Portugal, so the country may need to take steps to help preserve its hard-earned reputation.

For example, it must continue to make overseas investment a key objective in the coming years, while reinforcing a progressive cleantech strategy and striving to become a market leader in sustainability.

In the wake of the coronavirus, there should also be a focus on driving social and economic recovery in the event of the pandemic, using foreign direct investment (FDI) as a key part of such strategies.

 

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Salman Ahmad is a seasoned writer for CTN News, bringing a wealth of experience and expertise to the platform. With a knack for concise yet impactful storytelling, he crafts articles that captivate readers and provide valuable insights. Ahmad's writing style strikes a balance between casual and professional, making complex topics accessible without compromising depth.

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