Rent rates in Portugal are set to further increase across the country and are expected to peak in 2019 according to new data from the National Statistics Institute (INE).
According to The Portugal News: “In the past 12 months up to August the average variation of the price index, excluding housing, was 1.15%, which serves as a basis for the ratio used for the yearly update of rents for next year under the New Regime of Urban Renting”.
The rental rates increase is set to affect both rural and urban areas leaving rents at the highest level seen since 2013 before the impact of the Global Economic Crisis fully hit Portugal and all sectors of the economy.
Following the crash Portugal saw rents being frozen in 2015 due to the negative variation in the price index which, at that time, excluded housing. Before, these rents had been rising steadily each year, with increases registered between 2011 and 2014.
Whilst rising rent rates may be adversely affecting business owners within Portugal, it is having the opposite effect on property owners who are able to demand higher prices and are able to obtain a better return on their investment.
A distinct lack of supply to meet demand is being cited as one of the major reasons behind the rent increases and property owners in Portugal are currently taking advantage of this to make up for lost income over recent years as rental rates bottomed out.
Purchasing a property in Portugal as an investment is becoming increasingly popular, with buyers from both Portugal and overseas snapping up commercial and private properties to rent out to businesses, private renters or for holiday rentals.
There is great potential in Portugal currently for property owners to reap the benefits of being a property owner. If you would like to find out more about buying investment property in Portugal, then please contact a member of our team today by email This email address is being protected from spambots. You need JavaScript enabled to view it. or telephone them on (+351) 282 356 952. They will be happy to help source the right property for you and guide you throughout the process of buying your own property in Portugal.
