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Portugal named the best country in the world to buy a second home

Portugal named the best country in the world to buy a second home

Portugal is the best country to invest in buying a second home. Quality of life and characteristics of the coastal areas like Porto and the Algarve are decisive.

Portugal is the best country in the world to invest in the purchase of a second home, reveals the latest study by the Australian online platform "Compare The Market". The quality of the Portuguese coastal cities, such as Gaia, Matosinhos and Porto, in the North, and Lagos, Tavira or Portimão, in the Algarve, were decisive for this position that results from an analysis that took into account 34 countries of the Organization for Economic Cooperation and Development (OECD). Portugal managed to obtain a score of 7.2 out of a possible 10 points. In second place were, with equal scores, Hungary and Turkey (7.06), two countries that lose drastically to Portugal in the security league. Third place is occupied by the Czech Republic (6.97), a territory known for its history and its castles, but which has neither sun nor beach. Portugal has, as you know, 300 days of sun per year and more than 660 beaches, more than half (431) with a blue flag. This makes it the sixth country in Europe with the most beaches with this award, which shows the country's great environmental awareness.

 

Related: Demand for beach houses soars in the North of Portugal

 

The study, which aimed to analyse which are the best countries to buy a second house or apartment, destined for holidays and weekends or to put on the rental market, weighed the price of the houses (find yours here) and measured more prosaic parameters, such as the quality and cost of living, the number of restaurants and even the price of beer. The Australian platform highlighted the beauty of the coastal cities, the hospitality of the population and emphasized the relaxed pace of life. It also did not ignore that "the country is an extremely popular tourist spot", with many tourists unable to resist buying property in this small rectangle of the Iberian Peninsula, and was surprised by the intense restaurant activity: Portugal, which has a total area of 92 090 km², being bounded on the north and east by Spain and on the south and west by the Atlantic Ocean, boasts 349 restaurants per hundred thousand inhabitants, 33 of which were awarded Michelin stars in 2022. The average cost of living has played a major part in putting Portugal at the top of the table: it takes only 553.37 euros per person per month. The price of beer is also on the positive side: around two euros. Portugal almost only loses out on the cost of taxi journeys: each journey costs 3.29 euros upfront, which pushes the country to the bottom of the top 10. Chile is the country where taxi fares are the cheapest (51 cents).

 

Related: Buying a house: the Algarve and Porto in the sights of the French

 

In another analysis of the same platform, aiming to choose the best destinations to make investments in the real estate sector, namely to take financial dividends from it, Portugal is once again well placed. Buying a home is one of the biggest investments and commitments we make in life, so, according to "Compare The Market", it is important to be guaranteed a profit if one day, for whatever reason, it becomes necessary to sell the house. Thus, the best countries for long term investments are, according to the perspective of this study, those where the house price shows a consistent growth, preferably when combined with the rise in the average salary. In Portugal, the performance of the average salary loses out to other countries, but the performance of house prices is one of the most robust, as was seen during the Covid-19 pandemic, with the market resisting the fall in prices. The same is happening now in the face of inflation and the invasion of Ukraine by Russia.

According to the latest report released by the National Statistics Institute (INE), house prices rose 13.2% in the first quarter of 2022 compared to the same period of the previous year. In the second quarter, it rose again (0.3 percentage points more than the previous quarter), representing a "new historical maximum". The largest increase occurred in the used homes market (14.7% in the second quarter of 2022). In the same period, new homes rose 8.4%. Buying a home in Portugal therefore continues to be a safe and profitable investment. This explains the high demand for real estate, as shown by INE data: between April and June 2022, 43,607 homes were transacted, which represents a growth of 4.5% compared to the same period in 2021, and something like 8.3 million euros moved.

 

Related: What does Portugal have that the Americans want?


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