Why Lagos in Portugal is a great place to invest in 2023
Portugal is on the investment hotlist. More specifically, the Algarve. The area of Lagos has been rising on the global radar, and so have the investment opportunities with both residential and commercial properties available for purchase. Right now, is a great time to become a property owner in Lagos.
Lagos is popular with both investors and tourists thanks to its charming towns, incredible beaches, and quaint restaurants and cafes. Lagos is in the Central Algarve region of Portugal and enjoys around 300 days of sunshine per year and they certainly have the beaches to make the most of it. The vibrant city centre is scattered with luxury shops, world-class golf courses, and lots of historical charm. On the outskirts, you’ll find the quieter villages of Odiáxere and Monte de Funchal just a short drive away.
Here are 5 reasons why people are choosing to invest in Lagos:
1. Lagos has Great Rental Prospects
Put simply, lots of tourists means great rental opportunities! Holidaymakers love to take advantage of the consistent great weather, so there will be lots of people looking to rent out property all year round. There aren’t a vast number of hotels in Lagos and many of them are 5-Star, so there’s a huge market for more affordable accommodation choices such as apartments or villas. You can expect to make an average of between 5-8% rental yield and make extra income by renting out property in this picturesque and popular part of Portugal.
2. Residency Through Investment
A huge pull to the Portuguese property market is the residency through investment programmes. It’s attractive to many investors as the application is relatively open with reasonable requirements to qualify. The Golden Visa Programme requires a low minimum of just €280,000 and grants eligibility to live, work and study in Portugal.
3. High Quality, Modern Property
The value of property in Portugal has increased in recent years and there’s lots of investment going on around the country too. Apartment buildings and new build properties are being built around the Lagos area, but the Portuguese government have been sure to only build where it will not disturb the landscape or impact the local environment negatively. In Lagos, the property close to the beach is the most sought-after thanks to its ideal location and amazing views. Two-bedroom apartments close to the marina area are currently on the market for around €500,000. A little on the more expensive side, but more attractive to renters and tourists.
4. More affordable cost of living
Although Lagos is one of the more affluent areas of Portugal, the cost of living is generally lower than in other countries in Europe. New figures have revealed that the cost of living in Portugal is, on average, now 26.3% lower than in the UK. This makes it a great place for investors and tourists looking for somewhere to stay. There are also excellent transportation systems and Portugal came 12th in the 2022 Euro Health Consumer Index for public healthcare.
5. There’s something for everyone
Lagos is a great place to invest simply due to its location. It’s a popular hotspot that’s great for couples, families, and solo travellers. It’s perfect for golfers too, with over 30 world-class golf courses nearby. Faro international airport is just 35 minutes away and the amazing coastline, forests, and mountain ranges are just waiting to be explored. A great way to get a feel for a place is to visit there yourself. Experience what your renters will experience to get a true idea of what Lagos has to offer by visiting for yourself.
Investing in property abroad can be overwhelming. There’s so much to think about and it can be hard to know where to start when investing in property in Portugal. Our Portugal property guide is a great starting point or get in touch with us for more information about getting the most from your next investment.