Investor · Portugal · Member since 2020 · 16 posts · 9 votes
I'm looking forward to discuss points of view on 2nd and 3rd ranking cities in Portugal.
As far as I know, 1st rank cities in Portugal can be counted with the fingers of 1 hand (Lisbon, Porto, Key cities in Algarve). I think there could be more investment going on other smaller cities, but there is not a lot of information available about these markets, hence the reason that only local and more risk-taking investors are making any moves.
My company is already investing in smaller cities where I can expect good returns RIGHT NOW, but also a huge potential for appreciation on the long run.
Are you a national investor or are you investing from abroad? What makes you consider or even discard investing in 2nd and 3rd rank cities in Portugal?
Right now, the fact that the main markets are too overpriced. Any good deals that appear appear only to the big sharks or the fortunate lucky ones. There is just too much competition.
other cities (depends): There are cities (10-50k people) with a superior quality of life. If picked wisely, you can target your rentals to locals, Portuguese migrants and foreigns.
There is very little quality rental listings available, and the demand does also surpass the offer drastically, however this do not rise the rental value as much as , ex, Lisbon.
I'm not sure I understood this one last question from you: "Anything on the North Atl cost that's worth looking at as VRBO or is it too desolate? Don't think I'd want to be too far inland?"
Meant on the coast by Porta / Braga. Is access easy for vacationers and are there a lot? I'm not expecting traffic like Algarve (which is not a bad thing), but would need to generate some income.
Yes, Porto is also touristy. In the north region you can also invest in rural tourism, ex. near the natural parks, river beaches and waterfalls. If you meet a good listing quality standard, I have no doubt you'll have demand even in the low season.
you can have an idea of the occupation right by actively looking at Airbnb listings that would compare to your future one throughout a season. From there you can have a rough idea of your occupation rate&prices.
@Ricardo Matos what are your thoughts on Coimbra? I am renting in Santa Clara at the moment but looking for something interesting. Maybe a T6-T12 to fix & AirBnB ... Assuming the tourists return.
Although there is a potential for a good secondary market in expats that need accommodation set up in advance for SEF.
Coimbra is a good market (serves professionals, students, national/international tourists and local families), a little bit overpriced right now, IMO. Depends on your business model and financial goals.
As I often state in this forum, I specialize in investing in buy&hold (LTR) with 18%+ gross returns (yearly) so I'm not looking into markets like Coimbra RN