Europe's Hidden Gem Property Hotspot Revealed 2020
Discover how Europe's hidden gem property hotspot can transform your investment portfolio, and see these options to explore the opportunities waiting for you today.
In 2020, the European real estate market unveiled a surprising contender for the title of "hidden gem"—a location that not only promises stunning landscapes and rich culture but also offers significant investment potential. This hotspot, often overshadowed by more famous European cities, is now attracting savvy investors looking for lucrative property deals. The allure lies in its affordable property prices, burgeoning tourism industry, and the potential for high returns on investment. But where exactly is this elusive hotspot, and why should you consider investing there?
The Location: Why It's a Hidden Gem
The spotlight falls on the picturesque country of Portugal, specifically the Algarve region. Known for its breathtaking coastlines and mild climate, the Algarve has become a magnet for tourists and expatriates alike. Despite its popularity in certain circles, it remains a relatively untapped market compared to the likes of Lisbon or Porto. This means property prices are still accessible, and the potential for appreciation is substantial. In recent years, property prices in the Algarve have seen a steady increase, yet they remain competitively lower than other Western European destinations1.
Investment Opportunities and Benefits
Investing in the Algarve offers several compelling benefits. Firstly, the region's booming tourism industry ensures a steady stream of rental income for property owners. The Algarve welcomed over 4 million tourists in 2019, a number that's expected to grow as travel resumes post-pandemic2. Additionally, Portugal's favorable tax regime for foreign investors, including the Non-Habitual Resident (NHR) tax program, provides significant tax breaks on foreign income, making it an attractive option for international buyers3.