Buying for lease is one of the safest and most consistent ways to generate passive income. Lisbon continues to show strong demand for rentals, both long-term and short-term (tourist).
✔ Average profitability: 4% to 7% per year, depending on the location and type of lease.
✔ Recommended areas: Historic center, Avenidas Novas, Parque das Nações and emerging areas such as Marvila.
✔ Target audience: Students, expatriates, families and tourists.
Properties close to public transportation and business areas tend to have a higher occupancy rate.
Real estate flipping consists of buying properties below market value, rehabilitating them and reselling them for a profit. It is a strategy widely used in urban requalification areas.
✔ Advantage: Profit margins between 15% and 30% per transaction, depending on the investment and location.
✔ Critical factors: Renewal costs, time to sell, and market situation.
✔ Recommended areas: Arroios, Anjos, Alcântara and Graça (accelerated enhancement areas).
Investing in properties with architectural potential and modern finishes can generate above-average appreciation.
Off-market real estate is undisclosed properties that are only available to qualified investors.
✔ Advantage: Greater possibility of direct trading and buying at prices below the market.
✔ Exclusive access: Only available through specialized networks, such as PRIVESTO.
✔ Ideal for: Investors looking for strategic assets and guaranteed appreciation.
Working with experienced real estate consultants increases the likelihood of accessing unique opportunities.
Real estate development involves the construction or rehabilitation of buildings for sale or rent.
✔ Investor profile: Capital available for medium/long-term projects.
✔ Recommended areas: Belém, Campo de Ourique and Marvila (areas with strong growth).
✔ Risk and return: Larger projects offer higher profit margins, but require specialized planning and management.
Analyze the PDM (Municipal Master Plan) to identify areas for requalification and construction potential.
For investors looking for diversification and less direct involvement, real estate funds can be an attractive option.
✔ Benefits: Professional portfolio management, shared risk and increased liquidity.
✔ Types of funds: Income funds (leasing) vs. enhancement funds (rehabilitation and development).
✔ Investor profile: Suitable for those who want to invest in diversified assets without having to directly manage the properties.
Evaluate the fund's track record and profitability strategy before investing.
Each strategy has advantages and challenges. The secret to successful investing is to align your chosen strategy with:
✔ Your risk profile.
✔ The capital available for investment.
✔ The expected deadline for return.