Portugal Among the Principal Destinations for Future Investment in Secondary Residences

30 October 2018

The owners of secondary residences generally intend to hold on to their properties as a long-term investment, while mostly investing in housing in their home countries, according to an international study by the Savills real estate consultancy.

Portugal and Spain will be the main destinations for future investments in secondary residences. According to an international study by the real estate consultancy, Savills, in conjunction with HomeAway, a specialist rental housing platform, homeowners generally expect to maintain these residences as long-term investments and invest, for the most part, in accommodations in their country of origin.

The study indicates that for most of the homeowners interviewed, a second home is a long-term investment. Only 8% of homeowners intend to sell their secondary residence next year, and 12% intend to do so in the next two to five years. With only 20% of the market coming up for sale in the next five years, owners are expected to maintain their residences for about 25 years, on average. During this period, in a time of low interest rates and modest capital growth, a large part of the property owners (43%) plan in renting their secondary residence for additional income.

Portugal and Spain are the main markets for future investments in secondary residences, followed by France, the USA and Italy. The Spanish local housing market has attracted increasing attention from buyers of secondary homes, who come from various parts of Europe and the world. Portugal, the second most popular spot, is seeing significant demand and is a favourite of the Dutch, French, Italian and Spanish.

Although Portugal and Spain were cited as the main destinations for future investments in secondary homes, most property owners revealed that their first choice for their next real estate purchase would be in their home country. This intention reflects a greater focus on income since knowledge of the local market and the greater facility for managing any accommodations can significantly increase the profits generated by secondary residences.

Original Story: Jornal Econômico

Translation: Richard Turner