All Forum Posts by: Joao Antonio

Hello,

Just sharing some short term market data about the area of Arronches / Portalegre, in case someone is thinking about investing in that area.

#

These are just the average values, then the top rental properties by revenue (EUR) are:

1st - 84.912 EUR: www.airbnb.com/rooms/1005100

2nd - 82.219 EUR: www.airbnb.com/rooms/15247902

3rd - 79.497 EUR: www.airbnb.com/rooms/13569807

#

I also have the data by category of property (studio, 1 BR, 2 BR, etc) in case someone is interested.

Be well.

Hello,

I’m currently investing in some units in the village of Sagres (Algarve) and prior to this process, I’ve done a market analysis for the short term rental market, which I have in mind for my properties. I’m sharing the findings here in case it’s useful to someone else:

Units / types of units

Occupancy rates 2021:

Revenue 2021:

Top listings by revenue (2021) by type

Bedroom (USD):

26,267 - www.airbnb.com/rooms/41946699
20,739 - www.airbnb.com/rooms/41933482

Studio (USD):

15,938 - www.airbnb.com/rooms/8772597

15,513 - www.airbnb.com/rooms/43720842

15,505 - www.airbnb.com/rooms/43712535

1 Bedroom (USD)

46,729 - www.airbnb.com/rooms/43712535

41,631 - www.airbnb.com/rooms/44736230

34,878 - www.airbnb.com/rooms/43712535

2 Bedroom (USD)

46,764 - www.airbnb.com/rooms/44740576

46,753 - www.airbnb.com/rooms/27948666

46,568 - www.airbnb.com/rooms/35230483

3 Bedroom (USD)

65,067 - www.airbnb.com/rooms/30168418

62,927 - www.airbnb.com/rooms/30929693

60,572 - www.airbnb.com/rooms/7944597

4 Bedroom (USD)

95,798 - www.airbnb.com/rooms/4614025

78,379 - www.airbnb.com/rooms/21680999

72,150 - www.airbnb.com/rooms/23319248

+ 5 Bedroom (USD)

71,752 - www.airbnb.com/rooms/35859851

53,277 - www.airbnb.com/rooms/5413799

26,563 - www.airbnb.com/rooms/5281704

Other market info

- Average selling price m2: 2.680 EUR

- Average transaction value: 155K EUR

- Average rent (long term) per m2: 4.9 EUR/m2

The numbers were collected from a pricing software that we use to manage the pricing of apart-hotel units we operate.

With this information I was able to calculate the maximum I would be able to pay for property (including works, buying costs, etc), to have an edge for a positive cash on cash return.

Joao Antonio

Hello,

I’m currently investing in some units in the village of Sagres (Algarve) and prior to this process, I’ve done a market analysis for the short term rental market, which I have in mind for my properties. I’m sharing the findings here in case it’s useful to someone else:

Units / types of units

Occupancy rates 2021:

Revenue 2021:

Top listings by revenue (2021) by type

Bedroom (USD):

26,267 - www.airbnb.com/rooms/41946699
20,739 - www.airbnb.com/rooms/41933482

Studio (USD):

15,938 - www.airbnb.com/rooms/8772597

15,513 - www.airbnb.com/rooms/43720842

15,505 - www.airbnb.com/rooms/43712535

1 Bedroom (USD)

46,729 - www.airbnb.com/rooms/43712535

41,631 - www.airbnb.com/rooms/44736230

34,878 - www.airbnb.com/rooms/43712535

2 Bedroom (USD)

46,764 - www.airbnb.com/rooms/44740576

46,753 - www.airbnb.com/rooms/27948666

46,568 - www.airbnb.com/rooms/35230483

3 Bedroom (USD)

65,067 - www.airbnb.com/rooms/30168418

62,927 - www.airbnb.com/rooms/30929693

60,572 - www.airbnb.com/rooms/7944597

4 Bedroom (USD)

95,798 - www.airbnb.com/rooms/4614025

78,379 - www.airbnb.com/rooms/21680999

72,150 - www.airbnb.com/rooms/23319248

+ 5 Bedroom (USD)

71,752 - www.airbnb.com/rooms/35859851

53,277 - www.airbnb.com/rooms/5413799

26,563 - www.airbnb.com/rooms/5281704

Other market info

- Average selling price m2: 2.680 EUR

- Average transaction value: 155K EUR

- Average rent (long term) per m2: 4.9 EUR/m2

The numbers were collected from a pricing software that we use to manage the pricing of apart-hotel units we operate.

With this information I was able to calculate the maximum I would be able to pay for property (including works, buying costs, etc), to have an edge for a positive cash on cash return.

Hi Kate,

I just came last week from Azores and it seems not only a beautiful place but also great potential for STR. I will soon share some numbers of an analysis I did for that market.

-> Where to find people (architects, surveyors, etc): it’s hard to find people who operate on a national level, except for the main real estate agents. My suggestion is to study first the numbers / cities / markets and once you know your zones / cities of interest, look for people who can help you locally. For that you can use Google, FB and even Upwork. I recently started working with a surveyor that operates nationwide (www.valtecsa.pt). They will evaluate the property, eventual costs with repairs, etc - depending on the service you asks and their fees are about 250 EUR per report. I can share my point of contact of interests you.

-> How i do it: I personally like to do market analysis and then i do drive throughs + online search (www.idealista.pt is one of the best ones)

-> Mortage brokers: maxfinance.pt, www.decisoesesolucoes.com/intermediacao-credito, www.cafpi.pt, https://www.planos100.pt

-> Rehab - funding: being a foreign it’s not a problem, you can setup a company and still apply. There are consulting companies who do this (for a fee) and i can also share some contacts if you need some. 

Hope it helps and have a lovely day!

Hello Kate,

Although I'm Portuguese, i left the country many years and in the last 10Y I've been living Belgium (Brussels), where together with my wife we have invested in real estate / property management.

Over a year ago we moved to Portugal (Lisbon) with the kids and we live between Brussels and Lisbon. Similar to what we do in Belgium, we will be investing in Portugal and we started analysing the market.

I have no knowledge on the VISA topic so can't help you on this one.

-> Regarding the short / long term rentals:

- short term: tourism is one of the main sources of income of the country and therefore has lots of potential. Having that been said, the barriers to entry are very low, which makes it one of the easiest countries for anyone to start doing Airbnb, when compared with other countries. The downside is that everyone does it and unless you have something quite unique, you will deal with lots of competition and seasonality. In addition, a trend has started in some cities (i.e Lisbon) to incentivise owners to move their Airbnbs to the long term.

If you would like to do a market analysis on the short term rentals, I can send you some links of tools that are helpful (i.e Airdna) where you can check occupancy rates, average rates, etc.

- long term: there is a shortage of properties in almost all cities and in some cases and that has contributed to an increase of rents and prices in double digits in some cases. i.e Mafra 10% rent increases last year and Setubal +15% price increase. With this in mind, doing the market research well is key and I can share with you some tools / websites that i used for my own (for example idealista data or national stats), so you can check in which cities population is growing (just a few), unemployment rates, rent/buying $ per m2, etc.  

-> Funding: you can consider as options mortage brokers who can scout/compare the best offers in the market and you can also consider public funding programmes that exists as an incentive to renovate and bring houses to the market, either for tourism or traditional rental.

As an example, on the traditional rental there is a funding program ("Arrendamento Acessivel") that funds up to 90% of the project and can be used to cover part of the renovation costs, as well as, part of the purchasing. The caveat is that until the loan is paid back, you must put it in LT rental at capped rents. For tourism you have several, including one (IFFRU) that can fund up to 100% of the renovation costs (no purchase).

You can do your own research but you have companies / consultants who this job for you and charge a success rate (pay only if funding gets approved).

-> Besides doing your market research, i strongly advise that before any purchase or offer, that you hire professionals to help you in the process. Hiring an architect to assist you costs a few hundreds of EURs and they will check that the property is legal, they will take the right measures (in the end you often buying per m2) and guide you along the process. Additionally, an "avaliador" is someone you can (i recommend) hire to give you an idea of the market value of the property. They do an inspection, look for potential costs with repairs and produce a final report. This also costs 200-300 EUR depending on what's included. This are the best few hundreds of EURs you will invest and can save you thousands.

On my case, i'm currently in the process of investing in 2 properties in Sagres for tourism, as the zone belongs to a natural reserve and supply is very limited (i also hired the 2 ppl i mentioned above). I'm also analysing cities to invest in multi-family.

Don't hesitate to reach out as I'll be glad to help if i can and I would love to hear about your journey investing in Portugal.

Cheers

Joao Antonio

Hi, you could use Airdna to see what others are pricing their properties in the area or you could use a spricing tool like PriceLabs which adjusts the price according to demand as well as any events, special holiday dates etc

Hi everyone, I am a Portuguese national who has recently decided to move back to PT with my family. I own a property management company and am looking to get into the investment game too and to meet people on a similar path. I see there has been some meet ups but due to the pandemic there havent been many recently. Could anyone share if there is any meet up organized soon or would people be interested attending one? Looking forward to it!