/
/
/
Investing in the Inevitable for Up to 47% Returns

6 de January, 2019

Investing in the Inevitable for Up to 47% Returns

Reading: 5 min

If you are more than twenty years old, you have already witnessed some phenomenon of transformation of your city.

The neighborhood had a bad reputation. No one of their own choosing would choose to live.

Over time the city grew and became more expensive and people with greater purchasing power and more open-mindedness arrived – usually outsiders who don’t care about reputation.

After a while, I couldn’t even afford to pay less anymore. The site has been consolidated with good options for trade and real estate of better quality.

It happened in the neighborhood of my childhood, in Berrini, in Perdizes, in Brooklin in New York and in other places around the world.

It is a natural movement in places with demographic expansion and no economic problems. It’s inevitable. Those who can smell these changes have a full plate – of appreciation. The previously undervalued neighborhood is climbing to be more accepted and start selling at prices closer to traditional regions.

At this very moment, the Campanhã region is undergoing this transformation. Reputation precedes it. It was already considered unsafe and relegated to the background – remembering that 5 years ago it was the very expensive historic centre of Porto that had the same reputation.

The change began with the Porto City Council investing heavily. There are more than €50 million in the transformation of the Slaughterhouse, which will become an office for technology startups and cultural center and ends with the expansion of the train station and subway that will add a bus terminal.

I know, I know, I know, I know, I know. Nothing may happen, but the slaughterhouse contract has already been signed and the construction company is Mota-Engil, the largest in the country. It’s gonna come out of the paper.

Even if it doesn’t, the transformation is already underway. The private sector believes so much that it has bought land and buildings for rehabilitation in the region. In particular, there are 3 buildings under construction – in addition to the various buildings already restored – on the main street of Campanhã, and for the time being the only one recommended for investment, Pinto Bessa.

It is on this street that the Pinto Bessa Development is being built. It’s the biggest and most complete. It has an enormous façade that was only possible by the aggregation of several lands. A large facade is more valuable and it will be very difficult for someone to repeat the feat of buying so many neighboring lands.

The cool thing is that since the developer knows he’s a pioneer, he also knows he can’t charge much, so he has the lowest prices for properties with tourist potential in Porto. While in Flores and Allados the square metre is only €5,000, in Almada and Santa Catarina it’s €4,000, in Pinto Bessa it’s less than €3,000.

To be exact, the 1-bedroom apartment with 64 sq.m. and a further 12 sq.m. of balcony is priced at €175,000 or €2,734 per square meter.

I researched in 110 developments in the city and found no real estate with tourist potential with more price comrade. You can search at will that you will not find anything cheaper with this quality in a main street of the city of Porto.

The developer has more than 10 years of experience and the construction with a large Portuguese company is already underway. Delivery in 2019.

The ready apartment is expected to be sold for at least €3,250 per square meter on delivery. And in 2 years the region will be consolidated to have a maximum discount of 15% over Almada and Santa Catarina, which represents an increase to the range of €3,400 / €3,500.

Buying at the plant and selling near delivery the expected return on invested capital (ROI) is 31% in about 1 year or €33,000 (R$150,000) for the investment in T1. For those who expect consolidation, the return in two years is 47% or €49,000 (R$215,000).

The revenue potential in tourist property in the region is €22,000 per year with a daily rate of €75 and 80% occupation, which represents a yield of 12.5% per year, which is 25% higher than the average for the city of Porto.

Want to know more about this opportunity?
Leave your contact.

Author: Marcio Fenelon
Real Estate Investment

Disclaimer

The report reflects only and exclusively the personal opinion of the expert.

The study is based on publicly available information considered reliable at the time of publication.

The content contains estimates based on expectations that are subject to change and may not be confirmed.

The addressees shall make their own analyses and take the investment decision solely on the basis of their own judgment.

Although the report is free of charge, Atlantic Bridge has entered into a partnership to receive compensation in the event of a business being completed.

Moving to another country is an exciting experience, but it can also be complicated when it comes to tax issues. To ensure a safe and successful move, it is important to count on…
The month of May is a time of intense movement in the university cities of Portugal. During this period, students and the community in general are counting down to…
Portugal is a country that is increasingly sought after by students from all over the world who wish to pursue a master’s degree abroad. This is mainly due to the high quality of education…
Have you ever compared the cost of living between Portugal and Spain with that of a US city like San Francisco? It is not surprising that many Americans are moving…
Facebook
LinkedIn
WhatsApp
Telegram

Author:

Atlantic Bridge

You may also like:

Visa for Portugal: What’s the Ideal Choice for Your Stay

Explore Portugal Visa Options: Tourism, Study, Work. Find the Best Visa for Your Stay. Simplify Your Travel Planning. Read More!

Author:

Atlantic Bridge

Reading: 17 min

25 de August, 2023

Government Approves Proposed Changes to the Law on Foreigners in Portugal

Portugal's parliament has approved the proposed changes to the Aliens Act. It is not yet known when the changes will take effect.

Author:

Atlantic Bridge

Reading: 3 min

26 de July, 2022

Spanish Citizenship Exams: DELE and CCSE

All individuals applying for Spanish citizenship through residency, option, or "carta de naturaleza" must take the CCSE and DELE exams, regardless of how long the candidate has lived in Spain.

Author:

Atlantic Bridge

Reading: 5 min

5 de June, 2023

Luxury Houses for Sale in Lisbon: Guide to Securing Yours

Looking for luxury houses for sale in Lisbon? You´re not alone: capital is the 2nd most sought after in Europe for this type of investment.

Author:

Atlantic Bridge

Reading: 13 min

22 de October, 2022

Franchises in Portugal

Franchises are widespread in the Portuguese country and range from real estate agents to supermarkets, insurance companies, and laundromats.

Author:

Atlantic Bridge

Reading: 8 min

14 de December, 2022

Taking a Dog to Portugal: How to Travel with Your Pet

Travel with your pet to Portugal: essential tips for bringing your dog. Make your journey easier and enjoy Portugal together!

Author:

Atlantic Bridge

Reading: 9 min

30 de August, 2023