A Economic and financial instability The market continues to chase. Interest rates on home loans and financing for companies are rising, but term deposits show low returns. In this context those who have savings should think very carefully where to invest so as not to lose money as it grows. inflation, That still feels itself. According to experts, here, real estate emerges as a refuge, given its resilience in crisis situations. And buy house Then placing it for rent is firmly rooted in Southern Europe as an investment option. Incidentally, a recent survey showed that Portugal, Spain and Italy are the countries where more people are showing interest Monetization savings In that direction.
In the three southern economies of the old continent, at least two out of three are interested buy house Then assign the property rental market, Publishes the French platform Mathews Real estate investment specialist for rent. The data therefore show the attraction of families living in Portugal, Spain and Italy Buy a house to rent Other Central European countries have sparked interest through investment in this business – and many more.
“Buying a house to rent, in part, helps to solve the serious problem of housing for rent”, Beatriz Toribio, Deputy Director of Masteos in Spain
Based on a survey of more than 8,100 European citizens, the survey found Spain to be the only country where more than seven out of 10 people express interest. Rental housing investment (72%). Portugal soon followed, attracting about 7 out of 10 citizens Investing in rental properties (67%). In third place is Italy, where 64% of people are interested in doing this type of business.
More than half of respondents in the UK, France and Belgium said they were interested Invest in housing From a profitable point of view.
Countries that are less interested Rental housing investment The Netherlands (34%), followed by Germany (41%), shows the same study.
There is a simple explanation for these numbers: in fact, families in southern Europe prefer Invest in real estate Compared to other financial options, such as time deposits, buying shares or investing in cryptocurrencies. In Spain and Portugal, Real estate investment It is even the preferred option for individuals. The English and the Dutch love to bet Savings Account.
Currently, housing continues to be an option Profitable investment over the long term and which present less risk (compared to other financial products). This is exactly why residential market (as well as real estate as a whole) spurs interest, at a time when high inflation is crushing household savings; Deposits continue to provide low returns; and instability between in the stock market Installed in recent weeks, recent banking turmoil has put markets on high alert.
Despite the high interest, there is still a percentage of Portuguese, Spanish and Italian families who do not consider investing. house rent. Reasons cited in studies that justify this lack of interest include:
- lack of financial means to purchase a home;
- problems associated with such investments (for example, risk of non-compliance with tax and rent payments and tenants not ensuring maintenance of houses);
- Preference for investing in their own permanent home or a second home for vacation;
In addition, the respondent with low income Consider that Buy a property to rent This is an option reserved for people with high purchasing power, according to Mastios research.
How much does it cost to buy a rental house in Portugal?
the interest Investing in a rental home It exists in our country, according to research. And Antonio Costa’s government is now focusing on building more homes rental marketWith Mais Habitação, the IRS reduced rates on property income and took measures to protect landlords from default situations, making this business more attractive.
To proceed with such an investment, families need to know from the outset, how much it pays Buy houses to rent in Portugal. According to the latest data from Ideallista, the yield of buying a house for rent is 6.6% in the first quarter of 2023, which is higher than the value calculated for the same period in 2022 (5.6%), a study shows Idealist.
And where are the municipalities? Investing in a rental home More yields as early as 2023? According to the same survey, it was even behind Santarem (7.6%), Viana do Castelo (7.2%) and Leiria (6%). It is important to remember that the higher the profit of the business, the higher the investment risk.
mine too Housing affordability The minimum is received by the owners rental house in Lisbon (3.8%), Aveiro (4.3%) and Faro (4.5%). In Porto, investment in rental housing showed a return of 4.7%, according to the same study. Although in these cities Profitability of the house Low, business risk is also low, because from the beginning high Search houses for rent.
A Portugal housing affordability At the beginning of 2023, 6.6%, which was slightly higher than the profit obtained on garage rent (6.1%). On the other hand, home business Lower yields from office rents (8.8%) and stores (8.5%) in Portugal.
The profitability of housing in Spain is high…
In Spain, the Profitability of buying a rental house was higher than the national rate: 7.1% in the first quarter of 2023, according to a study by idealista. “In our case, the average investment ticket totals between 100,000 and 150,000 euros (including house purchase, fees and renovations) and the profitability is between 7% and 8%, although there are projects that reach a profitability of 15. % a Housing affordability has been positive even in times of crisis”, commented Beatriz Toribio, Deputy Director of Masteos in Spain.
Regarding the type of investor, Beatriz Toribio noted that, generally, they are individuals of a certain level savings And for whom there is no problem in getting funds buy a house Given its solvent profile. Additionally, these investors usually already own a home. Most are Spanish customers, although the weight of immigrants and foreign customers is increasing (especially French people or residents of Spain).
There are also other types of leased power acquisitions in the Spanish market. According to Masteos, there is growing interest room rent And looking for investors More stable leases, make long-term contracts. Madrid and Valencia are, among the larger cities, which have attracted the most interest over Barcelona.
Housing leasing is therefore a growing market. Beatriz Toribio recalls that “the Housing Main source of savings for Spaniards, but only 10% of credit operations Buying and selling Spain is carried out for the lease, against 30% in France, 21% in Germany or 17% in the United Kingdom”, according to Masteos data. Therefore, he adds, it is “a market that can grow further, because it is still very small in Spain, but Investment is very profitable and aroused great interest on the part of the Spaniards”.
In addition, he argues that this investment does not only allow families Monetize your savings For retirement and to have an economic cushion for contingencies, however, “contributes, in part, to solving serious problems. Housing offers for rent In Spain”. Investing in housing for rent is also, moreover, part of the growth solution Home offers in Portugal, which is equally scarce.