Diversification and New Developments in Portugal: Recession-Proof Real Estate Strategy
When building a real estate portfolio that can weather a recession, diversification and investing in new construction properties are two strategies that can help secure long-term success. As a real estate investment specialist, I am often asked about the best ways to build a strong portfolio in Portugal, and there are several steps investors can take to mitigate risk and increase their chances of success.
Investing in new construction properties offers many benefits over existing properties. However, I believe there are three key points to consider when investing in off-plan properties:
Location, Location, Location: One advantage of investing in Portugal is that there are plenty of options for new construction in prime locations throughout the cities, unlike in other major European cities where new construction is often limited to upcoming areas away from city centres.
Less Maintenance: New properties require less maintenance and repairs, saving investors money over the long term. Additionally, new properties offer modern amenities and features that can attract high-end renters or buyers and command higher rents or sale prices.
Appreciation: Appreciation is one of the most attractive benefits of real estate investing, and with new construction properties, this benefit can be even more significant. The value of the land can increase dramatically as a new property is built and the surrounding area develops.
To further mitigate risk and increase the chances of success, investors should consider diversifying their portfolios across multiple properties and markets. This approach can help protect against individual property or market downturns, reducing overall risk.
Diversification and investing in new construction properties are just two of many strategies investors can use to build a recession-proof real estate portfolio. By working closely with a knowledgeable real estate agent or investment advisor, investors can develop a personalised strategy that meets their individual goals and risk tolerance.
In Portugal, there are many opportunities for real estate investment in off-plan properties, especially in Lisbon and Porto. With a growing economy and a steady influx of tourists and expats, the Portuguese real estate market is expected to expand further in the coming years.
If you have any additional thoughts or questions about real estate investing, please don't hesitate to reach out. I am always eager to share my knowledge and learn more about the challenges that investors face.
www.hillforte.com
