Cascais: The Portuguese Riviera
The Portuguese Riviera, which stretches from the West of Lisbon all the way to Sintra, is one of the most expensive coastline regions in the country. Amongst the cities making up the beautiful area, Cascais is one that especially stands out with its chic and tropical landscapes and its luxurious quality of life. From colorful Portuguese style mansions to new and modern beachside condos, Cascais has something to offer for everyone.
With its international schools, efficient public transportation system, as well as parks and beaches, the area is continuously attracting international investors and expats. One of the most attractive features of living in Cascais is the fact that one can enjoy the luxurious Riviera lifestyle – palm trees in their backwards and sun-soaked beaches all around – while benefiting from a cost of living which is still below the international market average. As Cascais is 45 minutes away from the capital city by train, many working professionals and families choose to have the best of both worlds by residing in the area and working in Lisbon.
Despite the current economic climate, the real estate market in Portugal remains stable and liquid. In Cascais, property prices remain high, particularly in the luxury segment, as demand continues to exceed supply and the region continues to attract international investors, expats and Portuguese natives alike. According to JLL's Q2 market pulse report, the cost of real estate for the area of Cascais/Estoril has remained stable with an average sales price of €8,000 to €10,500 per square meter –the upper bound representing the average sales price for new builds or high-end properties. Moreover, in the second quarter of the year, the median house rental value in the district of Cascais increased by +19.6% compared to the previous year.
The demand for properties in Cascais is not expected to decrease as buyers from this market segment tend to be high-income families that turn to prime real estate investment during high inflationary periods. Also, since these investors tend to be marginally less affected by increasing mortgage rates, the interest of diverse investors in Cascais’s property market is expected to persist. Purchasing a property on the Portuguese Riviera should thus be considered a long-term investment considering the robustness of its property market.
Market Research Analyst at EQTY Capital
References: National Institute of Statistics (INE) & JLL