Sunny Porto in 葡萄牙 is the perfect place for a happy work-life balance. It’s a safe city comprised of a rich culture and heritage, a booming tech-driven economy and a renown Research and Development environment. In addition to this, the city has a plethora of high-quality health services, international schools and excellent flight connectivity.

波尔图 is also known for being very welcoming and open to foreigners. This allows for easy cross-cultural integration, whilst offering a unique quality of life for everyone who has chosen Porto as their home.

In 2018, Porto was crowned Europe’s most start-up friendly city by The World Excellence Awards, following on from the successful Scale-Up Porto initiative launched back in 2015.

The aim was simple: support the growth of local tech start-ups with the potential to scale internationally and position Porto as a city open to creativity, innovation and entrepreneurship.

The current ecosystem provides 69 research and development centres, 20 incubators, 14 co-working spaces, and 8 technology and transfer centres.

The city is now a pioneer in the creation of tech start-ups, accounting for 36% of the national total and home to several leading high-tech companies. Porto’s top start-ups include: Farfetch, Porto.io, Opolab, NOW, Porto Innovation Hub and Muratto Open Space Porto. A flourishing market has subsequently evolved within the city, as it continues to draw in a growing pool of talented workers and students.

Why is Porto thriving as a start-up hub?

An esteemed business mentality is not new to the running of 波尔图, as Rui Coutinho, Executive Director of the Centre for Business Innovation explains, “our DNA is one of business people, manufacturers, industrialists and traders. There is a strong and long entrepreneurial background to the city”.

波尔图 is also Portugal’s leading education hub, attracting 72,000 students (the country’s highest number of students in higher education) and is home to several of the country's best universities.

The city's large pool of highly qualified, multi-lingual, and extremely motivated graduates has fostered Porto's importance as an area to produce entrepreneurs and start-up founders.

This in turn has made Porto the industrial and business hub of the country, as opposed to its sister, Lisbon, which is very much the creative and tourism hub of Portugal.

Why is Porto property a great investment?

Porto is experiencing soaring rental and property prices. House prices in the city’s historic centre have more than doubled since 2014, albeit from a lower base. Like other Portuguese cities, Porto is suffering from a residential supply shortfall and property prices will continue to rise. As of Q1 2020 the city saw 19% annual growth in house prices.

In the last two years there has been significant redevelopment efforts across the city; large public investment in new roads, libraries and universities are providing a welcomed facelift to the city. Previously run-down buildings in the city centre are being refurbished and these projects are rightfully attracting international capital.

Despite mounting demand, the square metre price of property in Porto remains lower than Lisbon and more affordable than other global investor hotspots. A 300% increase in jobs created by foreign investors was seen between 2013-2016 and in late 2018 Amazon announced it would be opening a new European base in the city.

According to EY’s European Investment Monitor, Porto’s levels of foreign direct investment (FDI) grew at a rate of 11.4% between 2013 and 2018. This growth rate is faster than other Portuguese regions as well as the EU average.

The 2020 EY Portugal report tracked 51 FDI projects across Northern Portugal accounting for 5,722 new jobs. This equates to an 88% annual increase in FDI projects and a 93% annual increase in the number of jobs created to 2019.

Porto’s investment profile is strengthening not only in Portugal but worldwide. Future forecasts remain strong and robust. To take advantage of this unique investment opportunity, see IP Global's latest Porto residence below.

Litoral Living is IP Global’s second development in Porto and is located within the southern part of the Matosinhos neighbourhood. If you would like to find out more about investment opportunities in 波尔图 and Litoral Living, contact us today.

Long considered Lisbon’s quieter sibling, Portugal’s second city is undergoing an incredible moment of transformation. On the steep banks of the Douro River, Porto is establishing itself through its rich culture, thriving culinary scene, and growing student population, as well as being one of Europe’s leading start-up centres.

Portugal’s property markets are currently some of the most attractive in Europe. More than just a desirable holiday destination, the country is now also a hotly desired place to live and invest in. Portugal’s northern jewel is playing an instrumental role in the country’s revival and we expect Porto’s growth to continue.

So, why is IP Global investing in Porto?

strategic location

This Unesco heritage city in Northern Portugal is strategically located within a well-connected region. Already attracting record tourism levels – Portugal saw double-digit growth in visitor numbers every year between 2014 and 2017 – Porto is increasingly appealing to students and young professionals looking for an alternative to other, more expensive European hubs.

Only a 3-hour train ride from Lisbon and with over 8,000 weekly flights to international destinations, Porto offers residents and visitors an ideal position within the continent.

education

Home to The University of Porto, the city hosts over 72,000 higher education students and is known as the main university hub within Portugal. With the highest number of students in higher education in Portugal, the University of Porto is Portugal’s highest ranked institution, according to the QS World University Rankings 2018. Other universities, including Porto Polytechnic and Porto Business School contribute to the city’s energetic student population and attract a high number of international students.

With only 1,250 dedicated university or religious housing units available in Porto, the majority of students in the city must rent in private accommodation, which is good news for property investors.

technology hub

Thriving business is not new to Porto. ‘Our DNA is one of business people, manufacturers, [industrialists] and traders. So there’s a strong and long entrepreneurial background to the city,’ explains Rui Coutinho, executive director of the Center for Business Innovation at Porto Business School.

Historically, foreign investment in the Porto region took the form of blue-collar factories from IKEA, Continental and Bosch. However, more recently, these companies have upgraded and expanding into technological development, creating some of the most innovative centres within their sectors.

In 2018, The World Excellence Awards named Porto Europe’s ‘Best Start-Up Friendly City’. ScaleUp Porto is an initiative launched by the Camara do Porto in 2015 aimed at supporting the growth of local technological start-ups with the potential to scale internationally. ScaleUp has been instrumental in successfully positioning the city as a European hub open to entrepreneurs. The city is now a leader within Portugal, accounting of 36% of the nation’s total number of technological start-ups and housing offices of Farfetch, BLIP, Critical Software and Talkdesk, among others.

infrastructure improvements

Porto has world-class infrastructure systems and is only improving its offerings. The Porto Airport is an award-winning and highly connected hub, and an international entryway to Europe. One of the best airports in Europe, it served almost 12 million passengers in 2018 and offers flights to over 110 destinations.

Reaching key European cities including London, Paris, Frankfurt or Rome within three hours by air, future route expansions by Ryanair and Emirates will encourage increased levels of traffic.

The Leixões port, just outside Porto, serves as a logistics platform to the city and the airport. Responsible for 20% of Portuguese international trade, it has also recently inaugurated a new cruise terminal in 2015 at a cost of EURO50 million which now sees tens of thousands of passengers every year.

Public transport in Porto’s city centre is reliable and good value for money, featuring an extended and diverse network of metro and tram systems, and various urban buses. Managed by a state-of-the-art contactless ticketing system, Porto also has the largest network of buses in the world that have Wi-Fi. An expansion of seven new stations is projected to be completed by 2022 and will increase ridership by an estimated 30,000 rides per day.

housing shortage

House prices in Porto’s city centre have more than doubled since 2014, albeit from a lower base, and demand will continue to exceed the city’s supply across the sales and lettings markets for the foreseeable future.

The housing shortage is driving even more rapid growth in the rental market, with the average rent nationwide increasing by 13% in 2018 alone. Porto’s growing tourism industry has led to many homeowners pursuing opportunities such as Airbnb, and subsequently the city’s housing supply for residents have become increasingly squeezed. Many of the one-bedroom units on the market are targeted at the large student population and growing entrepreneur base.

value

Lisbon has led Portugal’s property market story since the country’s recovery period began. Porto is approximately three to four years behind the capital, boasting greater value and strong growth potential.

Porto is a highly affordable major city in Western Europe. According to Porto.ForTalent, the living cost in Porto is 46% lower than Paris, 32% lower than Frankfurt, and 25% lower than Barcelona. Porto’s house prices also remain affordable in comparison to other global investor hotspots.

investor incentives

Investors are taking note that Portugal’s tax regime offers a low effective tax burden, free overseas remittances and no gift, inheritance or wealth tax. Property buyers whose purchase qualifies them for a Golden Visa are offered the additional benefit of being able to apply for Portuguese nationality to obtain an EU passport for both themselves and any dependents they have.

quality of life

Jose Neves, the founder and CEO of Farfetch has reflected that, ‘Porto quickly became an extremely attractive city to live in and invest. I believe that what really makes a difference are the people, the fact that the city is welcoming and that everything is close, the sea, the river and the best of Portuguese cuisine’.

The city offers 39 museums, 20 cinemas, 12 theatres, numerous art galleries as well as a busy cultural agenda throughout the year. Young and imaginative chefs are reinventing the region’s culinary traditions while artists are renovating previously neglected corners of the city. It is unsurprising that CNN has hailed Porto as Portugal’s ‘Most Creative City’ and in 2012, 2014 and 2017 the city was named Europe’s ‘Best Destination’ by Lonely Planet.

Consistently warm weather, a vibrant cultural life, a resurgent entrepreneurial scene, a world-class university and a unique city centre which carries a culture of diversity in its genes support Porto’s growing profile and government schemes will ensure that the attractiveness of Porto remains strong.