Brussels approves €813 million for the Porto – Lisbon high-speed line
2024-07-22
For more details on the high-speed train line and its investment potential, check out the latest Eco Sapo article, Porto News article, Railway Technology, as well as this English version of the Portugal News article.
News for you that seems to have flown under the radar! The European Commission has just greenlit a whopping €875 million for the Porto-Lisboa high-speed train line.
This development is a golden opportunity for smart investors like you to secure above-average rental gains by investing in properties near the train line stops, especially in the Áreas de Reabilitação Urbana (Urban Rehabilitation Areas).
Why This Matters:
The new high-speed train line will connect Porto and Lisboa in just 1 hour and 15 minutes, making travel between these cities faster and more convenient. This will make areas around the train stops highly desirable for both residents and businesses, driving up property demand and rental yields.
High-speed rail projects around the world, like those in Japan and Europe, have consistently boosted local economies and increased property values . These projects attract businesses, tourism, and more, creating a ripple effect of economic benefits.
What is "Áreas de Reabilitação Urbana" (ARU):
The Portuguese government’s National Investment Plan 2030 includes significant funding for Áreas de Reabilitação Urbana. These designated urban rehabilitation areas focus on revitalising historic and central urban areas, enhancing infrastructure, and improving the quality of life for residents. By investing in these areas, you can benefit from numerous incentives such as tax breaks, subsidies, and grants.
Click here to find out more about the ARU
How You Can Benefit:
Short-Term Rental Demand: With many workers and contractors coming into the area for the construction and operation of the train line, there will be a huge demand for short-term rentals. Investing in properties within ARUs can help you cater to this demand, generating steady rental income.
Long-Term Rental Demand: Improved connectivity will attract permanent residents looking for easy access to major cities. Properties in ARUs are often in central locations, making them highly attractive for long-term rentals.
Property Appreciation in Growing Cities: The areas around the new train stops, like Vila Nova de Gaia, Aveiro, Coimbra, Leiria, Braga, and Santarém, are expected to grow significantly. As these cities develop and their urban centre's are revitalised through ARU initiatives, property values will rise, providing substantial appreciation over time.
Future Value of Properties: Properties within an hour's drive of the train stops and construction locations will become increasingly valuable. As accessibility improves, these areas will become prime spots for both residential and commercial development, leading to higher future property values.
Government Incentives: The Portuguese government offers various incentives for investing in ARUs, which are part of the National Investment Plan 2030. These include tax benefits, financial support for rehabilitation projects, and grants aimed at promoting economic development and reducing regional disparities. By investing in ARUs, you can benefit from enhanced profitability and lower upfront costs.
Benefiting Locations:
Vila Nova de Gaia: Significant transformation with the construction of a new underground station at Santo Ovídio, making it a prime spot for residential and commercial investments within the ARU.
Aveiro: Known for its canals and vibrant culture, Aveiro will become even more attractive with improved connectivity to major cities, boosting property values and rental demand within the ARU.
Coimbra: Home to one of the oldest universities in Europe, Coimbra will benefit from better accessibility, making it an ideal location for student housing and academic-related investments within the ARU.
Leiria: Currently undergoing urban development, Leiria will see accelerated growth and increased property demand due to enhanced connectivity with the high-speed train line and ARU initiatives.
Braga: As one of Portugal’s fastest-growing cities, Braga’s inclusion in the ARU and its improved connectivity through the high-speed train line will significantly boost property values and rental yields.
Santarém: This historic city will benefit from revitalisation efforts within its ARU, making it a desirable location for both residential and commercial investments, especially with the new train line improving accessibility.
Timeframe for Construction:
Construction of the high-speed train line will be done in phases. The first phase, covering the section from Porto to Soure, will start in 2024 and is expected to be completed by 2028. This phase includes significant infrastructure works like tunnels and bridges.
The second phase, from Soure to Carregado, will begin in 2026 and should be finished by 2030. The final phase, connecting Carregado to Lisboa, is planned for post-2030.
What This Means for the Future:
The areas around the new high-speed train stops are set to become vibrant hubs of activity. Investing in these areas now means getting in on what will become some of the most desirable locations in Portugal. The long-term benefits include not only higher rental yields but also substantial property appreciation as these regions develop.
Act Now:
Don’t wait! The early bird gets the worm, and in this case, the highest returns. Whether you’re interested in short-term rentals, long-term rental properties, or investment properties with future appreciation potential, this is your chance to get ahead.
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Note: The insights shared in this newsletter are based on our experience and understanding of the Portuguese property market at the time of writing. They are provided for general information only and are not a substitute for personalised financial, legal, or tax advice. Regulations and market conditions can change, and outcomes may vary depending on individual circumstances. We always recommend consulting with qualified professionals before making investment decisions.