Is buying a property in Marvila a good investment?

Last updated on December 29, 2023

Yes, the analysis of Lisbon's property market is included in our pack

If you've explored the emerging creative scene and historic charm of Marvila, you might have considered investing in property in this Lisbon district.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Portugal, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Marvila?

Marvila, a district in Lisbon, has emerged as a notable spot for property buyers, blending unique charm with promising investment potential.

This area differentiates itself from other real estate markets primarily through its eclectic blend of modernity and tradition. While much of Lisbon is characterized by historical architecture and classic Portuguese aesthetics, Marvila offers a refreshing contrast with its contemporary art scene, trendy cafes, and modern housing developments.

This blend of old and new creates a vibrant, dynamic community that's increasingly appealing to a diverse group of buyers.

The rise in Marvila's popularity can be traced back to the early 2010s. It was around this time that the area began its transformation from an industrial zone to a hub of cultural and urban renewal.

This shift was partly driven by the city's broader efforts to revitalize its eastern districts, turning neglected areas into lively, desirable places to live and work.

Unlike more established areas of Lisbon, which have seen property prices soar, Marvila still offers relatively affordable options, making it an attractive investment for those looking to enter the Lisbon real estate market.

However, it's important to note that with rising popularity, prices in Marvila are also gradually increasing, although they remain competitive compared to more central locations.

The kind of people attracted to Marvila are as varied as the district itself. It's become a magnet for young professionals, artists, and expatriates drawn by its creative energy and more accessible property prices.

The area's growing reputation as a center for art and design, combined with new residential and commercial developments, is particularly appealing to those who value a modern lifestyle within a historical city.

However, like any up-and-coming area, Marvila has its drawbacks. The rapid pace of development can sometimes overshadow the needs of long-term residents, leading to concerns about gentrification.

Additionally, while the district is becoming more connected to the rest of Lisbon, its public transport options are still not as extensive as in more central areas, which could be a drawback for those reliant on public transportation.

Furthermore, the ongoing construction and redevelopment projects can be a source of disruption for current residents.

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Why is Marvila a nice place to live?

Living in Marvila, offers a unique blend of lifestyle and culture, making it an appealing place for many.

The area has undergone significant transformation, evolving from its industrial roots to a vibrant, contemporary neighborhood. This change has been marked by an influx of art galleries, trendy cafes, and creative spaces, injecting a fresh and dynamic energy into the district.

The presence of these cultural hubs, alongside traditional Portuguese establishments, provides a fascinating mix of old and new, catering to a variety of tastes and preferences.

The expat community in Marvila is thriving, thanks in part to the area's relative affordability compared to other parts of Lisbon. This affordability has attracted a diverse group of people from around the world, contributing to the area's cosmopolitan atmosphere.

Expatriates often find Marvila appealing because of its modern vibe, coupled with the charm of living in a historic European city.

In terms of living costs, Marvila is generally considered more affordable than the more central districts of Lisbon. As the area grows in popularity, there has been a gradual increase in prices, though they still remain reasonable compared to other European capitals.

The cost of living here includes housing, utilities, and day-to-day expenses, all of which are generally in line with what one would expect in a major city.

Safety in Marvila is comparable to other urban areas in Lisbon. As with any city neighborhood, it's always wise to be aware of your surroundings, but residents generally feel secure in their day-to-day life.

Amenities and facilities in Marvila cater to both the needs and comforts of its residents. For educational needs, schools like Agrupamento de Escolas D. Dinis provide options for families.

Healthcare facilities, including Hospital de Santa Maria, ensure access to medical care. Shopping needs can be met at local markets and nearby shopping centers like Centro Comercial Vasco da Gama. These amenities enhance the convenience of living in Marvila.

The infrastructure in Marvila is continually improving. The roads and utilities are being upgraded to keep pace with the area's development. Internet connectivity is generally good, a necessity for both locals and the expat community, particularly for those who work remotely or run businesses.

Accessibility is a key feature of Marvila. It's well connected to other parts of Lisbon, making it easy to explore the rest of the city. Proximity to major transport hubs like Lisbon's airport adds to its convenience, especially for those who travel frequently.

Public transportation options in Marvila are adequate and improving. The area is serviced by various bus routes, and the expansion of metro and tram lines is in the works. This network makes commuting and traveling around Lisbon relatively straightforward from Marvila.

Overall, Marvila offers a blend of urban living with a unique cultural twist. Its evolving landscape, combined with its relative affordability, safety, amenities, and growing connectivity, makes it a desirable place to live for both locals and expats alike.

The balance of modern conveniences with the charm of Lisbon's rich history creates a living experience that is both comfortable and exciting.

How much does it cost to buy real estate in Marvila?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Portugal.

Buying a property in Marvila can be an exciting prospect given the variety and evolving nature of the real estate market there.

In Marvila, you'll find a diverse array of residential properties, including apartments, houses, and some luxury villas. The most common type of property you'll encounter is apartments, ranging from modern, newly developed complexes to older, more traditional buildings.

The demand for these apartments, especially the contemporary ones, is high due to Marvila's growing popularity as a modern, yet culturally rich, district.

Regarding the types of properties available, Marvila has seen a mix of both new developments and resale properties. In recent years, there has been a significant push towards developing new residential complexes, catering to the growing demand for modern living spaces.

These new developments are often equipped with contemporary amenities and are designed to suit the needs of a diverse populace, from young professionals to families.

The price range for properties in Marvila varies. Currently, the prices per square meter can range significantly, but generally, you'll find that Marvila offers more competitive rates compared to more central areas of Lisbon. It's important to note that these prices have been on an upward trajectory over the past few years.

This increase is a reflection of Marvila's growing popularity and the overall development of the Lisbon real estate market.

The changing landscape of Marvila, with its ongoing and upcoming developments, is crucial to understanding the future of property values in the area.

There are several new projects and city planning changes underway that are expected to further enhance the appeal of Marvila. These developments not only add new residential options but also enhance the overall infrastructure and amenities of the neighborhood.

Predicting the future of the real estate market in Marvila suggests a continued upward trend in property values. This prediction is based on several factors, including the ongoing development projects, the area's increasing popularity, and its growing reputation as a dynamic and culturally rich district.

Furthermore, the trend of urban renewal and investment in areas like Marvila is a strong indicator of potential growth in property values.

Factors indicating a potential increase in value include the continuous influx of new residents and investors, improvements in infrastructure, and the expanding cultural and commercial offerings in the district.

These elements combined make Marvila not just a place to live, but a lifestyle choice for many, thereby boosting its appeal in the real estate market.

Where is the best area to buy a property in Marvila?

When considering the best area to buy a property in Marvila, it's important to understand that Marvila itself is a diverse district with varying atmospheres, property types, and prices across its different parts.

The choice of the best area largely depends on what you're looking for in terms of lifestyle, investment potential, and budget.

Different parts of Marvila offer different living experiences. Some areas are bustling with artistic energy and are home to many galleries, trendy cafes, and creative spaces. These areas are perfect if you're seeking a vibrant, youthful environment.

On the other hand, there are quieter, more residential parts of Marvila that offer a more laid-back lifestyle, suitable for families or those who prefer a more tranquil setting.

In terms of property types, Marvila boasts a mix of traditional Lisbon architecture and modern developments. You can find classic Lisbon apartments with their unique charm in certain parts, while other areas are characterized by new, modern apartment complexes that offer contemporary amenities.

Prices vary accordingly, with newly developed areas generally commanding higher prices due to their modern facilities and design.

There are certainly up-and-coming areas within Marvila that prospective buyers should be aware of. These areas are often at the forefront of urban renewal projects and are likely to see an increase in value over time. One such area to consider is the riverside region of Marvila, which has been undergoing significant development.

This area offers beautiful views and is becoming increasingly popular for its proximity to the Tagus River, making it a desirable location for both living and investment.

For those looking to buy property in Marvila, it would be a good idea to explore areas around Largo do Calvário and along Avenida Infante Dom Henrique. These areas are well-connected and offer a good mix of residential comfort and access to amenities.

They strike a balance between the traditional and modern aspects of Marvila, offering a variety of property types to suit different preferences and budgets.

On the contrary, there are areas in Marvila that might not be as advisable for property investment. Some parts of the district, particularly those further away from the main thoroughfares and public transportation links, might not offer the same level of convenience or potential for growth as the more central or developed areas.

These areas might also lack some of the modern amenities and could be less appealing for rental or resale purposes in the future.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Portugal.

Area	Atmosphere	Property Types	Prices
Artistic and Vibrant Areas	Youthful, dynamic, full of galleries and cafes	Modern apartments, creative spaces	Varied, generally higher for modern properties
Residential Areas	Tranquil, family-friendly	Traditional Lisbon apartments, family homes	More affordable, varies with exact location
Riverside Region	Developing, scenic views of Tagus River	New developments, modern amenities	Higher, due to development and views
Largo do Calvário and Avenida Infante Dom Henrique	Well-connected, balanced lifestyle	Mix of modern and traditional properties	Moderate, good investment potential
Remote Parts of Marvila	Less convenient, less developed	Older properties, fewer amenities	Lower, limited growth potential

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Is there a strong rental demand in Marvila?

Marvila is experiencing a growing rental demand, a trend reflective of its evolving urban landscape and appeal to a diverse demographic.

Understanding the nature of this demand – whether it leans more towards short-term or long-term rentals – is key to grasping the potential of the rental market in this area.

Currently, Marvila is attracting both short-term and long-term rental interest, but the demand appears to be more pronounced for long-term rentals. This shift is primarily due to Marvila's emerging status as a residential neighborhood that combines modern living with a touch of Lisbon's traditional charm.

The area's continuous development, blending artistic spaces with new residential projects, makes it an appealing place to settle down for more than just a short visit.

The target demographic for rentals in Marvila is quite varied. It includes young professionals, both local and expatriate, drawn to the area's vibrant culture and modern amenities.

Additionally, there's a growing interest from families who appreciate Marvila's quieter, more residential zones, as well as its proximity to schools and parks. Students and academics are also part of the tenant mix, especially those associated with nearby educational institutions.

When it comes to the profiles of potential tenants, they are generally looking for properties that offer a blend of comfort and convenience.

Modern apartments, especially those with contemporary amenities like high-speed internet, modern kitchens, and energy-efficient systems, are particularly in demand. These renters are also attracted to properties that have easy access to public transport, local cafes, cultural spots, and green spaces.

Specifically, areas within Marvila like the riverside region and the vicinity of Largo do Calvário and Avenida Infante Dom Henrique are gaining traction among potential tenants. These areas offer the desired mix of urban living and accessibility to the rest of Lisbon.

To reduce vacancy, amenities that can add value include well-designed communal spaces, fitness centers, parking facilities, and robust security systems.

These amenities not only cater to the lifestyle needs of residents but also add a sense of community and safety, which are crucial factors for many when choosing a rental property.

Speaking of potential returns on investment for properties in Marvila, landlords can expect a healthy rental yield, although the exact figures vary depending on the property type and location.

Estimations suggest that rental yields in Marvila could range from moderate to high, especially for well-located and well-maintained properties. This is due to the rising demand and the area's ongoing development, which continue to drive up rental prices.

Properties experiencing increasing demand, and thus potentially offering better yields, are those that align with the preferences of the target demographic.

Modern apartments with eco-friendly features, smart home technologies, and those in buildings with shared amenities are becoming more popular. Such properties appeal to the lifestyle preferences of young professionals and families alike, who are a significant part of the tenant pool in Marvila.

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Is it easy to buy a property as foreigner in Marvila?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Portugal.

Buying a property as a foreigner in Marvila, Lisbon, is relatively straightforward, but there are some important considerations to keep in mind.

Portugal, including Lisbon and its districts like Marvila, is generally welcoming to foreign investors, and there are no specific regulations or restrictions uniquely targeting foreign buyers.

However, navigating the purchasing process, understanding local market nuances, and being aware of potential risks are crucial steps in making a successful investment.

The property purchasing process in Marvila for foreigners follows the standard procedure in Portugal. This typically involves finding a property, negotiating a price, signing a promissory contract (Contrato de Promessa de Compra e Venda), and then completing the transaction with a notary public.

During this process, a fiscal number (Número de Identificação Fiscal, NIF) is required, which can be obtained from the local tax office. It's also essential to open a Portuguese bank account for the transaction.

One primary risk associated with property investment in Marvila, as with any real estate market, is the potential for market fluctuations. Prices in Marvila have been rising due to its growing popularity, but market dynamics can change, affecting property values.

Additionally, as Marvila is an area undergoing significant development, there may be ongoing construction or planned projects that could impact the future livability or value of a property.

There are some classic pitfalls or common mistakes that people, particularly foreigners, face when buying property in Portugal. One unique aspect is the importance of thoroughly understanding the legal status of the property. This includes ensuring there are no outstanding debts or liens against the property and that it is correctly registered.

Another common issue is underestimating the importance of due diligence, especially regarding the property's condition and compliance with construction regulations.

Working with a local real estate agent or lawyer is highly recommended, especially for foreign buyers. A knowledgeable local agent can provide valuable insights into the Marvila market, assist in finding properties that meet your criteria, and guide you through the negotiation process.

A lawyer is crucial for ensuring that all legal aspects of the purchase are handled correctly, which is particularly important in a foreign legal system.

Common exit strategies for property investors in Marvila include selling the property for capital gains or renting it out for income. The rental market in Marvila is strong, particularly for long-term rentals, making it a viable option for investors looking for steady income.

Alternatively, given the area's increasing popularity and ongoing development, selling the property after some years could yield substantial capital appreciation.