Lisbon – Porto High Speed Line is an opportunity for investors!

Brussels has approved the allocation of 813 million euros in European funds from the Connecting Europe Facility for the construction of the first phase of the high-speed rail line between Lisbon and Porto.

Portugal submitted its application to the Connecting Europe Facility at the end of January, requesting 875 million to support the financing of this high-speed line. However, the amount granted was lower than the request. According to the latest presentation by Infraestruturas de Portugal, for the first stretch between Campanhã (Porto) and Oiã (Aveiro), 480 million euros were reserved, out of an estimated total cost of 1.78 million euros. For the second section, which will connect Oiã to Soure (Coimbra), 395 million euros are reserved, with a total planned investment of 1.918 million.

The new high-speed rail line will reduce the travel time between Porto and Lisbon to just 1 hour and 15 minutes, making the connection between the country’s two main cities faster and more convenient. All over the world, high-speed rail projects have not only boosted local economies, but also increased the value of properties that are in areas close to stations.

This project represents an exceptional opportunity for investors who wish to above-average rental income by investing in properties close to the high-speed rail stations, especially in urban rehabilitation areas (ARUs).

1. Real Estate Appreciation

The areas around the new stops, such as Vila Nova de Gaia, Aveiro, Coimbra, Leiria, Braga and Santarém, are expected to grow significantly. As these cities expand and their urban centers are revitalized through ARU initiatives, the real estate values tend to increase, providing substantial appreciation over time.

2. Future Increase in Property Values

Properties located within an hour’s drive of stations and construction sites can increase in value. With improved accessibility, these areas are now prime locations for residential and commercial development, resulting in higher property values in the future.

3. Government Incentives

The Portuguese government offers several incentives for investments in Urban Rehabilitation Areas (ARUs). These incentives include tax benefits, financial support for rehabilitation projects, and grants aimed at promoting economic development and reducing regional disparities.

Vila Nova de Gaia is one of the cities that will benefit from this investment, since a new metro station in Santo Ovídio is already under construction, becoming a privileged location for residential and commercial investments within the ARU.

The construction of the high-speed rail line will be done in phases, with the first phase expected to start in 2024. If you are an investor, don’t miss this opportunity! If you are interested in short-term rentals, long-term rental properties, or investment properties with potential for future appreciation, this is the time to invest.

The Old Distillery project is a private residential condominium consisting of four distinct buildings: the main buildings and an old 19th-century mansion. This development consists of 102 units, from studios to 4-bedroom apartments and a magnificent garden that connects all social spaces. This project is located in an ARU Area, very close to one of the new metro lines already under construction.