Digital nomads in Portugal

Article By Goldcrest Real Estate and Global Citizen Solutions - Official Partners to KipperTree.

22 08 24

Digital nomads in Portugal, an opportunity for real estate investment in co-working spaces

Portugal has become a magnet for digital nomads, drawing a new wave of remote workers who are reshaping the country’s cultural and economic landscape. This transformation has not gone unnoticed by

savvy investors, who are increasingly eyeing the burgeoning opportunities in Portugal’s real estate market, particularly in real estate projects tailored to the needs of this growing community.

Portugal is ranked as the 7th best destination globally for digital nomads, reflecting the country’s appeal to those seeking both quality of life and professional flexibility. In 2023 alone, 2,600 digital nomad

visas were granted by the Portuguese Ministry of Foreign Affairs, and Lisbon has emerged as a hotspot, with over 16,000 digital nomads currently living in the capital.

There has been a significant shift in Portugal's appeal to global professionals, and the impact on the real estate market has not gone unnoticed. Gonçalo Peixoto, Head of Real Estate at Goldcrest, has first-hand seen the impact this has had on investment opportunities:

“Since the Covid pandemic, Portugal has become a preferred destination for remote workers seeking a high quality of life. In turn, this trend has led to the proliferation of coworking and coliving spaces across

the country, with Lisbon and Porto hosting most of these services. Investment yields in this sector can be predicted at 5% to 7% a year.”

What’s the appeal of Portugal?

Portugal’s Digital Nomad Visa has proven to be a significant draw for remote workers and entrepreneurs. Offering both a one-year stay and a five-year residency permit with the option to renew, it provides a

flexible and accessible route for those looking to settle down in Europe. This, combined with an already thriving community of digital nomads, has sparked the development of real estate projects specifically

designed to cater to this dynamic group. 

"As the most economical country in Western Europe, Portugal offers a cost-effective lifestyle with a high standard of living. English is widely spoken, making it easier for expatriates to integrate into the local community. The country also provides pathways to residency through the D7 and D8 visas, which can lead to permanent residency and eventually citizenship," - adds Gonçalo.

Beyond the visa benefits, Portugal’s emergence as a major tech and startup hub adds another layer of appeal. Lisbon alone is home to more unicorns per capita than neighbouring Spain and Italy combined.

Startups based in the capital were valued at €21 billion as of 2022 - 26 times higher than in 2016. Similarly, the investment in Lisbon’s startup scene has grown by 30% annually since 2016, double the

average across Europe. Programs like Startup Madeira exemplify Portugal’s commitment to fostering innovation, drawing both local and international entrepreneurs, and creating a supportive ecosystem for digital nomads.

As Micaela Vieira from Startup Madeira explains:

“It has been quite interesting to see projects and entities taking advantage of this initial market, visiting the island and adapting their service and project to the people visiting the island… In the end, it's all

about people. It's about community. It's about the authenticity of the destination, in this case of Madeira.

And for us, it has been quite interesting to keep working on this niche market and to see Madeira put on the map for nomads.”

According to Micaela, in 2020 alone, the Regional Government of Madeira received over 190000 digital nomad registrations on the island.

The combination of a welcoming visa process and a powerful entrepreneurial environment has fueled a surge in demand for real estate that caters to this growing community of digital nomads, creating

the optimal investment climate in Portugal.

Investing in Coliving and Coworking Projects: A Prime Opportunity for ROI

The surge in digital nomadism has naturally led to an increased demand for coliving and coworking spaces. Investors who are keen to capitalize on this trend can expect to see promising returns. According

to Coworking.com, there are currently over 260 coworking spaces available in Portugal, a number that has significantly risen post-pandemic. With high demand from digital nomads, investors in this sector can

anticipate annual yields of 5% to 7%. Michaela has noted a shift toward the adaptation and creation of new local businesses and solutions tailored to the niche market of digital nomadism.

“Examples of prime investment hubs include new workspaces, co-living arrangements, and travel experience agencies catering specifically to remote workers. These initiatives have been driven by private

entrepreneur and stakeholders, organizations, and community managers.” 

With demand consistently outstripping supply, particularly in hotspots like Lisbon and Porto, returns of 5% to 7% are well within reach, offering both immediate and long-term financial benefits hard to find elsewhere.

A solid example of this investment potential can be found in the region of Madeira, where remote workers contribute approximately €1.5 million each month to the local economy, according to Startup Madeira.

Unique real estate projects ripe for exploration

There is already a wide array of real estate projects emerging to cater to the specific needs of digital nomads, offering enticing opportunities for investors. These projects are diverse, ranging from coliving

and coworking spaces to specialized developments designed for community living and remote work.

In Lisbon, the Gloria 70 Apartments, located on the prestigious Avenida da Liberdade blend both coliving and coworking concepts into one development. These apartments are thoughtfully equipped with facilities tailored to meet the rising demand for community-driven living and flexible working environments. In Porto, Outsite Porto stands out as a popular choice for digital nomads. This coliving space combines stylish accommodation with shared workspaces, and as part of a global network known for its appeal to remote workers, it offers flexible stays and a vibrant, community-focused atmosphere.

The appeal isn't limited to the mainland. In regions like Madeira and Braga, projects such as the Ponta do Sol Coliving in the Digital Nomad Village; are thriving. These initiatives cater directly to the needs of the

digital nomad community, further solidifying Portugal's reputation as a haven for remote workers.

“With the vast number of tech and startup companies hosting their headquarters in Portugal, remote workers are looking for spaces where they can settle and also grow their business,” - adds Gonçalo.

Image by Bruce Mars