Hedge funds are now allocating sums in the billions to Portugal, yet one of the country’s most respected developers says its real appeal is something a return on capital cannot capture.
Gerry Fagan, chairman of developers DDM, was speaking at the inaugural Portugal Investment Forum, a five-day touring debate on how to capitalise on the country’s economic growth. He told the audience in Lagos that Portugal is not a “get-rich-quick” market, and that this is exactly why it appeals.
The Irish entrepreneur has spent more than 25 years delivering homes and mixed-use projects in the Algarve.
For him, those who move to Portugal are buying into something beyond financial performance. “You’re not investing in a return if you come to live in Portugal; you’re investing in life. That’s a different style of investment.
“Generally speaking, all our clients are here to enjoy life.”
He says the country suits investors who value consistency over speed. “Portugal is not an economy that produces consistently very high returns all the time. But it produces reasonable returns. It’s a place for steady investment.”
He adds that the market is changing as hedge funds look at its potential and recent growth. “You’re not talking about a €40 or 50 million investment. In some cases, hedge funds are allocating maybe €1 billion.”
Existing assets such as golf courses and hotels are frequent targets. Rather than simply holding them, the developer says, the new owners are “coming in and they’re improving them”.
The result is financial returns for the funds, which in turn deliver for their investors.
Fagan also had a message for individuals thinking of investing. “For the people who are considering investing here, make sure you have the right professional people around you, to give you good advice.
“My family’s been raised here and we love Portugal.”
The Portugal Investment Forum was organised by Portugal Pathways and the Portugal Investment Owners Club.
About Portugal Investment Owners Club
The Portugal Investment Owners Club, or PIO Club for short, is a unique investor membership community designed for discerning individuals, families, and organisations committed to exploring and capitalising on life in Portugal and enjoying money-can't-buy experiences and exclusive events.
About Portugal Pathways
Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and provides expert guidance through its professional supply chain network on estate planning, wealth management, Golden Visa and tax optimisation, including post-NHR / IFICI tax regime planning, as well as private healthcare, money transfers and bespoke relocation and luxury real estate solutions to enhance life and investment in Portugal
Disclaimer: The information on the Portugal Pathways and Portugal Investment Owners Club (PIO Club for short) websites and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice. Golden Visa investments need to be held for 6 to 7 years to allow for permanent citizenship/passport in the EU.
