TheMoveChannel.com, the UK and international property portal, reports on Maexpa International’s Porto Oriente development, which has been specifically designed to satisfy a shortage of student accommodation in the University District in Porto (Portugal).
Taking into account the staff at the University and the nearby Hospital S. João, there are more than 40,000 people working in the vicinity, ensuring that rental demand for apartments will always be strong. The level of development in the surrounding areas highlights the need for high quality apartments that are tailored to the student market.
Porto Oriente, situated at the heart of the University Campus, is an ideal investment product for the ‘armchair’ investor, without the need to manage the properties on a short term let basis as is generally the norm with most overseas investments.
Maexpa will be offering a five per cent rental guarantee for the first 12 months after completion. Generally students attend the University of Porto for three to four years, thus the void period at the start of the tenancy will be borne out by Maexpa and upon transfer of the tenancy agreement after the guaranteed period of 12 months typically the tenants will extend their tenancy.
This opportunity offers a ‘hands free’ investment without the risk of over development, falling tenant demand, seasonal shifts in rent ability/value or the current crisis we are seeing in Southern Spain, which is due to over development and unrealistic valuations.
Forty per cent of the development has already been sold to local people and parents of overseas students. With regular flights from the UK to Portugal that take just two hours, and prices starting from as little as £73,000, the Porto Oriente development is a fantastic addition to a balanced portfolio, offering a low risk long term asset with a clear exit strategy and an obvious rental market.
Greg Clarke, Investment Consultant at Maexpa International, said, “In our opinion the Porto Oriente development offers a low risk investment opportunity for the first time investor.
“Traditional fundamentals are in place and tangible rents demonstrate projected yields with absolute clarity; add to this that Portugal is already an established investment region and Porto Oriente offers obvious strengths historically embraced in the UK residential market by experienced investors.
“To demonstrate our confidence in the rental market we are offering both a five per cent rental guarantee and free management for the first year, after which a typical student tenant will extend their stay for up to a further four years.
“Needless to say there is no shortage of potential tenants, indicated by our initiative to market the flats with tenants ‘in situ’ to UK investors, offering a genuine ‘turn-key’ opportunity and concrete yields supported by legally binding short hold tenancy agreements,†Mr Clarke added.
Notes to editors:
Maexpa International are the London based international sales arm of the Maexpa Group, an Iberian developer with interests in ten countries around the world covering Western and Central Europe, Africa and Central America. Last year alone they sold in excess of 5,000 units worldwide totalling some £226 million in revenue and demonstrating an exponential year on year growth since their inception in 1989.
TheMoveChannel.com is a property website that was founded in 1999 as an online resource for buying, selling and learning about property. It now receives as many as 300,000 visits per month and advertises over 50,000 properties in nearly 90 countries, which are listed by over 500 partner organisations.
