Lisbon is becoming a popular option for start-ups for a number of reasons. These include increased funding, refurbishment of existing co-working spaces and increased number of tech incubators. Another significant reason why Lisbon is booming is because the government is increasingly keen to support start-ups. This has led to new opportunities for start-up businesses. For example, the StartUP Voucher initiative. This allows over 400 entrepreneurs a years fellowship to grow their business. And the Web Summit Conference (previously hosted by Dublin) has now moved there.
Lisbon has become particularly appealing for start-ups. This is thanks to the large number of support and start-up incubators that have popped up. These include Start-up Lisbona, Inovisa and Labs Lisbona, to name a few. And investments such as the Hub Creativo Beato start-up campus aim to boost foreign investment for start-ups.
Why is Lisbon experiencing an increase in construction at the moment?
It is fair to say that Lisbon is currently going through something of a resurgence. With grants to transform old properties, to encouragement for foreign investment, popularity of residential property in the area has boomed. One such factor that may have encouraged this was a Portuguese Chamber seminar in November 2017 on the benefits of moving to Portugal. 700 guests turned up.
At the moment, Portugal is experiencing an economic upturn. The fastest rate of expansion since 2000, according to a recent report by the Financial Times. This has been largely thanks to the increased tax incentives and grants offered by the government.
Although economically, the city may be currently thriving. However, there are some disadvantages too. Due to rising demand of property, inevitably housing prices have risen. It can be argued that as a result, young people and first-time buyers are forced to look in other towns and cities. And resultantly, Lisbon is at risk of loosing vibrancy. Yet, it is the younger generation that are partly responsible for driving this growth. Nevertheless, youth unemployment remains high. Although Lisbon has embraced the advantages of foreign investment, it may need to begin looking closer to home to encourage employment of young people in the area.
Over recent years, there have been a number of factors that have encouraged more start ups within Lisbon. These include:
Despite all the positives, house prices have risen, forcing young people and first-time buyers to look at properties in other cities. And this is despite the city already suffering from high levels of unemployment. Although it is great that the city is seeing investment, it would appear that it needs to create affordable housing for young people. Or the city could be at risk of losing vibrancy and diversity.
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