Best Places to Buy Real Estate in Portugal: 2026 Investor’s Guide

Best Places to Buy Real Estate in Portugal

The best places to buy real estate in Portugal vary based on individual preference, lifestyle, budget, and investment goals.

According to Statistics Portugal (INE), median house prices increased by 19 percent in the second quarter of 2025, compared to the 15.6 percent the year prior.

Lisbon, Porto, and the Algarve remain a primary choice for investors seeking tourism income, booming returns, and high liquidity. Others prefer Cascais and Madeira for luxury living. But, when it comes to affordable real estate, Évora can be a popular choice.

Here is a quick look at the top hot places for real estate in Portugal for 2026.

Source: Confidencial Imobilario

1. Lisbon – The capital investment hub

Lisbon is one of the best places to buy real estate in Portugal due to the stable economy, growing startup ecosystem, and business climate. Property prices are higher in Lisbon than in other parts of Portugal, standing at an average price per square meter of €6,934 in Lisbon City (€4,935 in Lisbon Metropolitan Area). Buying Lisbon real estate outside the city center can offer more affordable prices.

According to early 2026 data, Beato is the Lisbon parish with the biggest price appreciation, mainly due to the “spillover” effect as buyers moving to Lisbon seek value outside the city’s central areas.

Some of the best neighborhoods in Lisbon to buy real estate in Lisbon are: Baixa and Chiado, Alfama, Graça, Estrela, and Príncipe Real.

A Marvila real estate investment in Lisbon could also be an excellent option if you are seeking an up-and-coming hub in the Portuguese capital. Remember, the best places to buy real estate in Portugal will depend on your personal needs. For tailored expert advice, consider working with a buyer’s agent like Goldcrest.

The advantages of purchasing real estate in Lisbon include:

• Lifestyle: High-quality lifestyle, with excellent gastronomy, world-class museums, and art galleries.
• Education: There are 36 international schools in Lisbon, offering top-quality education for large expat communities.
• Profitability: High tourism provides an opportunity to secure a nice return on your purchase (yields stand at 5.2 percent in Lisbon City and 6.8 percent in the Lisbon Metropolitan Area, highlighting the profitability potential of a Lisbon real estate investment).
• Recreation: There are plenty of things to do in Lisbon. A multitude of fabulous parks, miradouros (viewpoints), and close proximity to excellent beaches.
• Demand: The real estate market continues to thrive, with Lisbon a popular destination that attracts expats, tourists, and investors from around the world.

Want to live your best life in Portugal and enjoy the best skyline the city has to offer? Check out our guide: Top Areas to Find a City Penthouse in Portugal.

2. Porto – Charming city life

If you are looking for the best cities to buy property in Portugal, Porto is one of them. As the second largest city in the country, it offers a growing expat community, an excellent business climate, and booming tourism.

Real estate stood at an average price per square meter of €4,883 in Porto City (€3,937 in the Porto Metropolitan Area), and the average price for properties looks set to continue to rise in the future, as this is one of the most populated regions that continues to attract locals and expats alike.

The most popular Porto neighborhoods include: Foz do Douro, Campanhã, Ribeira, Cedofeita, and Vila Nova de Gaia.

The advantages of buying property in Porto include:

• Yields: A Porto real estate investment is a smart move for families with children and young professionals. Porto is a top tourist destination with rental yields of 5.9 percent in the city itself and 6.6 percent in the Porto Metropolitan Area. It is a good location for buying a house in Portugal for investors looking to rent their property to tourists. As a city with a large student population, if you are looking to rent your real estate long-term, this is also an option.
• Affordability: Porto offers more affordable property prices than Lisbon, although rates have increased by more than 48 percent from 2020 to 2025. Despite this, property values remain affordable when compared to other major cities in Western Europe.
• Proximity: Porto offers a strategic location, situated very close to other major Portuguese cities, such as Braga and Guimarães, as well as the beautiful Peneda-Gerês National Park.
• Culture: If you head south, you’ll find Coimbra and Aveiro, two charming cities in their own right. Aveiro and Coimbra are both university cities with a rich cultural scene, and are more affordable than Porto. Both Aveiro and Coimbra, Portugal, real estate offer increasingly attractive opportunities for investors and lifestyle buyers alike.
• Value: If you are looking for cheap houses for sale in Portugal, consider Central Portugal and Northern Portugal, two of the most affordable regions in the country.

If you can’t decide whether you should buy property in Porto or Lisbon, check our guide for more information.

3. The Algarve – Ideal for holiday homes

With its rugged coastline, stunning beaches, beautiful landscapes, and high quality of life, the Algarve has long been a firm favorite with retirees, digital nomads, and families.

The region enjoys more than 300 days of sunshine, making it an ideal location for Northern Europeans and North Americans seeking to escape harsh winters.

Within the Algarve region, there is a significant price difference between locations. For example, Alcoutim is the best place to buy property in Portugal, especially in the Algarve region, if you are on a tight budget. Here, the average asking price is €1,780 per square meter. However, more desirable locations have higher prices, such as Faro (€3,701), Lagos (€5,066), and Castro Marim (€5,263).

The benefits of buying real estate in the Algarve region include:

• Returns: Average rental yields are about 5.6 percent. If you are looking for the best place to invest in Portugal, the Algarve region offers a lucrative opportunity for short-term rentals during the peak summer season.
• Affordability: Places such as Monchique, for example, could provide the ultimate Portugal country house retreat. Further north still, you’ll come across Beja in the Alentejo region, which has the lowest population density in the country and where you’ll find very affordable real estate.
• Scenery: As a tourist destination, parts of the Algarve can get quite busy in the summer months. If you are looking for the best place to buy a house in Portugal, Praia Dona Ana in Lagos offers one of the most beautiful beaches in the world for your new dream home.
• Luxury: If you want luxury real estate in Portugal, the Algarve is full of high-end properties with private pools and stunning views. For more information, check out our article on Portugal’s premium property.

Not sure whether to choose Lisbon or the Algarve? Explore your options in our comparative guide: Lisbon vs Algarve.

4. Silver Coast – Beautiful coastline

The Silver Coast is one of the best places to live in Portugal or buy real estate. Towns such as Aveiro, Nazaré, and Peniche offer a high quality of life by the coast and are also more budget-friendly.

For example, the average asking price for a property in Nazaré is €2,956 per square meter, €2,642 in Peniche, and €3,153 in Aveiro. You can generally purchase a modern, detached villa with a pool on the Silver Coast for the same price as a small apartment in the central Algarve or Lisbon. For many expats and locals, the affordability makes the Silver Coast the best place to buy property in Portugal.

The advantages of purchasing real estate in the Silver Coast include:

• Affordability: The general cost of living is typically lower than in major cities (Lisbon, Porto) and the more established tourist area of the Algarve.
• Appreciation: The region is still considered “up-and-coming” compared to the fully developed Algarve, suggesting strong potential for capital appreciation as its popularity continues to grow.
• Leisure: The Silver Coast has some of Europe’s top-rated golf courses, such as Praia D’El Rey and West Cliffs, which attract luxury investors.
• Versatility: There is a growing demand for both short-term holiday rentals (especially in coastal towns like Nazaré and Peniche) and long-term rentals (driven by expats, digital nomads, and families), which can offer solid rental yields.

If you want to secure your ideal home, make sure to work with a buyer’s agent or a real estate agent in the Silver Coast.

5. Cascais & Estoril – Luxury coastal living

Cascais is one of the best locations to buy real estate in Portugal for lifestyle buyers. This wonderful seaside fishing town is just a 30-minute drive from Lisbon. Cascais real estate investment can provide strong rental yields and high capital appreciation.

The advantages of buying property in Cascais include:

• Lifestyle: Splendid views of the Atlantic Ocean, beautiful beaches that come alive in the summer months, and top restaurants.
• Prestige: Growing interest from luxury lifestyle buyers and celebrities (check our article on Cristiano Ronaldo’s Portugal house in Cascais for more information).
• Transit: You will have to rely mostly on buses to get around in Cascais, although Bolt and Uber are also affordable options.
• Natural beauty: For nature lovers, the Sintra-Cascais Natural Park is also on your doorstep.

However, if you are looking for luxury real estate, such as spacious family homes further away from the coast, then Estoril can be a great choice. You can find many historic villas and detached family houses near beautiful landscapes. However, Cascais and Estoril are among the most expensive areas for real estate in Portugal.

If the palaces and Sintra have caught your eye, you may be surprised that you can also find palaces available to buy. You can find out more in our article: Best Places to Find Palaces in Portugal.

6. Madeira – Tourism hotspot

Madeira is another one of the best places to buy real estate in Portugal for foreigners. Buyers come here for its warm climate and high demand for buying real estate, both for living and short-term rentals.

The main advantages of purchasing real estate in Madeira include:

• Security: The island offers a high quality of life, a relaxed pace, modern infrastructure, good healthcare, and a low crime rate. Portugal consistently ranks as one of the safest countries globally.
• Consistency: Madeira is a popular, award-winning tourist destination with a 12-month rental season, unlike many seasonal holiday spots. This supports strong year-round occupancy rates and rental yields for investors in holiday lets.
• Value: While prices are rising, property in Madeira can still be more competitively priced than in prime locations on the Portuguese mainland, like Lisbon or the Algarve, offering better value for money.

7. Évora – The historic and affordable alternative

Évora can be one of the best places to buy property in Portugal for expats because it is more affordable than major metropolitan areas like Lisbon and Porto. There is an increasing demand for short-term rentals in Évora as more tourists come to discover this historic city.

The advantages of owning properties in Évora and the surrounding Alentejo region include:

• Modernization: Growing interest in business investment outside popular tourist hotspots. The infrastructure has been improving, creating a unique architecture that attracts tourists and business experts.
• Tourism: There is a strong demand for short-term rentals, mainly in the summer.
• Education opportunities: Many students enroll at the University of Évora, creating a strong demand for both long-term and short-term rentals, as well as a stable income for property investors.

Top Tips for Buying Real Estate in Portugal

If you are interested in buying Portuguese property, you will need a Portuguese tax identification number (NIF) and a local bank account. Here are a couple of tips that can help with research and property transactions:

• Do a detailed property search. It’s important to consider the type of property you need, whether it’s a studio or if you’re looking for Portugal apartments for sale to accommodate your family.
• Define what you want to achieve with the property. Evaluate its rental yield and capital appreciation potential, depending on how you plan to use it. For example, if you plan to earn an income from renting out a property to tourists, you will also find lovely villas in Portugal with ocean views that could be a smart long-term investment.
• The asking price is not the same as the purchase price. When you find the right property, ask a reputable real estate agent or a buyer’s agent to provide you with a list of property prices based on current market conditions. A buyer’s agent can also negotiate the price on your behalf.
• Set a clear budget. Take into account property cost, taxes (like immovable property tax and property transfer tax), registration fees, and additional costs. Portuguese banks offer mortgages for those who need help financing their investment. Mortgages in Portugal are available to foreigners at a Loan-to-Value (LTV) ratio of 65 to 75 percent. This means that foreign buyers need a higher cash deposit than local investors. Discover how much you can borrow with our Portugal Mortgage Calculator.
• Never skip the due diligence. Consult with a legal representative before you sign the promissory contract (CPCV) or the final deed (Escritura) on the Portuguese property. Legal checks can help you avoid expensive pitfalls, like hidden debts, zoning restrictions, or pre-existing liens that can jeopardize your ownership and investment.

Goldcrest: How We Can Help You 

Goldcrest is a buyer’s agent that is based in Lisbon. We provide expert, impartial advice on real estate investments and how to buy property in Portugal. From scouting out the perfect property through to property acquisition, we have you covered throughout the process.

If you are looking to purchase property in Portugal, don’t hesitate to get in touch. Our team of skilled experts is available to solve all your real estate doubts, helping you with the property search and offering insightful expertise and strategic advice.

Why choose Goldcrest?

• Local knowledge: With offices located across Portugal, our presence nationwide allows us to assist you personally across the country.
• Independent service: As an independent buying agent, we do not represent any development or project. Our service is entirely tailored toward each individual client, providing you with everything you need to secure the perfect property at the best possible price. As an impartial advisor on the market, we work solely on behalf of our client and provide a service tailored to your needs and requirements.
• Streamlined process: Our real estate agents speak English and Portuguese, and our service is completely focused on providing you with a hassle-free buying experience, saving you time.
• Experienced team: Our expert real estate team has a vast local knowledge of the Portuguese property market. We have cutting-edge technology and metasearch tools at your disposal to provide full market coverage, ensuring the best investment choices and negotiated prices.
• Network of partners: We have a close network of partners, including lawyers, property management services, builders, architects, designers, and landscape gardeners, again saving you time and hassle by providing you with trusted experts in their field of work.