Best Places to Buy Real Estate in Portugal

Portugal offers something for everyone, from stunning, pristine beaches in the south to Porto’s vibrant, historic city in the north. The country’s real estate market has grown exponentially, attracting expats, buyers seeking luxury real estate worldwide.

Whether you want to retire to this beautiful Mediterranean country or move with your family, you’ll be delighted by the high quality of living and affordability. We imagine one of the best-selling points is the sublime climate. With this said, you may want to know the best places to buy real estate in Portugal.

In this article, we’ll explore the best places to buy real estate in Portugal. These are just a few of the top locations to consider, and this list is not exhaustive.

Best Places to Buy Real Estate in Portugal: A 2025 Guide

The best places to buy real estate in Portugal vary based on individual preference, lifestyle, budget, and investment goals. Most foreign and local investors choose Lisbon, Porto, and the Silver Coast for its booming tourism. Others prefer the Algarve, Madeira, and Cascais for luxury living. But, when it comes to affordable real estate, Évora can be a popular choice. Here is a quick look at the best places to invest in 2025.

Lisbon – The Capital Investment Hub

While 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 in 2023 (€4,935 in Lisbon Metropolitan Area), there is nothing like living in the Portuguese capital. Buying Lisbon real estate outside the city center can offer more affordable prices.

Lisbon is one of the best places to buy real estate in Portugal due to the stable economy, growing startup ecosystem, and business climate. The capital has a wide selection of charming neighborhoods, and what is best for you will depend on your needs. For example, if you are moving to Lisbon with your family, you may want to find Lisbon neighborhoods that are more conveniently located close to international schools.

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

The advantages of purchasing real estate in Lisbon include:

• High-quality lifestyle, with excellent gastronomy (Lisbon was named the top culinary city in Europe in 2024), world-class museums, and art galleries galore
• Several excellent international schools – 30 in the Greater Lisbon Area out of the 51 total in the country
• High tourism provides an opportunity to secure a nice return on your purchase (yields stood at 5.2 percent in Lisbon City and 6.8 percent in the Lisbon Metropolitan Area in 2023, highlighting the profitability potential of a Lisbon real estate investment)
• There are plenty of things to do in Lisbon. A multitude of fabulous parks, miradouros (viewpoints), and close proximity to excellent beaches
• The real estate market continues to thrive, with Lisbon a popular destination attracting expats, tourists, and investors from across 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.

Porto – Charming City Life

Porto has become one of the best places to buy real estate in Portugal for foreigners due to its growing expat community, business climate, and booming tourism. Real estate stood at an average price per square meter of €4,883 in Porto City in 2023 (€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 populous regions that continues to attract locals and expats alike.

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

The advantages of buying property in Porto include:

• A Porto real estate investment is a smart move. Investors looking to buy to rent will find that Porto has become a top tourist destination – making it ideal for buying real estate – with rental yields standing at 5.9 percent in 2024 (Porto Metropolitan Area was 6.6 percent). As a city with a large student population, if you are looking to rent your real estate long-term, this is also an option.
• Porto is quite an affordable city, although real estate prices have been increasing in recent years – increasing by more than 84 percent over the past five years, to be exact. Despite this, real estate values still come at an affordable cost when compared to other major cities in Western Europe.
• Porto is a well-developed city with a lot of history and character. Many of its properties reflect this charm, offering unique architectural features and a sense of authenticity. Alongside this, you’ll find the city to be embracing modernity, with many tech and startups relocating to the city due to the great business opportunities.
• Another of the major Portuguese cities, Braga, is also close by, less than an hour’s drive north, as are historic cities such as Guimarães and the outrageously beautiful Peneda-Gerês National Park. 
• Also, heading 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 where you can get to the heart of Portuguese traditions. Both Aveiro and Coimbra, Portugal, real estate offer increasingly attractive opportunities for investors and lifestyle buyers alike. 
• 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.

Silver Coast – Beautiful Coastline

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

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

• Real estate prices and the general cost of living are typically lower than in major cities (Lisbon, Porto) and the more established tourist area of the Algarve.
• 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.
• 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 real estate agent in the Silver Coast.

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 – and more investors and expats than ever before are placing their money in and settling in this glorious part of Western Europe.

If you are wondering where is the best place to buy real estate in Portugal, there are plenty of places in the Algarve. Tavira in the Eastern Algarve or Sagres in the Western Algarve is much quieter than key areas in the Central Algarve, such as Portimão and Albufeira in the summer months.

The benefits of buying real estate here include:

• Rental yields were 5.6 percent in 2024. If you are looking for the best place to invest in Portugal, Porto the Algarve region will come high on the list.
• 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. 
• As a tourist destination, parts of the Algarve can get quite busy in the summer months. If you are looking to buy real estate in Portugal with the Atlantic Ocean on your doorstep.
• If you are looking for luxury real estate in Portugal, you won’t have to look far. The Algarve is full of high-end real estate with private pools and stunning views. For more information, check out our article on Portugal’s premium property.

Unsure whether to opt for Lisbon or the Algarve? Explore your options in our comparative guide: Lisbon vs Algarve.

Madeira – Tourism Hotspot

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

The main advantages for purchasing real estate in Madeira include:

• 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.
• 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.
• 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.

Cascais & Estoril – Luxury Coastal Living

One of Portugal’s most desirable locations for lifestyle buyers, Cascais, is a wonderful seaside fishing town 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:

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

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.

Évora – The Historic and Affordable Alternative

Evora 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, but still offers long-term value appreciation.

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

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

Top Tips for Buying Real Estate in Portugal

If looking for an investment opportunity, determine the rental yield and capital appreciation potential. Also, 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 for your family.

You will also find lovely villas in Portugal that could be a smart long-term investment, many of which come with ocean views. Define what you want to get out of the property.

You should set a clear budget that accounts for the property cost, taxes (like immovable property tax and property transfer tax), fees, and additional expenses. If needed, explore financing options like mortgages in Portugal. It will also be beneficial to get your NIF (tax identification number) at a local tax office, as this will be needed for the purchase.

Discover how much you can borrow with our Portugal Mortgage Calculator.

Goldcrest: How We Can Help You Secure Your Dream Home

Goldcrest is a buyer’s agent that is based in Lisbon and the Algarve. One step further than a real estate agent, 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, offering insightful expertise and strategic advice.

In Portugal, the best places to look for homes in the beginning are through checking out various real estate websites. However, there is no one platform with all the listings. A buyer’s agent will have access to properties that you will not find elsewhere, and they will be able to provide you with more options that fulfil your requirements.

While Portugal Golden Visa properties no longer qualify through the Golden Visa program (Portugal’s residency by investment program), real estate investments remain a lucrative venture.