Updated: April 2, 2024


The Algarve. Known for its pristine beaches, unique land formations, and fabulous gastronomy. A firm favorite with retirees, families, and expats from all walks of life, if you have visited this fabulous region in Southern Portugal, you’re probably well aware of the many selling points the Algarve has to offer. With this said, there is a possibility to go one step further. In this article, Land for Sale Algarve, Portugal: Everything You Need to Know, we’ll provide you with everything you need to know if you are considering buying land to create your dream home in the region.

Introduction to the Algarve, Portugal

Why choose the Algarve?

The Algarve doesn’t really need an introduction. Whether it’s the incredible beaches, exquisite cuisine, or high quality of life, there’s much to admire about this part of Portugal, the southernmost region in the country.

From an excellent healthcare system to high-quality education, the Algarve is the perfect place to move to with family or to spend your golden years in retirement.

Algarve real estate market: An overview

algarve real estate 2As with much of Portugal, the Algarve real estate market has moved from strength the strength in recent years. You’ll find many different property types, whether you are looking for a modern apartment or a luxury villa. While it has long been a region highly sought after by the British, today expats from across the world have discovered the beauty of owning property here.

The average asking price for property in the Algarve stood at €3,897 per square meter in 2023.

The price of land is usually much lower, with prices in the interior parts of the Algarve going for as little as €100 – €300/m per square meter. If you are looking for cheap land for sale in Portugal, the more interior areas of the region are your best bet. Construction costs will typically cost between €2,000 to €2,500 per square meter.

It’s important to note that if you are looking to move into the property in the near future, buying land may not be the way to go. While timelines can vary considerably, depending on property type and unforeseen circumstances, expect the construction to take at least three years once the work on the approved project begins.


Benefits of Buying Land in the Algarve, Portugal

Ideal location

The Algarve offers an ideal location for purchasing land with the intention of construction. Throughout the region, there is an abundance of land plots available for sale. Undertaking a construction project in this area can significantly enhance the value of the land, and one of the primary advantages of choosing this route is the potential for appreciation, which may not be as prominent when opting for a new build.

From an economic standpoint, an approved project in the Algarve represents excellent value for money. When factoring in the construction expenses, it remains a cost-effective option compared to buying a pre-built property, subject, of course, to the scale and scope of the specific approved project.

Land for sale Algarve, Portugal: Potential for investment and development

If your intention is to undertake this project with the aim of selling it upon completion, it has the potential to be a profitable investment. However, it’s important to consider that the finished property may be a highly customized and personalized home. As a result, selling the property might take some time.

Favorable climate

The Algarve is, in many ways, the perfect place to live, and one of the clear reasons why is the stunning climate. The temperature rarely drops below 20 Degrees C (68 Degrees F), and the region boasts more than 300 days of sunshine per year.

High quality of life

Living in the Algarve offers a high quality of life with its stunning beaches, pleasant climate, and picturesque landscapes. The region offers a diverse range of leisure activities, world-class golf courses, delicious cuisine, and a welcoming community. Whether for retirement, vacation, or permanent residence, the Algarve promises an excellent quality of life, making investing in land and building your dream home an attractive idea.

Types of Land Available for Sale in Algarve, Portugal

If you are thinking about purchasing a plot of land for sale in the Algarve, you have various options available. You can opt for a plot to construct your dream home and reside there. Alternatively, you may consider buying land to develop a commercial property or a touristic property, which could prove to be a profitable investment in the long run. Moreover, there is an opportunity to embark on an agricultural project as the region boasts a favorable climate, ideal for cultivating local produce, including vineyards.

Land to build a house to live in

Land to build commercial or tourist property

Land to for agricultural projects

Regulations and Restrictions on Land Ownership in the Algarve, Portugal

Can I buy a land in the Algarve?

Yes, there are no restrictions on foreigners buying property in the Algarve. You will have the same rights to buy property as a local would. Bear in mind that if you are looking to live in Portugal, you will be required to have a valid Portuguese residency permit.

You can find out more in this article: How to Get Portuguese Residency.

Zoning and land use regulations

The Algarve enforces zoning and land use regulations to manage development and uphold urban planning. These rules dictate the permissible property types, activities, and land usage in various zones. Adherence to these regulations is crucial when contemplating any land development or acquisition.

Sustainability, development, and environmental considerations

Because of its coastal setting and natural splendor, environmental conservation is prioritized in the Algarve. Those interested in purchasing a plot of land should take into account potential environmental restrictions, particularly for properties close to protected areas, coastal zones, or sensitive ecosystems. It may be necessary to obtain a permit before initiating any development, making it advisable to consult with an expert in the field before making a purchase.

Take a look at our guide to buying property in the Algarve to kickstart your journey!

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Reselling Land in the Algarve, Portugal

The Algarve maintains a steady growth in value owing to its allure among tourists and the ever-growing attraction it holds for expats The combination of scarce land availability and economic stability bolsters positive market dynamics and the potential for value appreciation.

Market trends and potential for appreciation

As the Algarve region is incredibly popular with expats and tourists – and increasingly so – there is the potential to get a nice return on your investment. If you are buying a plot of land with the intention to build property and then rent it out, this can be very profitable in the long run. Rental yields range from 3.56 to 5.03 in the Algarve. It looks like this part of Southern Europe will continue to be a top investment hub in the future.

Factors affecting land resale value

The resale value of land in the region is influenced by various factors, with the most significant ones being its location and proximity to amenities and attractions. Additionally, zoning and land use regulations, market demand, development possibilities, accessibility to infrastructure, and environmental aspects also play a crucial role in determining the property’s desirability and overall value.

Legal considerations

It is highly recommended to work with an experienced lawyer when buying a plot of land in Portugal. They will be able to help you draw up the documents that you need to sign during the buying process, plus conduct due diligence on both the property and the seller.

Tax considerations

When buying property or land, you will need to ensure you are up to speed with your tax commitments. This includes Portugal property taxes that you will need to pay both at the time of purchase (IMT and Stamp Duty) and that you will need to pay on an annual basis (IMI).

How to Find Property in the Algarve

The most straightforward way to discover land for sale in the Algarve involves working with real estate professionals operating in the market. They will have a clear understanding of the market and will be able to offer valuable insights, including information on restricted zones for land purchase and precise price estimations to assist you in your search. 

Online real estate platforms  

When looking for a plot of land for sale in the Algarve, checking online real estate platforms can be a good starting point. Be aware that the market is fragmented, and I spread across different platforms, meaning that you will not find all the available listings in one place. For a more comprehensive search, it is recommended to engage buyer’s agents who often have access to exclusive and distinct properties that are not readily available in the broader market. 

Local real estate professionals  

Real estate professionals will be able to help you with the purchase, making the land-buying process easier. They will be able to assist you with narrowing down properties that meet your requirements and, as they speak both Portuguese and English, will be able to help you navigate the real estate market in Portugal, whether you are looking for Portugal luxury homes or a plot of land for sale.   

Should I work with a buyer’s agent or a real estate agent? 

In Portugal, real estate agents work on behalf of the seller and will get a higher commission for a higher sale. In contrast, a buyer’s agent works solely on behalf of the client, ensuring that they get the best deal possible. A buyer’s agent will be able to help you throughout the process, from scouting properties through to property acquisition.

Where to buy land in the Algarve?

algarve real estateThere are countless charming towns and cities covering the entire Algarve region and where you buy land will be up to your personal preferences.

  • Western Algarve: Sagres, the most westerly town in the region, is perfect for water sport enthusiasts and those looking for a quieter pace of life. Further east, Lagos is also an incredible destination, with unique landforms such as the Benagil Caves and Ponte de Piede headlands.
  • Central Algarve: Being close to Faro, the capital of the Algarve, situated in the center of the Algarve region, would be a great location for avid travelers, where the Faro Airport makes it easy to get around. The Golden Triangle, the heart of Portugeuse luxury, can also be found here, alongside lovely towns, such as Portimão, in between Lagos and Faro, with its endless Praia da Rocha beach. The bustling town of Albufeira can also be found here, with its mix of busy nightlife and charming old town.
  • Eastern Algarve: The most authentic part of the Algarve, the beautiful town of Tavira can be found here, with its unique blue and white façades, countless churches, and its Roman Bridge. You will find a more relaxed pace of life here, with fewer tourists and stunning nature, such as the Ria Formosa Natural Park.

You can find out more about specific locations in our article, Algarve Portugal Real Estate. It’s important to note that you’ll find land to be even more affordable the further you move away from the coast and hotspot areas. Areas such as Monchique and Aljezur could be excellent options for finding affordable plots of land. The entire Costa Vicentina, between Odeceixe and Burgau, is also an attractive option for landbuyers.

Choose carefully your location

Consider also amenities that you would like to be close to. For example, close proximity to golf courses, incredible restaurants, schools, hospitals, and so on. It is better to consider these factors before buying land rather than discovering at a later date that your land is not in the most convenient location.

As we’ve mentioned previously, the location can also greatly impact the resale value. Also, should you consider renting out your property in the future, being in a convenient location is key.

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: 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.

The following articles may also be of interest to you if you are looking to buy property in the Algarve:

You’ll also find many luxury property types in Portugal, and you can find more about these property types in our article: What are the Main Types of Luxury Property in Portugal? And, should you simply want more information on the property market in Portugal, you can consult the following articles.

Frequently Asked Questions about Land for Sale in Algarve, Portugal

The benefits of buying land in Algarve, Portugal, include beautiful landscapes, a favorable climate, potential for development, and tourism opportunities. This is one of the most incredible regions in southern Europe, and buying land here can make the perfect home or excellent investment opportunity. The Algarve could be the perfect place for you to build your dream home.

You will find that discovering the perfect place to buy land in the Algarve does not have to break the bank. Buying land is much more affordable than purchasing a new build. Construction costs will cost you but will typically cost between €2,000 to €2,500 per square meter. The price of land is usually much lower, with prices in the interior parts of the Algarve going for as little as €100 – €300 per square meter, whereas if you are planning on building a waterfront property, this will cost you more.

Yes, there are no restrictions on foreigners buying property in the Algarve. You will have the same rights to buy property as a local would. The Algarve is home to a range of stunning towns, cities, and landscapes, and you should be able to find the perfect place based on your requirements.

Some areas may have specific zoning regulations, due to environmental considerations, for example. It is best to speak with a real estate professional before you buy to ensure you can both buy the land and build on the land.

Consider the following before choosing the perfect place to buy land in the Algarve: Location, infrastructure, proximity to key services, potential for appreciation, and legal and tax advice.

Yes, building permits are needed when buying land in the Algarve.

Land may be suitable for both residential and commercial purposes but check local regulations.

Working with an experienced real estate lawyer will ensure that everything works well with the sale of the property, including checking the authenticity and legality of the land for sale.

In Portugal, numerous banks offer mortgages to foreigners. To ensure favorable terms, compare options and initiate the process early to secure financing for your land purchase.

Yes, when it comes to buying a house in Portugal, you will need to be aware of the taxes that you will need to pay both at the time of purchase (IMT and Stamp Duty) and that you will need to pay on an annual basis (IMI).

Yes, you can build a property on land in the Algarve, providing it is within land zoning and local building regulations.

Rental yields stood at 5.6 percent in the Algarve in 2023. It looks like the Algarve will continue to be a top investment hub in the future.

Yes, be aware of potential environmental considerations when buying land or property in the Algarve. It is important to speak with real estate professionals and have a good property lawyer to avoid any issues on this front.

The real estate market in Portugal lacks a single, comprehensive online platform for all listings. While websites offer an overview, opting for a buyer’s agent is smart. They have access to exclusive properties not publicly listed, expanding your choices and opportunities.

The first pointer is to ensure you commit to research. A basic search for “land for sale Algarve Portugal” can provide you with a good overview of the market. If you are looking for something more specific, you can also tweak your search, for example by searching for “land with ruins for sale Algarve”, “plots for sale Algarve”, or “cheap land for sale Portugal Algarve”. Following this, you can get in touch with a real estate professional, such as a buyer’s agent, to assist you with finding the perfect spot for you.

Yes, particularly away from the coast, you’ll find several locations to find rural land. Away from the coast, you will find prices to be very affordable.

You will find many property types in the Algarve. Property types range from modern apartments to quaint townhouses, mansions to beach houses. You will also find land, vineyards, and farms for sale in the Algarve region, alongside luxury properties. Whatever you are looking for, you will likely find the perfect place based on your requirements.