Updated: June 12, 2024

 

alfama lisbon housesLiving in Portugal offers a number of advantages, and over the past few years, this Western European country has become one of the most sought-after countries for expats to call home. With over 300 days of sunshine a year, warm and welcoming locals, a laid-back lifestyle, a relatively low cost of living, and affordable Portugal house prices compared to other European countries, it’s easy to understand why life in Portugal is so attractive.

In addition to the country’s wealth of European history, vibrant culture, and attractive property prices, Portugal is also home to some of the most stunning beaches in the world. Nestled along the Atlantic Ocean, you will find the iconic Praia da Falésia in Albufeira, Algarve, which was 2024’s best beach in the world according to TripAdvisor’s Travelers’ Choice Awards, and many more coastal gems across the country.

In this guide for international property investors, we will explore house prices in Portugal, discover which Portuguese cities are the best to consider for property investment, and discuss Portuguese visa options for foreigners interested in buying properties in Portugal.

The Current State of the Portuguese Real Estate Market

portugal sagresWhether you are looking to invest in modern apartments in Lisbon or a holiday home on the coast in the Algarve region, you will discover a variety of incredible options available when buying a residential property in Portugal.

A recent housing market survey by the Confidencial Imobiliario shared insights about Portugal’s 2023 real estate market. The report revealed that despite the challenging housing conditions in the past, which saw a 20 percent decline in the number of real estate transactions, the market has steadied and recovered with a 2.5 percent increase in quarterly sales since the second quarter of 2023.

In addition to these positive indicators for the Portuguese real estate market, in the first quarter of 2024, the Portuguese National Statistics Institute (INE) revealed that the increase in average prices for properties in 20 of Portugal’s inter-municipal communities slowed down. This means that buying property in these areas of the country is currently more affordable per square meter.

Average house prices in Portugal

So, how much does buying property in Portugal cost? The table below provides an overview of the average house price per square meter in major Portuguese districts, according to Portugal’s National Statistics Institute.

Note that the property prices reflected in the table are asking price values, and the sales price can be considerably lower as sellers aim to sell by a set date. On the other side of the coin, properties can also be lower than this average price. Also, if you buy outside a city center or further from the coast, the property price generally falls considerably below the average price.

Also, bear in mind that investment in luxury properties will be considerably more expensive than the average price. It is also worth bearing in mind that buying property in Lisbon remains relatively affordable compared with other capital cities in Western Europe.

Portuguese District

Average Property Price in 2023 (€/m2)

Lisbon Metropolitan Area

€4,061

Porto Metropolitan Area

€3,291

Northern Portugal

€1,740

Central Portugal

€1,864

Alentejo

€2,685

Algarve

€3,897

Rental yields in Portugal

As many foreign buyers are buying property in Portugal as an investment, considering current rental yields in the country is as important as considering the average house price.

In 2023, rental yields in Lisbon stood at 5.2 in the city center and increased to 6.7 percent in the Lisbon Metropolitan Area. Setúbal and Barreiro are particularly attractive areas, with yields standing at 7.7 and 7.8 percent, respectively. Yields in Sintra stood at 6.3 percent, while in Cascais, yields stood at 5.6 percent, two popular locations for expat buyers.

In Porto, the second-largest city in the country, yields are 6 percent for the Metropolitan Area of Porto and 5.6 percent for Porto City, while the average yield in the Algarve is 5.6 percent.

Additional property purchase costs

When it comes to the financial aspects of buying property in Portugal, there are also additional property purchase fees that you should be aware of. Additional money matters you should include in your budget are:

  • Legal fees: A lawyer will cost you approximately €2000-€5000, depending on the type of property, the price, and the complexities of the purchase.
  • Land Registry Fee: There is a public fee for the Land Registry, amounting to €250.
  • Notary Fees: Notary fees will cost you around €1,200.
  • Mortgage: Factor in costs for a mortgage broker, including the application fee of €290 and the bank valuation fee of €280.

An Overview of House Prices by City in Portugal

Portugal features a variety of lifestyle benefits that make it an appealing destination for many expats. One of the most appealing aspects of moving to Portugal is the affordable cost of living and affordable real estate options.

If you can picture your next chapter of life enjoying a warm and inviting climate, stunning beaches gracing the shores of the Atlantic Ocean, and living in a country that is budget-friendly, then a move to Portugal is worth serious consideration.

Portugal also offers a great selection of international schools and tertiary education institutions for those seeking top-notch education, in addition to having an efficient national healthcare system. In the sections below, we will explore the house prices in a few of the best places to buy Portuguese property.

House prices in Lisbon

Lisbon-South-Bay-Real-EstateLisbon is Portugal’s vibrant capital city, and the central business district features the most sought-after neighborhoods for buying property in Lisbon. The city offers apartments, houses, and villas along its cobbled streets, as well as a great selection of shopping boutiques and vibrant nightlife in areas like Baixa, Bairro Alto, and Príncipe Real. 

Lisbon also offers family-friendly neighborhoods like Estrela, where you will find spacious parks and natural attractions. Other neighborhoods to consider include Parque das Naçōes, Avenidas Novas and Alvalade, and Belém and Campo de Ourique. In the table below, we explore the average price for houses in Lisbon’s neighborhoods per square meter.

Lisbon Neighborhood

Average Property Price in 2023 (€/m2)

Ajuda

€5,043

Alcântara

€6,324

Alvalade

€5,820

Areeiro

€5,187

Arroios

€5,885

Avenidas Novas

€7,126

Beato

€4,587

Belém

€6,548

Benfica

€4,473

Campo de Ourique

€6,367

Campolide

€6,657

Carnide

€4,469

Estrela

€7,231

Lumiar

€5,016

Marvila

€5,530

Misericórdia

€7,021

Olivais

€4,587

Parque das Nações

€7,728

Penha de França

€4,402

Santa Clara

€3,955

Santa Maria Maior

€6,700

Santo António

€8,117

São Domingos de Benfica

€5,667

São Vicente

€5,018

House prices in Cascais

real estate agents in cascaisLocated just a 30-minute drive from Lisbon, Cascais is a prime location for luxury living on Portugal’s stunning coastline. Renowned for its picturesque beaches, acclaimed dining establishments, and vibrant cultural offerings, the town has become a magnet for discerning residents and visitors alike.

Cascais is famous for its selection of world-class golf courses, beautiful marinas, and an atmosphere that effortlessly blends refined living with relaxation. Whether it’s basking in the sun on pristine shores or indulging in the finest amenities, buying property in Cascais, Portugal, offers an idyllic retreat for those seeking a sophisticated and laid-back lifestyle.

In the neighborhood of São Domingos de Rana, apartments and houses cost €3,709 per square meter, while areas like Alcabideche offer homes for €5,032 per square meter.

If you’re looking for pricier investments, consider the neighborhoods of Carcavelos e Parede, where properties start at €5,231 per square meter, or Cascais e Estoril, where you can find your dream home for €7,330 per square meter.

House prices in the Algarve

Real Estate Investment Algarve- What You Should KnowProspective foreign buyers considering buying property in Algarve, Portugal, will find so much in store in this stunning region nestled along the sun-kissed shores of southern Portugal. The Algarve offers irresistible azure coastlines, radiant beaches, and a magnetic charm that not only captivates tourists but also draws in a wave of expatriates and retirees yearning for a tranquil coastal lifestyle. 

Amidst the picturesque scenery, world-class golf retreats dot the landscape alongside quaint fishing parishes, creating the perfect atmosphere for idyllic living. 

In coveted areas like Faro, Albufeira, and Lagos, average property prices per square meter reflect the region’s desirability, with Lagos houses and villas priced from €4,476, Albufeira at €3,635, and Faro, the Algarve’s bustling capital, from €3,519. If your interest lies in more affordable options, Tavira homes are priced at €3,309 per square meter. 

House prices in Northern Portugal

In Northern Portugal, the real estate landscape is as diverse as the region itself. Porto, the second largest city and point of access to authentic Portuguese culture and history, is a sought-after destination where homes are priced at €4,296 per square meter.

However, for those seeking more affordable options without sacrificing charm, Vila do Conde is a hidden gem where you can find property bargains priced at €2,239 per square meter. Matosinhos, with its stunning coastal vistas and bustling city life, is the middle ground in the North of Portugal, where homes cost €3,547 per square meter, catering to those drawn to both tranquility and urban convenience.

Meanwhile, Vila Nova de Gaia, renowned for its port wine tradition and scenic beauty, offers property options at a value of €2,989 per square meter, blending history with modern comforts and where you can enjoy the very best views of Porto, on the other side of the Douro River. Whether one seeks bustling city life, coastal serenity, or a blend of both, Northern Portugal offers a diverse array of housing options to suit every taste and lifestyle.

House prices in Southwest Portugal

melides sand and beachThe housing market in Southwest Portugal varies significantly across different areas. Melides and Tróia, nestled within the Grândola municipality, offers homes priced from €5,830 per square meter, while Comporta, situated in the municipality of Alcácer do Sal, offers properties priced at €4,544 per square meter.

Both Comporta and Melides have seen growth in popularity thanks to their stunning coastal landscapes and unique architectural designs that blend seamlessly with the surrounding natural beauty. Comporta, often dubbed the “Hamptons of Europe,” has attracted attention from celebrities and the elite, adding to its allure as an exclusive destination.

Meanwhile, you will discover more affordable options in the Alentejo region, where the average property price starts from €2,685 per square meter. Known for its serene countryside dotted with vineyards and medieval villages, Alentejo offers a tranquil escape from city life, appealing to those seeking a more traditional Portuguese lifestyle amidst picturesque surroundings.

House prices on the Madeira and Azores Islands

madeira portugalProperty prices on the picturesque islands of Madeira and the Azores offer exciting investment opportunities for international buyers. On São Miguel Island, the largest of the Azores, properties start at €1,688 per square meter, this is the benchmark for potential figures in these autonomous regions.

Madeira, situated off the coast of northern Africa, stands out with its developed infrastructure, particularly in the cosmopolitan capital, Funchal. This makes it a sought-after destination for foreign buyers. Blessed with a delightful year-round climate, Madeira epitomizes island living at its finest.

Meanwhile, the Azores, located northwest of Madeira, captivate with their unique landscapes, vibrant culinary scene, and lush green hills. Despite their differences, both islands share a common thread of breathtaking beauty, hospitable locals, and an exceptional quality of life.

House prices on the Silver Coast

silver coast portugalNestled along Portugal’s enchanting Silver Coast, this region offers a blend of natural beauty and cultural richness. Stretching between Lisbon and Porto, it boasts rugged cliffs, golden beaches, and quaint fishing villages, inviting you to immerse yourself in authentic local life.

Aveiro, known for scenic canals navigated by vibrantly colored boats, presents properties starting at €2,943 per square meter, while Figueira da Foz in the Coimbra district offers seaside living at €1,931 per square meter.

Caldas da Rainha, a charming city in the Oeste region, showcases properties priced from €1,882 per square meter, blending historical charm with modern comfort. Further, areas like Nazaré and Óbidos enchant with their unique attractions, offering properties at €3,413 per square meter, making the Silver Coast a diverse and alluring destination for property investment.

Discover More in Our Ultimate Guide to Buying Property in Portugal

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How to Buy Property in Portugal as a Foreigner

Now that we’ve explored the pricing range of properties available for purchase in Portugal, we will give you a brief overview of the property buying process in this Western European gem and what it entails for foreign investors.

Can foreign investors buy property in Portugal?

Foreigners can buy property in Portugal. There are no restrictions to non-Portuguese citizens buying property in the country, and you will have the same rights as Portuguese citizens when it comes to buying and owning property. However, if you are looking to move to Portugal, you will need to obtain residency in the country.

Documents required for property purchase

In addition to obtaining a NIF number (Portugal Tax Identification Number), which you apply for at a local Portuguese tax office, you will need the following documents to buy property in Portugal.

  • Photo ID: A valid identification document that verifies your identity.
  • Contrato Promessa de Compra e Venda (CPCV): The buying contract or property deed that outlines the terms and conditions of the property purchase.
  • Energy Certificate: This document provides information about the energy efficiency of the property and must be presented to you by the seller.
  • Imposto de Selo: The stamp duty payment, which is a tax required by the Tax Authority for property transactions.
  • Caderneta Predial: The land registry certificate that contains information about the property, including its location, boundaries, and registered owner. The land registry certificate, issued in paper format, serves as evidence of the legal status of a property as of the date of issuance. The land registry certificate compiles and describes the current registrations applicable to that property.

The steps of the buying process

For both Portuguese citizens and foreign investors, the property-buying process takes place in the following five steps:

Step 1: Find the perfect property

Begin with an idea of where you would like to buy and the type of property that you would like to purchase. Set a budget and conduct thorough research online to get a basic understanding of the Portuguese real estate market. Factor details like location, amenities, proximity to essential services, and potential for rental income into your search. We recommend seeking the assistance of real estate professionals like Goldcrest, who understand the property market and can help you find your ideal property.

Step 2: Secure financing 

Assess your financial situation and explore your financing options. If you plan to take out a mortgage, research various Portuguese banks to find the best interest rates and terms that suit your needs. Ensure that you have a clear understanding of the associated property costs, including taxes, legal fees, and property registration expenses.

Step 3. Make an offer 

When you find a property that fits your criteria, it’s time to make an offer. If you work with a real estate professional, they can help you with this, enabling you to secure the property at the best possible price. Negotiation is a customary part of the process in Portugal, so be prepared to engage in back-and-forth discussions with the seller until both parties reach a mutual agreement.

Step 4: The Reservation Agreement and Promissory Contract (CPCV)

Once the offer is accepted, you will sign the Reservation Agreement and Promissory Contract (CPCV). This contract solidifies intent to purchase and typically requires you to pay a deposit, which is often around 10 percent of the property’s purchase price.

Step 5:  Sign the Escritura (Final Deed)

The final step in the property purchase process is signing the Escritura, also known as the Final Deed, in the presence of a Notary. This is the formal contract that transfers ownership of the property from the seller to the buyer.

Exploring Portuguese Visa Options for Expats

Obtaining a residence permit is a vital step for property investors who are non-EU citizens looking to move to Portugal to live in their brand-new residential property. The Portuguese government offers a number of visa options that enable foreigners to acquire residency in Portugal, including the Portugal Golden Visa Program and the Portugal Passive Income Visa, also known as the Portugal D7 Visa, the Portugal Digital Nomad Visa, and the Portugal D3 Visa for highly skilled workers. Learn more about these visa options and their requirements from Global Citizen Solutions, our migration and residency partner.

Goldcrest: How We Can Help You

Goldcrest is a buyer’s agent based in Lisbon, Porto, and the Algarve. Equipped with local knowledge, exclusive networks, and international experience, we provide expert, impartial advice on real estate investments and how to buy property in Portugal. From scouting out the perfect property to property acquisition and beyond, we have you covered throughout the process.

Frequently Asked Questions about Portugal House Prices

The average house price in Portugal is €1,619 per square meter.

The average house price in Portugal is currently €1,619 per square meter which converts to $1,758 in US dollars.

House prices in Portugal fluctuate as they do in every country’s real estate market. We recommend doing your research and working with real estate professionals, like a buyer’s agent, who can help you find your dream home at the best possible price.

To find property for sale in Portugal, start by defining your needs and budget. Make a list of requirements, considering location, size, and amenities. Establish a realistic budget and research neighborhoods that match your lifestyle. Look into factors like schools and future growth potential to make an informed decision. Remember to consider financing options as early as possible if you are looking to get a mortgage in Portugal.

In the fourth quarter of 2023, house prices in Portugal continued to increase. However, it is important to note that house prices in Portugal fluctuate as they do in every country’s real estate market. We recommend doing your research and working with real estate professionals, like a buyer’s agent, who can help you find your dream home at the best possible price.