Updated: November 14, 2025

 

lagos portugal real estate

One of the real gems of the Algarve region, Lagos is not to be missed, its enduring appeal translating to a highly valuable property market and sought-after location to relocate to. With unique rock formations, long sandy beaches, and luxury properties, why not dive into the Lagos real estate market and take a permanent vacation amongst the sea and the sun?

This article will focus on Lagos, one of the most desirable parts of the Algarve.

We’ll cover:

Key Takeaways about Lagos, Portugal, Real Estate

  • Lagos is a prime investment hotspot, with a booming tourism and high international demand and offering capital appreciation and rental yield potential (rental yields of 5 to 8 percent).
  • Lagos has a high value property market, with average property prices of €5,066 per square meter.
  • The city is known for its laid-back lifestyle, strong expat community, mild climate, and watersports activities.
  • There are diverse buying options, with Lagos real estate options including oceanfront modern apartments, villas, and luxury properties.
  • The city is an excellent choice for all types of expats, including retirees, remote workers, and second home buyers.

An Introduction to Lagos Portugal Real Estate

As one of the most visited areas in the country, Lagos, in the Western Algarve region, has it all. From turquoise waters and top-quality beach resorts to incredible cuisine – including a mix of fine dining restaurants and family-owned restaurants – buying property in Lagos, Portugal, is the ultimate dream for many, offering a highly valued and appreciating property market.

The most populous areas in Lagos are by the coast, where locals are primarily involved in the tourism and services sectors. Further inland, you can bask in the peace and quiet of the region. Here, agriculture and forestry remain the main focus of work for the locals, although you will be able to find properties in very calm areas without the footfall of tourists.

Even in the main coastal areas, however, Lagos has not succumbed to mass tourism. The city retains its character and charm with cobbled streets and a welcoming atmosphere. With plenty of things to do and a sublime climate, you will always be kept busy. However, if you prefer to simply sit back in blissful relaxation, Lagos can certainly cater to this need, too.

How much does property cost in Lagos?

Lagos property prices range from €250,000 to over 1 million, with averages standing at €5,066 per square meter. Prices vary widely depending on property type and location.

A new build with two-beds can be found at starting prices of around €400,000 to €450,000, while high end villas can cost well over €1.5 million. An off-plan property will be less expensive.

Properties with ocean views, swimming pools, or close proximity to key services will be more expensive than properties further from the coast or in less in-demand areas.

The Allure of Lagos: How This Charming City is Taking Center Stage

Lagos has been steadily emerging as one of the most desirable locations to relocate to in the Algarve region, particularly among American buyers. The high quality of life, sublime weather, and stunning properties – many of which are new builds that come with ocean views – have firmly placed Lagos on the map for expats from all walks of life, including retirees, families, and investors.

As many seek a safe place to relocate to, Portugal – and Lagos in particular – ticks all the boxes. Alongside this, given the fact that Lagos is much more affordable than many cities in the US and Western Europe, you get a lot more for your money.

The popularity of investing in Algarve Portugal real estate, and in Lagos, specifically, looks set to continue to place the region as a top choice for foreign buyers in the coming years, with strong potential to capitalize on strong rental yields and capital appreciation. Americans, in particular, are drawn to the ocean-facing properties, and remote workers are increasingly moving to the city to live and work from one of the most beautiful coastal cities in Europe – Lagos is becoming a digital nomad favorite.

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

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What types of properties can you buy in Lagos?

You can find many different property types in the Algarve, and Lagos is no different. You will find beach houses, villas, and apartments for sale in Lagos, plus many more.

You will also find luxury Lagos homes for sale, where you can have your own private swimming pool, rooftop terrace, gym, and private security. Many celebrities have come to call the Algarve home – indeed, this taste of luxury with sweeping views of the Atlantic could well be one of the finest combinations out there.

Below are some common types of residential property in Lagos, Portugal.

Apartments

Apartments in Lagos range from modern, luxury units with ocean views to more traditional styles. Many apartments in Lagos come with amenities such as pools, gyms, and secure parking. They are popular for both permanent residences and vacation rentals due to their convenience and proximity to the city center and beaches. You will also find apartments located in a condo, where you have access to shared amenities, such as a swimming pool, gym, restaurant, and so on.

Villas

Villas are standalone homes, often with private gardens and pools. These properties vary in size and style, from contemporary designs to classic Portuguese architecture. They are ideal for families or those seeking more privacy and outdoor space.

Quintas

Quintas are traditional country houses, often set on larger plots of land. These properties are perfect for those looking for a rural lifestyle while not being too far from the amenities of Lagos. Most quintas will be located a little outside of Lagos itself. You will find many spectacular houses for sale in Lagos, Portugal.

Penthouse apartments

Penthouse apartments are luxurious units situated on the top floors of buildings, offering expansive views of the city or coastline. These properties are highly sought after for their exclusive feel, large terraces, and often high-end finishes and amenities.

Properties close to Lagos

You can also find stunning properties outside Lagos, such as property for sale in Alvor, to the west of the city, home to whitewashed properties and a distinct Portuguese ambiance, while further west, you have the charming city of Sagres.

How to Buy Property in Lagos as a Foreigner

1. Get a NIF number and open a bank account

To buy real estate in Lagos, Portugal, as a foreigner, you will need to have a tax number (Portugal NIF), which is required for any major financial purchases and to open a bank account. Non-EU nationals will need fiscal representation to get a NIF. We also recommend opening a Portuguese bank account to save on international transaction costs.

2. Determine your goals

Are you buying Lagos, Portugal, real estate for relocation, for investment, or as a vacation home? If you are moving to Portugal with your family, then you should also consider proximity to schools. Consider how far you are from key services, including hospitals, shops, and local restaurants.

If you want to relocate to Portugal, make sure to take into consideration Portugal’s residency visa options, with popular options being the D7 Visa (for retirees) and D8 Visa (for remote workers).

3. Evaluate if you need financing

You can get a mortgage in Portugal as a foreigner, with more than 15 banks offering loans. Speak with an experienced mortgage broker who will help you find the best deal for your specific situation. You can choose from fixed or variable mortgages, or a mixture of the two, known as mixed-rate mortgages. Non-residents can usually get a loan for 60-80 percent of the property price, although this will depend on the bank. In 2025, low interest rates place buyers at a distinct advantage.

4. Work with professionals to find your perfect property

If you are buying Lagos, Portugal real estate, discuss with a buyer’s agent or real estate agent in Lagos to uncover which up-and-coming parts of the city or which parts of the city are the best neighborhoods to live. If buying for investment, you can learn more about areas in the city that are likely to appreciate well over time or that will give you high occupancy rates.

Real estate professionals can help you find your ideal property in Lagos. Working with a real estate agency or, preferably, a buyer’s agent (buyer’s agents protect the needs of the buyer; real estate agents work for the seller), you can find properties that match your requirements, narrowing them down until you are ready to make an offer.

You should also work with an experienced real estate lawyer in the Algarve to assist with contract checks, due diligence, and to make sure you don’t run into legal issues further down the line. They will make sure you have the correct property documents to complete the purchase and check with the PDM (Plano Director Municipal) about any zoning issues that could hinder land use.

5. Negotiation

Once you’ve identified the property that you’d like to purchase, you can make a calculated offer. A buyer’s agent will be able to advise you here, helping you secure the property at the best possible price.

6. Reservation and Promissory Contract

Once your offer is accepted by the seller, you can sign a Reservation Agreement and Promissory Contract (CPCV, Contrato de Promessa de Compra e Venda) and pay a deposit, usually around 10-30 percent of the price. It is recommended to sign the Promissory Contract in front of a Notary. 

7. Final Deed Signing

The final step of the buying process is to sign the Final Deed (Escritura) in front of a Notary. This is when the remaining amount is paid to the seller, alongside property purchase taxes (IMT and Stamp Duty). The Notary fees are around €500-1,000.

8. Land Registry and annual taxes

The transaction needs to be registered in the public property registration, stating that you are the new owner of the property. The land registry fee is around €250. After purchase, you will need to factor in annual fees, such as IMI and condominium fees (if applicable).

Practical Information about Lagos

Lagos is sandwiched between the central Algarve, where you have the “Golden Triangle” of luxury properties, and Sagres, where you can experience the rugged beauty of nature. Perfectly positioned between the two, Lagos offers excellence – whether it’s the unique landscapes and incredible cuisine, or if you simply want to wake up with a morning coffee and watch the glimmering ocean from your beach house.

Here, we’ll provide you with some practical information on Lagos. We’ll delve into the perks of the region, the lifestyle, and insider tips and tricks.

Lifestyle in Lagos

Investing in real estate in Lagos guarantees an array of advantages. Firstly, it is extremely easy to stay active in Lagos. With more than 300 days of sunshine per year and beautiful landscapes, just heading out your door and going for a walk is a pleasure. You will be able to meet fellow expats at a range of activities. This ranges from golf to yoga, watersports to cooking classes – indeed, the list of things to do goes on and on.

Watersports in Lagos are very popular. With yachts to head out onto the sea, very good surf spot locations, and where you can weave in and out of the unique cave and rock formations in a kayak, for watersports enthusiasts, there is no greater place than Lagos. For keen golfers, you will be pleased to know that there are several top golf spots.

Lagos offers many tourist attractions, such as boat tours, beautiful beaches, and many top restaurants. Nonetheless, the city is not as busy as the popular resorts of the central Algarve, such as Albufeira or Portimão.

Lagos also has very good seafood and fish specialties. Living in the area, you will quickly become well-accustomed to brilliant produce. From the sweet Algarve oranges to the crisp white wines, the food and wine in the region are incredible. You also have many exceptional fine dining restaurants where you can enjoy sublime food with perfect views of the ocean.

Climate in Lagos

Lagos experiences very warm summers and mild winters. It is common to have 12 hours of sun in the summer months and temperatures of 37 Degrees C (98 Degrees F). The temperature rarely drops below 6 Degrees C (44 Degrees F ) in winter.

Beaches in Lagos

In the Algarve region, the Western Algarve is home to some of the most stunning beaches, and one of the main reasons why tourists flock to Lagos and foreigners buy property. There is the 4km long Meia Praia, the gorgeous Praia de Porto Mós, and the picturesque Praia de Dona Ana. Also, you have Praia do Camilo, situated among truncated cliffs, where you have to walk down 200 steps to be blessed with the beautiful beach below.

However, it’s not just about the renowned beaches in Lagos. You also have beautiful landscapes, such as the iconic Ponte de Piede Cliffs and the Bengali Caves.

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.

Frequently Asked Questions about Lagos Portugal Real Estate:

Yes, as a popular tourist destination, Lagos is a good investment hub with a high potential for strong returns. Rental yields range from 5-8 percent, with averages in the Algarve standing at 5.6 percent. If you are looking for rental investment properties, you should get a nice return on your investment.

Yes, Lagos is considered a good place for retirees that enjoy coastal living and an active lifestyle. The city and surrounding area offer a relaxed pace, vibrant expat community, excellent healthcare, and low living costs compared with the USA and similar coastal regions in Western Europe.

Yes, it is relatively straightforward for foreigners to purchase property in Portugal. We recommend working with an experienced professional when house hunting in Lagos. Note that if you are looking to live permanently in Portugal, you may need a visa to stay in the country. See our article on securing residency in Portugal for more information.

Yes, Lagos, in the Western Algarve, is an excellent place to live. Lagos has some of the Algarve’s most beautiful beaches, a fascinating history, a vibrant café and nightlife culture, and an abundance of scenic natural areas. Whatever your interests, you’ll never be short on things to do. The best attractions and activities are easily accessible and reasonably priced in Lagos. 

In all the Algarve region, you should find the cost of living to be quite affordable compared to other seaside areas in other Western European countries. Obviously, if you have your own swimming pool or private gym, this will increase the costs.

The real estate market in Lagos in the Western Algarve, as with many places and Portugal, has moved from strength to strength. A quick search for “houses for sale Lagos Portugal” will give you an overview of the market. While property prices in Lagos are on the higher end of the spectrum, averaging at €5,066 if you are considering renting out property, you’ll find rental yields to be quite high (5-8 percent). Given the popularity of Lagos with expats, you will also find commercial properties to be an excellent investment.

The average asking price for a property is €5,066 per square meter. Real estate prices in Lagos, Portugal vary based on location and property type, with coastal properties generally higher.

Foreigners can buy property in Lagos, Portugal without restrictions, enjoying the same rights as local buyers.

The Lagos real estate market offers a diverse range of properties, including apartments, villas, waterfront properties, and commercial properties. You’ll also find many luxury properties with a private swimming pool, gyms, and security in Lagos and the Western Algarve.

Yes, you can rent out your property in Portugal. If you are considering renting it out in the short term, you will need to secure an Alojamento Local License (AL License). Bear in mind that there are currently restrictions on getting a license for short-term rentals, although the new government looks set to revoke some of these restrictions.

If you are considering buying to let, you can find out more in our article: Buy-to-Let: An Overview.

Yes, investing in real estate in Lagos, Portugal, is considered favorable due to its attractive tourism sector, which continues to grow. Compared to other seaside areas in Western Europe, you will also find the average price of properties to be quite reasonable.

To buy property in Lagos, Portugal, you need to get a NIF (tax number) and open a bank account in Portugal. Following this, you’ll need to find a property, make an offer, make sure you commit to thorough due diligence with a real estate lawyer (advogado), and then proceed with the Promissory Contract (CPCV), before signing the Final Deed of Purchase (Escritura).