Barbara Queiróz Updated: February 10, 2026
Don’t want to spend years building your home from scratch? That’s where prefab homes in Portugal can help. These prefabricated housing solutions take several months to construct. In some cases, they can also be more affordable than traditional homes.
Whether you’re looking for a main home, a vacation rental, or an investment opportunity, prefabricated houses in Portugal are here as an alternative to standard building methods.
In this article, we’ll cover the average property prices for prefab homes, types, and the advantages of owning these properties. We also listed the best investment locations for different budgets.
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Key Takeaways about Prefab Homes Portugal
- The average cost for a prefab house in Portugal depends on the model. Basic models cost about €800 to €1,500 /m2, mid-range builds vary from €1,500 to €2,500 /m2, while a luxury prefab home can exceed €2,500 /m2.
- Before you can buy a pre-fabricated home, you must have your own land, which is approved for residential construction.
- As a foreigner, you can purchase a prefab home without restrictions in Portugal, as long as you have a Portuguese NIF number and preferably a local bank account.
- Most prefab homes take three to six months to build from start to finish. But, the time it takes varies based on the size of the property and the features you plan to customize.
What are prefab homes in Portugal?
Prefab Homes in Portugal (also known as casas pré-fabricadas or casas modulares) are houses that use prefabricated construction methods. Because most of the work happens in the factory, prefab houses are faster, precise, and more efficient to build.
When it is ready, builders transport the home and assemble it on your land. They connect the utilities on-site, making the process more efficient than a traditional house. In other words, prefabricated houses in Portugal are fully customized properties that are ready for you to move in.
Why are pre-fabricated homes so popular in Portugal?
Living in pre-fabricated homes in Portugal is attractive to many expats due to their affordability, efficiency, accessibility, and safety. Prefab homes are also one of the best ways to obtain cheap houses for sale in Portugal.
Services that support modular construction projects were estimated to go up by 221 percent in 2025, according to Portugal News. This growth was particularly high compared to the 117 percent recorded in 2024.
Some of the main advantages of prefab houses include:
- Competitive pricing: Prefabricated and modular homes are more budget-friendly than traditional construction because you can spend less on labor and material costs.
- Energy efficiency: Many modular homes in Portugal can include sustainable materials, solar panels, and energy-efficient windows. This reduces the home’s overall carbon footprint compared to traditional construction methods.
- Quality control: Factories can ensure high-quality building, and building a home in a controlled environment reduces weather delays.
- Precision manufacturing: Modular construction is time-efficient, so modular houses are generally much quicker to assemble than traditional houses.
- Less maintenance: A prefab or modular house often requires less maintenance, given the smaller space and durable materials.
Are prefab homes in Portugal eco-friendly and energy efficient?
Many pre-fabricated homes in Portugal can be greener, cheaper to run, and more energy efficient.
That’s because they often use:
- Smarter construction systems, such as factory-built panels, modular walls, and precision-engineered frames.
- Better insulation materials, mainly thermal insulation, double or triple-glazed windows.
- Renewable energy options, such as solar water heaters and solar panels.
- Lower environmental impact, from sustainably sourced wood, low-VOC paints, and minimal on-site construction waste.
Note: An Energy certificate (SCE) can show you exactly how energy-efficient the house is. The grades vary from F (inefficient) to A+ (very efficient).
If you want to learn more about eco-homes, check our guide to sustainable housing in Portugal.
How much does a prefab house cost in Portugal?
The average prices for prefab homes in Portugal vary based on the model, size, and extra features. For example, an affordable 150 m², three or four-bedroom house costs about €155,800 to €193,930.
A mid-range modular home cost in Portugal, like a two-story 212 m² house with two bedrooms and two bathrooms, comes at €252,600 to €313,600 or more, including VAT (Value Added Tax).
Larger family homes, such as a 228 m² house with four bedrooms, can cost over €426,300, plus VAT. On that note, basic and second-hand models cost as low as €40,000 to €50,000, giving you access to Portugal properties under 50K.
These prices, however, don’t include land or utility costs. Therefore, the final cost depends on the land for sale in Portugal and the customization features.
The table below outlines the average costs for prefab homes in Portugal per square meter:
Property type | Average cost (per m²) |
Basic model | €800 to €1,500 |
Mid-range model | €1,500 to €2,500 |
Custom build or luxury model | €2,500+ |
Which types of prefab homes can you buy in Portugal?
Models of prefab houses and modular homes in Portugal range in architectural style, though most tend to have a modern look, especially as tiny home trends gain traction worldwide.
Many prefab houses also feature minimalist designs, with various layouts and aesthetic styles, providing buyers with a fair selection of properties to suit their preferences.
The main types of prefab houses in Portugal include:
- Modular homes: Built from prefabricated modules off-site and transported to the site for assembly
- Container homes: Shipping-style containers are used as the foundation of the home
- Light Steel Frame (LSF) construction: Where steel frames are used instead of wood
- Concrete prefab homes: Built with prefabricated concrete panels
You can also find single or double-story luxury models, micro homes, lodges, cabins, bungalows, mobile homes, and even modular, small villas with a pool in Portugal.
You will find a wide range of luxury property types, including luxury homes with a helipad in Portugal and beach houses that come with glorious ocean views. To find the right property and location for you, we recommend speaking with local professionals who can guide you to your dream home.
What should you know before buying a modular home?
Here are some considerations that you should take into account if you are considering opting for a prefabricated home in Portugal.
Selecting land
Before buying a prefab house, your first step is to buy land in Portugal. If possible, it’s recommended to have the manufacturer assess the site to evaluate conditions like terrain, sun and wind exposure, and access, which can affect preparation costs not included in the modular home’s base price.
You will also need to adhere to consult the Municipal Master Plan (PDM), as they are the body responsible for qualifying the land, for example, whether it is urban or rural, etc.).
Legal restrictions may also apply, especially in environmentally protected areas. This is why working with a Portugal real estate lawyer is highly recommended to navigate the legal processes.
Building the prefab home
While the building of prefabricated houses is generally a more affordable option, a modular home in Portugal will need a construction license, which will add to the costs, alongside the land acquisition and building costs associated with the prefab construction.
Also, securing financing for a modular home can be slightly trickier, as there are usually higher interest rates and shorter repayment terms compared to conventional buildings.
Licensing and regulations
To ensure the correct licensing of your prefab house, Portugal has regulations and a process to follow. Here are the steps to go about getting your prefabricated house in Portugal properly licensed:
- Step 1: You will need to ensure that you have property licensing before you go ahead with the construction. This involves requesting prior information from the municipal council (Câmara Municipal) about where the house will be built to guarantee the project can go ahead. You will need to present architectural plans to the city council of the municipality where the house will be constructed before any assembly or building work begins.
- Step 2: Once approved, the technical projects will need to be presented, such as sewage, electrical supply, and gas installation, so that the city council can consult the entities responsible before issuing a building permit.
- Step 3: Once the building permit is issued, the building work can be carried out. A contractor will need to be responsible for the work and the site book.
- Step 4: When the construction is finished, a use license must be requested from the city council’s urban planning services. This will be issued after it has been confirmed that the work complies with the approved projects. This will be done through an inspection of the property.
Taxes
In order to own a prefab house or any property, Portugal requires certain taxes to be paid. You will need to consider the taxes to pay for prefabricated and modular homes, which will fall either at the time of purchase or on an annual basis.
For example, prefab houses will attract Municipal Property Tax (IMI), which is applied based on the taxable value of your prefabricated property. You’ll also pay Property Transfer Tax (IMT), which is levied on the purchase of real estate, as well as stamp duty.
For more information, check our article on property taxes in Portugal.
Maintenance
Prefab homes in Portugal are generally easy to maintain, but regular upkeep is still important. You should check seals and joints for wear, inspect the roof for leaks or damage, and ensure ventilation and insulation are in good shape to prevent mold and improve energy efficiency.
It’s also wise to monitor the foundation for cracks and keep the exterior clean and repainted when needed. Plumbing and electrical systems should be inspected occasionally to ensure everything runs smoothly.
Best Locations to Set Up Prefab Houses in Portugal
Some of the key locations where expats choose to buy in Portugal are:
- Lisbon
- Porto
- Cascais
- Algarve
- Silver Coast
Each location will offer buyers something different.
For example, if you look for Lisbon real estate, living here will provide you with a cosmopolitan living experience where there is always something to get involved in.
Porto, the historic second biggest city in Portugal, offers a more relaxed pace of life, with some of the best food in the country, while the Algarve and the Silver Coast are top locations for those who are looking to live close to the sea, enjoying sandy beaches and sweeping views of the Atlantic.
If you are looking to live in the countryside, you will find country houses for sale in Portugal, highlighting the diverse range of real estate available in the country.
If you are looking to discover a lovely property in Portugal with a private pool, you may want to take a look at our article on cheap houses with a pool in Portugal.
Read our guide to Portugal real estate by local experts
How to Buy Prefab Houses in Portugal
You don’t have to be a resident to buy property in Portugal. There are no restrictions or limitations on the number of properties you can purchase.
Here is a step-by-step guide for purchasing prefab eco-homes in Portugal:
- Get your finances in order. Figure out how much you want to spend and the model you prefer, such as a single- or two-story house with one or more bedrooms.
- Buy a plot of land. Check the zoning plans and apply for a building permit from the Câmara Municipal (municipal council).
- Find your property. Choose a layout and materials. For example, a luxurious flat roof prefab house in Portugal can have solar panels, large floor plans, and designer kitchens.
- Make your offer and negotiate. Consult with a buyer’s agent to negotiate prices on your behalf.
- Sign the contract and pay. Issue a small deposit and sign a turnkey contract (Contrato de Compra e Venda).
Best Companies for Mobile Homes Portugal
For the best companies making prefabricated houses, Portugal has quite a few options. Many of these companies offer modern architecture and luxury features, making them the go-to prefab home builders in the country and worldwide.
The companies include:
- BAUHU
- Casas Cube
- Smart Houses Portugal
- Lemcor
- Kitur
- Jular
- Senmar
- MIMA Housing
- Global Reality
- Made in Guincho
Working with a Buyer's Agent to Buy Property in Portugal
If you’re ready to buy a home or land in Portugal, a buyer’s agent can prove to be a worthy asset during the entire process. While real estate agents work for the seller and will receive a higher commission for a higher sale, a buyer’s agent works solely on behalf of the buyer, providing access to listings that you will not find elsewhere, ensuring the negotiation stages run smoothly, and assisting you throughout the buying process.
Why work with Goldcrest?
Goldcrest is a local buyer’s agent based in Lisbon, Porto, and the Algarve that provides insightful real estate expertise and strategic advice.
If you want to relocate to Portugal and purchase property, then our team can research the best investment opportunities in the country’s finest locations. Our team provides access to off-market properties, negotiates prices, and connects you with local experts, such as tax advisors, contractors, builders, and real estate lawyers.
If you choose to put your prefab home up for rent, then our team can provide long-term rental management and keep your investment in perfect shape.
Contact us today and let us streamline the entire purchasing process from start to finish.
Frequently Asked Questions about Prefab Homes Portugal
Are prefab houses in Portugal any good?
If you want to spend less time building a home and live off the grid, then prefab houses in Portugal can be an excellent investment. Not only do you spend less on on-site labor and material costs, but you also get to customize your own model.
How much do prefab homes in Portugal cost?
The cost of prefab and modular houses in Portugal can vary widely depending on size, design, and materials. In most cases, basic models start at €800 to €1,500 /m2, mid-range options vary from €1,500 to €2,500 /m2, while luxury prefab homes cost over €2,500 /m2.
Are prefab homes in Portugal customizable?
Yes, prefab houses in Portugal are often customizable. Buyers can typically choose from various floor plans, layouts, finishes, and additional features to tailor the home to their preferences and needs. This flexibility allows for a degree of personalization while still benefiting from the efficiency of prefab construction.
Is it possible to make a prefabricated house with land in Portugal?
Yes, with the correct licensing and approval from the relevant city council, you can have a prefabricated house in Portugal.
Do prefabricated houses comply with Portuguese regulations?
Prefabricated houses in Portugal require proper licensing and approval from the city council in the area in which you plan to live in your prefab house. The house must comply with the municipality’s regulations to be approved.
What financing options are there?
As with purchasing any property in Portugal, you have the option to consult a credit intermediary or mortgage broker to secure financing for a prefabricated house in Portugal. However, bear in mind that you may face higher interest rates and shorter repayment terms than with conventional buildings.
Is it cheaper to buy a prefab home or build a home?
Yes, buying a prefab home is generally cheaper than building a traditional home from the ground up. Prefab homes are built in factories, which helps reduce labor and material costs. They also take less time to construct, saving you money on everything from permits to temporary housing.
