How much does real estate cost in Portugal?
Traditionally, foreigners are in demand for housing located in three regions of mainland Portugal, as well as on the island of Madeira, which is considered one of the most popular holiday destinations at any time of the year. Madeira’s distance from the mainland (an hour and a half by plane from Lisbon) is not such a significant circumstance as to affect the cost of real estate in Portugal now. Moreover, this applies not only to the so-called luxury housing – villas, estates and luxury apartments, but also to real estate for the middle class. At the beginning of 2019, the average cost of one square meter of residential property in Madeira was almost 1,250 euros.
In terms of this indicator, Madeira is second only to Lisbon – both in its northern and southern parts, where average prices have long exceeded 1,300 euros per square meter. This rise in prices is explained not only by the country’s recovery after the global financial and economic crisis ten years ago, but also by the opportunity to rent out your property. However, one should take into account the fact that the location of the object plays an important role – in particular, in some of the Lisbon suburbs, immigrants from countries such as Angola, Mozambique, Cape Verde and Brazil predominate, who can obtain a residence permit in Portugal, and then citizenship of this country in a facilitated manner. However, it is possible to buy housing in the Portuguese capital for less than 1,000 euros per square meter (the price range from 50 to 80 thousand euros for an apartment with one or two bedrooms is quite common), although in the vast majority of cases this will be apartments in old, or even dilapidated, houses – at best, buildings of the last century, in need of at least cosmetic repairs.
In the immediate vicinity of Lisbon (no more than half an hour by car or 45 minutes by train) is the most prestigious resort of the country – Cascais, where one of the many natural attractions of Portugal is located – Boca do Inferno (“Devil’s Mouth”), a cave that, when you enter it, the waves produce an incomparable sound and create a unique spectacle. The cost of real estate in Portugal in Cascais is at least 900 euros per square meter, but it should be borne in mind that the number of expensive villas in this quiet suburb is not much inferior to the average apartment, the demand for which is growing from year to year.
The cost of real estate in Portugal in Estoril, located a ten-minute drive from Lisbon, is somewhat cheaper, this is explained by the fact that the main entertainment venues are concentrated here, including the most famous casinos and discos in the country, which is unlikely to appeal to lovers of a relaxing holiday who Portugal is attractive.
Real estate prices in Portugal: not only the capital and surrounding areas
However, the Portuguese regions that potential residential property investors should pay attention to extend well beyond the Portuguese capital and its immediate surroundings. As a rule, most tourists from Russia, Ukraine and Belarus go on holiday to the Algarve province in the very south of the country. Unlike the rest of mainland Portugal, the “summer” season here lasts six months, starting in mid-April.
It is no coincidence that such resort towns as Albufeira or Vilamoura have been chosen as their permanent place of residence by British citizens, for whom the entire infrastructure has been created here, including their much-loved golf courses. You can learn more about real estate in the Algarve from our article.
The cost of real estate in Portugal, when it comes to the Algarve, varies from 60 thousand euros for a modest one-room apartment at a decent distance from the sea – for example, in Faro, to 300 thousand in the case of a villa in close proximity to the coast.
Finally, for those who are not strongly dependent on beach holidays and want to save on the cost of real estate in Portugal, it makes sense to pay attention to the north and northeast of the country, where the average price of one square meter of housing rarely exceeds 1000 euros, including the famous capital of port wine – city of Porto.
The same economical options in the region of 850-900 euros per square meter can be found in areas bordering Spain, but they are more suitable for investors who want to acquire their own “base” for opening and developing a business in Portugal – usually in the agricultural sector farms.