Real estate investment in Portugal
If you are looking for a real estate investment in Portugal, the possibilities that this marvelous country offers you are innumerable. Renowned for the kindness and hospitality of its people, Portugal has many advantages for those who want to buy a property there. The diversity of its landscapes, a preserved coastline, cities equipped with the most modern facilities but which have managed to preserve their authenticity, here is a cocktail of the most delightful for any potential buyer. A unique way of life in the middle of magnificent landscapes, in the city as well as in the countryside, and of course by the sea. All this, Portugal is ready to offer you at exceptional conditions.
Before going any further, it is important to note, whether you speak Portuguese or not, that it is not advisable to invest in real estate in Portugal alone. The laws, the contracts, the verifications with the town hall, the contacts or the negotiations are not the same as those you know elsewhere in Europe or outside. It is therefore strongly recommended to go through a English-speaking intermediary who knows all the ins and outs of Portuguese real estate and will be able to offer you properties in line with your project, whether in terms of price, location, work, possibility of evolution or others.
If you wish to be accompanied by a English-speaking real estate professional, you can use the button below and fill in the associated form. A English-speaking expert based in Portugal will get back to you within a few days to learn more about your project and the best way to accompany you.
Investing in Portuguese real estate: advantages and market
In just a few hours by plane, you will have a change of scenery. Portugal is an increasingly popular destination because it is an easily accessible country. It is also a very reassuring environment, safety being an element that counts more and more nowadays. With a rich cultural heritage, a renowned gastronomy, stunning landscapes and 300 days of sunshine per year, it is not surprising to see the number of tourists visiting Portugal increase every year.
Paradoxically, the context has made real estate investment in Portugal even more interesting. Indeed, the country has a large real estate stock and prices have dropped. The differences compared to what can be found in big Europe cities are usually 40% to 50% for equivalent services. The main regions are Lisbon and Porto, and the Algarve. Everywhere you will find quality properties of international standards, both for purchase and for rent.
Real estate prices in Portugal in March 2021: purchase
Below you will find the average price of properties for sale in Portugal and which was updated in March 2021. This will give you a very accurate idea of the average prices per square meter in the different areas of the country. Please note that these prices are an average and that in large cities such as Lisbon and Porto there is a very large difference in price between luxury real estate and the overall real estate of the city. It should also be noted that these figures are taken from all the properties for sale and rent on one of the largest real estate sites in Portugal.
Overall, we can observe a rise in prices throughout the country between March 2020 and March 2021, but with prices in 2021 remaining extremely accessible and still allowing you to find very good deals if you wish to make a property investment in Portugal this year. We can still note a drop in prices in cities such as Lisbon, Evora, Porto, Setubal or Portalegre.
Real estate prices in the Lisbon area
- Lisbon: average sales price in March 2021 562.598€ vs 569.598€ in March 2020 (-1,2%)
- Setubal: average sales price in March 2021 314.462€ vs 315.705€ in March 2020 (-0,4%)
- Evora: average sales price in March 2021 206.323€ vs 212.799€ in March 2020 (-3%)
- Leiria: average sales price in March 2021 228.644€ vs 221.213€ in March 2020 (+3,4%)
- Santarem: average sales price in March 2021 161.944€ vs 152.836€ in March 2020 (+6%)
- Beja: average sales price in March 2021 139.562€ vs 126.830€ in March 2020 (+10%)
- Portalegre: average sales price in March 2021 119.320€ vs 136.938€ in March 2020 (-12,9%)
Real estate prices in the Algarve
- Faro: average selling price in March 2021 460.917€ vs 450.651€ in March 2020 (+2,3%)
Real estate prices for sale in the Porto region
- Porto: average sale price in March 2021 281.618€ vs 292.086€ in March 2020 (-3,6%)
- Vila Real: average sales price in March 2021 174.955€ vs 170.412€ in March 2020 (+2,7%)
- Braga: average sales price in March 2021 233.836€ vs 223.114€ in March 2020 (+4,8%)
- Coimbra: average sales price in March 2021 192,728€ vs 188,666€ in March 2020 (+2.2%)
- Viseu: average sales price in March 2021 170.550€ vs 162.830€ in March 2020 (+4,7%)
- Aveiro: average sales price in March 2021 231,489€ vs 215,224€ in March 2020 (+7.6%)
- Viana do Castelo: average sales price in March 2021 222,859€ vs 215,211€ in March 2020 (+3.6%)
Real estate prices to buy in Madeira and in the East
- Bragança: average sales price in March 2021 217,365€ vs. 219,980€ in March 2020 (-1.2%)
- Castelo Branco: average sales price in March 2021 124.633€ vs 119.360€ in March 2020 (+4,4%)
- Guarda: average sales price in March 2021 €118,263 vs €126,354 in March 2020 (-6.4%)
- R.A da Madeira: average sales price in March 2021 336.955€ vs 332.361€ in March 2020 (+1,4%)
Real estate prices in Portugal in March 2021: rental
The Covid-19 crisis in Portugal has had a much greater impact on the price of real estate rentals than on the Portuguese real estate purchase market. As you can see below, there are much larger downward variations in rental prices between March 2020 and March 2021. These figures, which are still an average, will give you an idea of the prices you can expect if you want to make a rental investment in Portugal in 2021.
We will note very important decreases between 2020 and 2021 for the big cities of Lisbon and Porto with respectively rental prices of -15,8% and -19,1%.
Real estate prices for rent in the Lisbon area
- Lisbon: average rental price in March 2021 1252€ vs 1487€ in March 2020 (-15.8%)
- Setubal: average rental price in March 2021 774€ vs 888€ in March 2020 (-12.9%)
- Evora: average rental price in March 2021 503€ vs 547€ in March 2020 (-8.1%)
- Leiria: average rental price in March 2021 502€ vs 521€ in March 2020 (-3.6%)
- Santarem: average rental price in March 2021 €523 vs €499 in March 2020 (+4.6%)
- Beja: average rental price in March 2021 510€ vs 499€ in March 2020 (+13.7%)
- Portalegre: average rental price in March 2021 342€ vs 378€ in March 2020 (-9.6%)
Real estate prices for rent in the Algarve
- Faro: average rental price in March 2021 837€ vs 829€ in March 2020 (+1%)
Real estate prices for rent in the Porto region
- Porto: average rental price in March 2021 €882 vs. €1091 in March 2020 (-19.1%)
- Vila Real: average rental price in March 2021 451€ vs 467€ in March 2020 (-3.4%)
- Braga: average rental price in March 2021 €664 vs. €714 in March 2020 (-7%)
- Coimbra: average rental price in March 2021 542€ vs 542€ in March 2020 (=)
- Viseu: average rental price in March 2021 170.550€ vs 162.830€ in March 2020 (+4,7%)
- Aveiro: average rental price in March 2021 231.489€ vs 215.224€ in March 2020 (+7,6%)
- Viana do Castelo: average rental price in March 2021 504€ vs 429€ in March 2020 (+17.6%)
Property prices for rent in Madeira and the East
- Bragança: average rental price in March 2021 381€ vs 370€ in March 2020 (+2.7%)
- Castelo Branco: average rental price in March 2021 416€ vs 397€ in March 2020 (+4.8%)
- Guarda: average rental price in March 2021 €425 vs €364 in March 2020 (+16.8%)
- R.A da Madeira: average rental price in March 2021 841€ vs 869€ in March 2020 (-3.2%)
Real estate investment in Portugal: an advantageous market and tax system
It is the diversity of offers that characterizes the real estate market in Portugal. Portugal is a very dynamic country economically, and remains accessible to all types of investors. Even with a modest budget, it is perfectly possible to find properties offering quality services in very pleasant environments. The very high end of the market is particularly interesting because luxury real estate is still accessible in Portugal compared to major cities in Europe.
The absence of property tax is one of the advantages of the Portuguese tax system. The status reserved for foreign residents who invest in the country is particularly attractive. The NHR or Non-Habitual Resident status is extremely advantageous because it exempts from any tax the income coming from abroad. This applies to dividends and interest. For retirees, the Portuguese state only taxes pensions at 10% for the first ten years.
Where to invest in Portugal?
Real estate investment in Lisbon
A capital by the sea. Lisbon is a city with a worldwide reputation. Its colorful tramway, its typical and lively streets, the friendly atmosphere and the wonderful views over the Tagus River are the assets that have made this city one of the most popular destinations in Europe. And the beaches can be reached by train in less than 30 minutes. The city is full of museums and historical sites which attract many tourists throughout the year.
Real estate investment in Porto
A city near the coast that is known for its production of a famous alcohol, port, which can be tasted in one of the many cafes that line this pleasant city with cobbled streets. Crossed by many bridges, Porto is a very dynamic city with a baroque architecture that gives it a very special atmosphere, a mixture of nostalgia and decadence. Stroll through the small streets of Porto and you will feel what this special place has to offer.
Real estate investment in the Algarve
Here we are in the south of the country, in one of the most beautiful regions of Portugal. Beaches as far as the eye can see, fishing villages as if frozen in time, secret coves preserved and a hinterland that conceals villages that are real treasures at the foot of the mountains. The Algarve is the most famous region in Portugal since surfers discovered the quality of its waves. This is one of the assets of this fishermen’s region which has many protected natural areas.
Real estate investment on the silver coast
Its countless beaches are spared from mass tourism. Its rich cultural heritage will delight history and architecture lovers. As for those who love hiking, there is plenty to do. The golf is also in the honor in this region which has about twenty courses. And how not to mention Nazaré, the most famous place in the world for thousands of surfers who come to rub shoulders with the most mythical of waves.
You have understood it, Portugal is the ideal country for a foreign investor. The current conditions allow access to services that are incomparable with other countries market. What’s more, you have a very wide choice that will meet the most diverse expectations. Lisbon, the very dynamic capital of the country, but also Porto and many other cities, everywhere you will benefit from the most modern infrastructures. The provinces, whether the Algarve or the Silver Coast, are rich in exceptional coastline. The hinterland is preserved and offers properties at prices that have nothing to do with what is offered in other countries in Europe. The Portuguese people are Francophile and very often you will be able to communicate in english because the Portuguese community has always been very numerous everywhere in Europe.
All this is easily and quickly accessible to you. A magnificent country, a charming population, a very rich culture, healthy and cheap food, all with guarantees of legal stability as secure as advantageous for the active as for the retired. Investing in real estate in Portugal is definitely the best decision to make given the current circumstances. Do not hesitate, this country will make you happy!
Be careful though, the laws and rules concerning real estate in Portugal are not the same as other countries in Europe or outside. For example, there are differences between real estate contracts. It is therefore important to be well informed and to be accompanied in order to avoid all types of problems that we can unfortunately see too often in the country.
Accompaniment for a real estate investment in Portugal
By validating the contact form, you authorize me to forward your request to an English-speaking person who will be able to contact you directly. This person is a professional who offers paid services whose price varies according to your requests, needs and projects. Nothing is automated: these are people I know, based in Lisbon and who are qualified to accompany you in your approach & your project.
