Last Updated on April 16, 2024 by Prince
For the past couple of years, the Portuguese real estate industry has changed quite a bit. From short-term tourist rentals to holiday homes on islands for expats, the market is diverse. This guide will tell you all about the cheapest areas to buy property in Portugal, so stick along!
For those looking to immigrate to Portugal, buying a house is a dream. But it’s an achievable dream. Property prices in Portugal aren’t soaring through the roof, and buying a house is very much possible.
This article will guide you about where to find the cheapest property and what “cheap” means in the Portuguese market. Let’s have a closer look!
What are the cheapest areas to buy property in Portugal?
As an expat in Portugal, we reckon that it can be quite difficult for you to identify the regions that are cheap as far as real estate investment is concerned.
So in an effort to point you in the right direction, here is a rundown of the 5 cheapest areas to buy property in Portugal.
Central Portugal and the Silver Coast
The Silver Coast and Central Portugal are among the many places that often fly under the radar of most tourists and expats.
Often referred to as the “Costa de Prata”, it is a long stretch of old coastal towns that largely remains unexplored.
The rugged coastline with clean sandy beaches is just the perfect space for a lot of water sports.
When it comes to real estate prospects, this particular region is home to three districts that remain to be among the most affordable places to buy property in Portugal. The three cities include Aveira, Coimbra, and Leiria.
To put it into perspective, in the Coimbra district, the average cost of property is €1,391/m2 as compared to other major cities like Lisbon, where the price per square meter is €3,896/m2.
Data is from Idealista (as of January 2024).
Alentejo
If you are looking for a tranquil place to settle away from the hustle and bustle of the major cities in Portugal, then Alentejo might just be the place for you.
The long plains and the medieval castle are where tradition meets nature in Portugal. Only recently has the world noticed how beautiful this region is, and expats are getting interested.
One unique factor about Alentejo is that it is the region with the lowest population density in Portugal. But the market is slowly growing thanks to tourism. If you wish to rent your property, Alentejo is a great choice!
Real estate prospects really boomed in Alentejo thanks to the changes in the Golden Visa program. After Lisbon, Porto, and the Algarve were crossed off the list of potential purchases, smaller towns like Alentejo took the lead, and many people invested their money here. Unfortunately, as of January 2024, real estate investments are not an option for the Golden Visa. But you can invest in investment funds for the Golden Visa.
Here’s a breakdown of the cost of buying a property in the different districts in Alentejo.
Northern Portugal
The northern part of Portugal is among the most populous regions in the whole country. The second-largest city of Portugal, Porto, is home to the majority of the population in this part of the country. Buying a house in Porto is a common profitable real estate investment.
However, other than Porto, there are other towns in Northern Portugal that offer plenty of opportunities for cheap real estate investment.
Data from Idealista shows that the average price for property in the northern region of Portugal is €1,962/m2.
Madeira
This autonomous region of Portugal easily qualifies as one of the most attractive regions in the country. Living in Madeira is, without a doubt, a privilege.
Hence why buying a house in Madeira is an even bigger privilege. It is home to some of the most beautiful landscapes and is eventually getting the recognition it deserves.
This tropical island, right in the middle of the Atlantic Ocean, has so much to offer to expatriates.
It is among the least expensive places to live with an easy pace of life. The real estate industry in this region of Portugal is doing quite well.
In fact, real estate prices have risen by 20.9% since 2022. Here is a breakdown of real estate costs in the popular neighborhoods in Madeira.
| Town | Price per m2 |
|---|---|
| Câmara de Lobos | €2,240 |
| Funchal | €3,189 |
| Ponta do Sol | €2,103 |
| Calheta | €2,960 |
Azores
Similar to Madeira, the island of Azores is found in the Atlantic Ocean. The lush green hills and the iconic black volcanic sandy beaches are what make this region famous. Investing in real estate in the Azorean islands may also turn out to be very good.
The Azores archipelago is a paradise for nature lovers. The rugged terrain and beautiful scenery will give you so much to explore.
The 9 islands that make up the Azores are not inhabited by many people, the population is small with only 1.7% making for expatriates. Which may or may not be advantageous for those looking to live in the Azores.
There are plenty of opportunities for buying land and houses here! Estimate property prices range from €3,000 to €7,000 for rustic properties. And from €40,000 to €80,000 for urban properties.
If you’re interested, some areas to check out are Flores, Graciosa, Santa Maria, São Jorge, and Faial.
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Are the cheapest areas in Portugal any good?
Contrary to most beliefs, Portugal has much to offer besides Lisbon, Porto, or the Algarve.
It is almost unbelievable how a relatively smaller country like Portugal is full of so much beauty.
Having said that, investing in real estate in the cheaper regions in Portugal is absolutely worth it. In fact, you stand to benefit from Golden Visa Programs since most of these places are considered rural areas.
What’s more, regions like the Islands of Madeira and Azores, give you quality slow-paced life away from the noise and busy city life.
Property is relatively cheaper, and more investors are also getting interested in these regions. Here is a tip, if you want to get a real bargain in Portugal, focusing on the inland rural regions, everything is more affordable than the city and coastal towns.
Investing in these regions offers not only an opportunity for financial gain but also a chance to be a part of the country’s genuine charm. As the popularity of these hidden gems grows, as it has in recent years, now is the time to explore and secure a piece of Portugal’s hidden treasure!
Are they better than the most expensive areas in Portugal?
Well, every region in Portugal has its fair share of challenges and also advantages. So it is not fair to make a blanket remark as to whether the cheaper regions are better or not.
Some of the most expensive regions, like Lisbon, Porto, and the Algarve, undoubtedly receive a higher inflow of tourists and have developed facilities that cater to the crowd.
Because of this, it’s easy to notice a higher property appreciation in these areas. Thus, more lucrative short-term rentals can help owners receive profitable earnings in peak seasons.
However, to put things into perspective, let’s look at the major advantages and disadvantages of the cheaper regions to buy property in Portugal.
- Check out our article on The Most Expensive And Cheapest Places To Rent A Property In Portugal.
Pros of investing in the cheapest places in Portugal
- Good future real estate prospects: With the new changes in the Golden Visa Program, a lot of investors are turning away from the major cities and looking to the rural towns. Also, the real estate industry is booming in Portugal as a whole, so it is likely that properties will appreciate significantly in the near future.
- Overtourism is a real problem in major cities like Lisbon or Porto. These cities are too small to handle the volume of tourists that flock each summer. The peak of tourism months often causes a strain on public resources (via Portugalist). Choosing to settle in the more inland and rural parts of Portugal will mean you won’t be bothered by too many tourists.
- Affordable cost of life: The cost of living in the major cities can be quite high compared to the other areas. So if you are the frugal type, the cheaper areas will make more financial sense for you.
Cons of buying property in the cheapest areas in Portugal
- Return on your investment may take some time. Yes, it is true that there is an increasing interest in these regions because of the new Golden Visa program regulations. However, it will take some time for you to get a good return on your investment.
Can I apply for a Golden Visa by purchasing any property in Portugal?
The Golden Visa Program has been an incentive for several years now used to attract foreign investors to Portugal.
However, 2022 saw some changes to this program that were meant to encourage foreign investment in other types of opportunities.
So it is no longer possible to qualify for the Golden Visa program if you choose to buy property..
This change took place gradually. First, the three main regions of Portugal were removed from eligible areas. After this change, to qualify for the Golden Visa, you needed to invest in real estate in the autonomous regions of the Azores and Madeira. Or any other inland region considered rural with a low population density.
As of now, investment funds are the correct way to go about your Golden Visa applications! And they’re as profitable as other forms of investments!
But even before you begin that process, contact experts to familiarize yourself with current rules and regulations. The Golden Visa undergoes constant changes, so it’s important that you ensure what the process entails currently.
- Read More: Complete Guide to Golden Visa in Portugal.
Is it worth investing in the cheapest areas to buy property in Portugal?
There are plenty of reasons why it is a good idea to invest in Portugal, whether it is in the cheap areas or in the cities.
The economy is slowly looking up, and the country is also politically stable. Other than that, here are a few other reminders of what Portugal has to offer:
- Affordable cost of living
- Quality lifestyle
- Tax benefits for expats
- Good weather all year round
- A lot of attraction sites fit for tourism
So the choice of whether to invest in Portugal remains entirely up to you. Do your due diligence extensively and look at the pros and cons; only then will you be in a position to make an informed decision.
Do you need help investing in real estate in Portugal?
If you’re ready to invest in the cheapest areas to buy property in Portugal, we recommend getting professional help. The public system in Portugal has a lot of bureaucracies, and it can be quite overwhelming for anyone new to the process.
Book a consultation with Viv Europe and focus on getting answers to all your queries. Our experts have the experience and knowledge to help you through the process, just like they have done for hundreds of others.
Also, be sure to take a look at other blogs on our website and find out more about life experiences in Portugal. You can consider following our Facebook Group – All About Portugal for Expats for up-to-date information on events that are important to expat life in Portugal.
It might be a lengthy process, but it is well worth the wait! Let’s get started working on your dream project in Portugal!
