Is it possible to find affordable property in Portugal? Of course it is, you just have to know where to look. You won’t get your hands on a coastal villa in the Algarve without having to put your hand in your pocket, but there are certainly places where homes are more affordable than others.
Affordable coastal living
With the Atlantic to the south and west, and all the way around Madeira, Portugal offers plenty of options for coastal living. For many people, this means the popular Algarve region is the natural choice – although there are plenty of other seaside choices.
While it’s possible to spend millions on a home among the celebrities who flock to the central Algarve’s Golden Triangle, there are plenty of cheaper options. Apartments and houses requiring renovation are available even within the pricier areas for under €100,000. Go as far west as Praia da Luz and you could get three-bedroom properties of reasonable quality for the same price.
Along the Silver Coast, property is a little cheaper and you can find a pleasant and liveable three-bedroom apartment for less than €70,000. It probably won’t be in a holiday area, however. There is a reason why holidaymakers like to hang out together in resorts, where there are communal pools, shops, attractive landscaping and easy access to the beach. On the other hand, living in the local Portuguese community allows for another perspective on life.
Below are two locations that offer particularly excellent value for coastal living.
Vila Nova de Cacela
Vila Nova de Cacela in the eastern Algarve isn’t the cheapest area, you’ll find those further inland. However, this is a good compromise. The town is set back slightly from the coast, but still within a few kilometres of the beach. Amenities abound, and golf courses include the stunning and luxurious Monte Rei. While you’ll find plenty of luxury villas here, you can still pick up an apartment for around €100,000 and a townhouse for under €200,000.
Alcoutim
Alcoutim takes you further into the inland eastern Algarve, but you needn’t worry about the lack of a beach. Here you’ll find a river beach with warm water and a glorious town centre. This place feels very different to the touristy Algarve, but a 40-minute drive will land you right in the thick of things. In return for that short distance, the property is considerably cheaper, with country homes complete with land from around €85,000.
Affordable rural living
If you want to find the real bargains in Portugal, head inland to the Centro region. Rural property in Portugal with bags of character and (often) a generous amount of land is easy to find and incredibly affordable. In inland parts of the country, you could march into an estate agent with €50,000 and find plenty of options to choose from.
While many of these homes are quite a drive from the coast, river beaches abound in Portugal, so you’ll have no problem finding somewhere to cool off on hot summer days. There are also mountainous and remote areas – Portugal has just 112 people per square kilometre – so do bear in mind that neighbours may be few and far between and unlikely to speak English. You are may also find that a traditional Portuguese “fixer-upper” may need a total renovation, including new roof.
Below we’ve picked out two locations that offer particularly excellent value for rural living.
Viana de Castelo
Viana de Castelo is in the northern Minho region of Portugal. However, it’s a city of just under 90,000 inhabitants, nestled between river and sea with incredible wide sand beaches. Property here is excellent value — a decent apartment will cost around €150,000, and you can pick up restoration projects in the wider region for less than €100,000.
Miranda do Corvoin
Miranda do Corvoin, in the Coimbra province of Centro, is a good place to centre you search for truly cheap property in Portugal. It’s around here, in a breathtaking area dotted with hills and valleys, where you’ll find ruins and restoration projects for ridiculously small sums. There are plenty of ruins in the need of restoration for €25,000 or less. However, if you’d rather have something key-ready, you’ll find a “lock up and leave” holiday home in this region for less than €100,000.
Affordable city living
If city living is what you’re after, you’ll be pleased to find that you have affordable options right in the centre of Lisbon, Porto, Coimbra and Faro.
Unlike the Algarve, Lisbon has been identified by investors as having the perfect combination of low entry-level prices with plenty of room for prices to grow. Good-sized properties of 100 square metres are available for €200,000. The trick with city properties and weekend boltholes is finding those areas on the process of being “gentrified”. The good news is that applies to large parts of Lisbon and Porto – both of which are experiencing a real renaissance.
Coimbra is an interesting option if you want to enjoy a vibrant city life on a budget. Cheaper than Porto and considerably cheaper than Lisbon, the city still has plenty of charm. It’s within easy reach of Lisbon, Porto and the beaches of the Silver Coast, by both road and rail. You’ll find a city centre apartment from around €100,000, but things get really interesting if you drive to the outskirts, where you’ll find habitable houses for as little as €50,000, within just 10 minutes of the city.
Tips for finding a bargain in Portugal
Negotiating effectively
Haggling over the price of a property may be an uncomfortable prospect but it can save you thousands of euros.
When you enquire about the state of the property market, an estate agent may not be the most impartial judge. For an accurate picture, speak to other property professionals such as surveyors and property lawyers.
The more you know, the more you can leverage to ascertain is a price is fair or if the seller is being a little too optimistic. There can be a tendency in some markets to overprice for foreign buyers, especially in touristy areas and the cities.
Understanding additional costs
Whatever kind of property you buy in Portugal, it’s sensible to account for additional costs in the early stages of your buying process so you’re clear on the amount you have to pay.
Additional buying costs usually account for an extra 8-10% of the purchase price for Portuguese property. However, for cheaper properties, they may tend to be at the upper end of that scale.
The additional fees will include property transfer tax, known locally as Imposto Municipal sobre a Transmissão Onerosa de Imóveis or IMT for short. The standard rate is 5% for rural dwellings and 6.5% for urban properties. However, there is a sliding scale in place that can mean you may pay nothing at all for a low-cost property if it’s your main home. Alternatively, you could find yourself paying up to 8% on high-value properties.
Other fees will include stamp duty, notary and land registry fees and independent solicitor fees.
[For an accurate picture, get breakdown of the additional buying costs in Portugal]
