Buying a property in Porto
Porto graces a thousand tourist brochures, with its red roofs sparkling in the sunshine and iron bridges spanning the shimmering blue Douro River.
But Porto is more than just a pretty face. It is Portugal’s second largest city with a population of 1.7 million and the capital of the Porto District.
Porto is one of Europe’s most popular long-weekend destinations, with visitors drawn to its rich history, compact size, growing reputation as a tech hub and its port wine.
It lies in the northeast of Portugal where the Douro River meets the Atlantic.
Why buy a property in Porto
Porto is a compact city; less than half the size of Lisbon and a tenth of the size of London. Both the cost of living and property prices are cheaper than Lisbon.
But Porto is not to be under-estimated. It was made a UNESCO World Heritage site in 1996, in recognition of its status as one of the oldest European centres. The city is divided into a more modern side on the right bank of the Douro River and the older riverside district, the Ribera.
In recent years, Porto has been an international hub with many young professionals, investors and start-up companies choosing to invest in property or move there. Porto has lower cost of living and more affordable property options than Lisbon.
Porto has many fantastic beaches just a short drive away (or less than an hour via public transport). These include: Mindelo Beach, Moreiró Beach, Memória Beach and Aterro Beach.
How to get to Porto
Porto has the second busiest airport in the country. It is well-connected to Europe and flies to three locations in north America and another three in Africa. For a more diverse range of flights, you may have to travel to Lisbon airport or get a connecting flight to another major airport.
Porto city to the airport is just a 15-minute drive. You can also take the bus, subway or a shuttle.
To travel to Lisbon, you can get a train that takes about two hours and a half. By car, the journey takes three hours.
Porto has an efficient metro system and is well-suited to those that would prefer to be without a car.
The weather in Porto
Being in the north of the country and by the Atlantic, Porto has a more temperate climate than the Algarve. July and August are the warmest months with highs of 25°C and just two days of rain. January is the coldest with highs of 17°C and 13 days of rain. In autumn and spring, temperatures are mild, but the rain is persistent. Snow is rare in Porto.
Where to buy in Porto
- Ribeira: Located along the riverbank of the Douro, Ribeira is Porto’s oldest and most iconic neighbourhood. Its winding cobblestone streets and picturesque views make it a charming choice.
- Cedofeita: This trendy neighbourhood is close to iconic monuments and offers a vibrant atmosphere. It is right by shops, cafes and galleries.
- Foz do Douro: One of Porto’s more affluent neighbourhoods. Foz do Douro is perfect for seaside living, with a large luxury property market.
- Bonfim: A cool neighbourhood with a mix of historic and modern architecture.
- Vila Nova de Gaia: Although technically across the river from Porto, Vila Nova de Gaia is worth considering. It’s famous for its port wine cellars and stunning views of Porto’s skyline.
- Matosinhos: Known for its beaches and seafood restaurants, Matosinhos is a lively coastal neighbourhood.
- Gondomar: Located east of Porto, Gondomar offers a quieter residential setting.
- Oliveira do Douro: Situated along the Douro River, this neighbourhood provides a peaceful environment.
What can you get for your budget in Porto?
The property markets in Porto city and the wider region differ considerably. In the Porto district, you can find land plots and traditional houses in need of renovating for as little as €50,000.
As the city is more densely packed, there are less of these opportunities. In Porto city, the starting price for a one-bedroom apartment is €150,000.
There are some beautiful, renovated apartments located in historic buildings in older neighbourhoods like Ribeira. The cost of a family townhouse in downtown Porto is around €500,000. Larger villas tend to only be found in the Porto district.
Is a property in Porto a good investment?
Property in Porto is generally more affordable than in Lisbon. This is partly because Porto has yet to attract the same international crowd as Lisbon. But the city is up-and-coming with property prices growing faster than the Portuguese capital.
You can buy a centrally located property in Porto for much less than in Lisbon. As well as holiday lets, Porto is a hotspot for students. Portugal’s popular digital nomad visa is attracting young professionals to the city too. You will need to fully licence your Porto property for rentals.
Steps to buy in Porto
It’s best to be methodical and see buying property in Porto as simple set of steps, none of which is particularly difficult. Before you know it you can own your own home in Porto!
- Set a budget: Work out how much you have to spend. Read our guide, How to pay for a Portuguese property to see your options. Speak to Smart Currency Exchange about exchange rates and international payments. Get a mortgage approval in principle if required. Remember to allow for buying costs.
- Do you research: Research the best areas around Porto to buy for your particular budget, lifestyle, needs and interests. If aiming to move to Porto full time, connect with an independent lawyer to discuss your residency and visa options. If hoping to rent a property out, check if this is legally possible.
- Online search: Once you know how much you have to spend in euros, you can start browsing available homes for sale in Porto. Check out the appeal of different locations. Explore the area on Google Earth too, which will help you get an idea of the area. Make some enquiries on properties for sale in Porto at Your Overseas Home. This will open a dialogue with recommended, English-speaking estate agents in Porto.
- Book a viewing trip: When you have narrowed your online list as far as it will go, speak to an estate agent and book your trip to Porto.
- Make an offer: When you’ve found a property you like, make an offer via your estate agent.
- Reservation contract & deposit: Once accepted, you may be asked to sign a reservation contract (Contrato de Promessa de Compra e Venda) and pay a deposit. Before you pay the deposit, we recommend speaking to a currency specialist who can help you lock in the rate for the duration of your property purchase, to avoid it fluctuating with the markets. The deposit is usually around 20% of the purchase price.
- Completion: This will be at the notary’s office (or by your lawyer via power of attorney), probably two months or so later. Congratulations, you now own a property in Porto.
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