Over the past few years, Portugal has become known for its beauty, contemporary culture, old-world charm, and numerous lifestyle advantages – making it a top choice for expats and international property investors alike.
The outlook for 2025 and beyond is no different. According to Euro News, Spain and Portugal were the top destinations for buying property in Europe in 2024. Portugal was the second most searched country, with more than 270,000 searches of terms related to buying property in the country.
With over 300 days of sunshine each year, a welcoming community, a relaxed pace of life, and affordable Portugal house prices, this Western European country offers an attractive lifestyle at a relatively low cost.
The increasing interest in this gem on the Atlantic coast has fueled significant growth in the Portuguese real estate market. The country draws expats and property buyers with its excellent living standards, renowned cuisine, and high-quality healthcare and education systems.
One of the country’s most attractive qualities is that foreign investors enjoy the same property ownership rights as Portuguese citizens, with no restrictions based on nationality. Whether you’re looking to purchase a charming apartment, a sprawling villa, or commercial real estate, the process is straightforward and accessible.
In this comprehensive guide for the potential Portuguese property owner, we delve into house prices in Portugal, take a look at a few of the best cities for property investment, and even discuss visa options for foreigners looking to take advantage of the country’s vibrant property market.
Why do foreigners buy properties in Portugal?
Foreigners are drawn to purchasing property in Portugal due to its affordability, appealing climate, lifestyle, safety, and quality of life. Plus, Portugal’s real estate market is relatively affordable compared to other European countries, and the country’s lower cost of living further enhances its appeal.
Portugal’s mild climate, characterized by warm summers, cool winters, and year-round sunshine, adds to its desirability as a destination. Many buyers are also captivated by its relaxed lifestyle and friendly communities, alongside its rich cultural heritage showcased in the country’s historic architecture, diverse cuisine, and vibrant arts scene.
Portugal consistently ranks as a safe country, securing the seventh spot on the 2024 Global Peace Index, which provides peace of mind to residents and investors alike. The nation also offers a high quality of life, with excellent education and healthcare systems, renowned gastronomy, and a wide range of cultural and recreational activities, including festivals and events throughout the year.
The average cost for property in Portugal ranges from €1,903 per square meter in Northern Portugal to €4,935 per square meter in the Lisbon Metropolitan Area. Additionally, as we’ve mentioned, the absence of restrictions on foreign property ownership allows non-residents to purchase and own property with the same rights as Portuguese citizens.
Inside the Portuguese Real Estate Market
Whether you are looking for a new family home or an investment property, Portugal offers a variety of incredible property options available when buying any form of real estate. According to recent reports by the Confidencial Imobiliário, Portugal’s real estate market has steadied and recovered since the second quarter of 2023, gaining a 2.5 percent increase in quarterly sales.
The Portugal News has also reported that the Portuguese real estate market grew 51 percent in 2024, and foreign capital accounted for 81 percent of total investment in the sector.
According to the Portuguese real estate market’s 2024 results, the outlook for 2025 is highly optimistic. Due to factors that include economic growth, favorable financing conditions, and a reduction in interest rates, the real estate market in Portugal is expected to continue growing due to increased transactions and higher investment volumes. It could potentially reach 2.4 billion euros, and year-on-year growth of 8 percent is expected.
The Portuguese real estate market is expected to grow in 2025, with Lisbon, Cascais, and Porto leading as the main investment destinations. The popular Algarve region and emerging areas like Northern Portugal are also attracting investor attention due to tourism and competitive costs.
Additionally, reports reveal that during the first half of 2024, North Americans bought the most residential property in Portugal and have been among the top five nationalities that invested the most in the country since 2018.
Below, we will cover the latest on average house prices in Portugal and other additional property costs you can expect to pay when investing in your dream home or investment property.
Portugal house prices: Average house prices in Portugal
How much does buying property in Portugal cost? The table below provides an overview of the average house price per square meter in major Portuguese districts. The property prices reflected in the table are asking price values, and the sales price can be considerably lower or higher than these amounts.
Portuguese District | Average Property Price in 2025 (€/m2) |
Lisbon Metropolitan Area | €4,935 |
Porto Metropolitan Area | €3,937 |
Northern Portugal | €1,903 |
Central Portugal | €2,098 |
Alentejo | €3,181 |
Algarve | €4,385 |
Home prices in Portugal: Rental yields in Portugal
As many foreign buyers are buying property in Portugal as an investment, considering current rental yields in the country is as important as considering the average house price.
In 2024, rental yields in Lisbon stood at 5.2 in the city center and increased to 6.8 percent in the Lisbon Metropolitan Area. Setúbal and Barreiro are particularly attractive areas, with yields standing at 7.3 and 7.8 percent, respectively. Yields in Sintra stood at 6.8 percent, while in Cascais, yields stood at 5.5 percent, which are two popular locations for expat buyers.
In Porto, the second-largest city in the country, yields are 6.6 percent for the Metropolitan Area of Porto and 5.9 percent for Porto City, while the average yield in the Algarve is 5.6 percent.
Additional property purchase costs
When purchasing real estate in Portugal, it’s important to account for additional property purchase costs alongside the cost of ownership and maintenance. Legal fees range from €2,000 to €5,000, varying by property type, price, and complexity. The Land Registry fee is €250, and notary services typically cost around €500- €1,000.
If a mortgage is required, you can expect to pay an application fee of €290 and a bank valuation fee of €280. For those pursuing residence by investment, individual cost calculations may include these fees. Proper budgeting for these expenses ensures a clear understanding of the financial responsibilities of property ownership in Portugal.
Portugal Housing Prices: Exploring House Prices by City in Portugal
Portugal is renowned for its appealing lifestyle benefits, making it a top destination for expats. Among the key attractions are the affordable cost of living and real estate options that cater to a variety of budgets.
With its warm, inviting climate and breathtaking beaches along the Atlantic Ocean, Portugal offers a relaxed, budget-friendly environment ideal for those envisioning a new chapter of life abroad.
The country also boasts excellent infrastructure, including a highly efficient national healthcare system and a wide range of international schools and tertiary education institutions, ensuring quality education for families relocating here. For prospective property buyers, Portugal presents diverse opportunities across its cities and regions.
In the sections below, we will delve into house prices in some of the most desirable locations to purchase Portuguese property, providing valuable insights into what makes this vibrant country such an attractive investment and lifestyle choice.
House prices in Lisbon
Lisbon, Portugal’s vibrant capital, is home to a diverse range of neighborhoods, each offering unique characteristics for prospective property buyers. In the central business district, areas like Baixa, Bairro Alto, and Príncipe Real are popular for their cobbled streets, lively nightlife, and boutique shopping.
Family-friendly options include Estrela, with its spacious parks, and Alvalade and Campo de Ourique, known for their relaxed atmosphere. Popular neighborhoods like Parque das Nações feature contemporary amenities and infrastructure.
When it comes to average prices, the Lisbon Metropolitan Area averages €4,935 per square meter, while the city center reaches €6,934. Specific areas vary, with Estrela at €7,694, Parque das Nações at €8,517, Avenidas Novas at €8,377, Alvalade at €6,235, Belém at €6,757, and Campo de Ourique at €6,974.
House prices in Cascais
With its refined atmosphere and unparalleled amenities, Cascais is a premier choice for upscale property buyers. Located just 30 minutes from Lisbon, Cascais is a sought-after destination for luxury living along Portugal’s breathtaking coastline.
Known for its stunning beaches, renowned restaurants, and rich cultural attractions, the town appeals to both residents and visitors seeking elegance and charm when buying property in Cascais, Portugal. Cascais boasts world-class golf courses, picturesque marinas, and a unique blend of sophisticated and relaxed living, making it an ideal retreat for those desiring an upscale lifestyle.
In São Domingos de Rana, homes and apartments are priced at €3,841 per square meter, while Alcabideche offers properties at €5,487 per square meter. For high-end investments, Carcavelos and Parede feature properties starting at €7,365 per square meter, with Cascais and Estoril presenting even more luxurious options at €8,389 per square meter.
House prices in the Algarve
Foreign buyers interested in buying property in the Algarve, Portugal, will discover several opportunities in this breathtaking region along southern Portugal’s sun-drenched coastline.
Renowned for its azure waters, golden beaches, and enchanting ambiance, the Algarve attracts not only vacationers but also expats and retirees seeking a serene coastal lifestyle. The area’s allure is heightened by its harmonious blend of world-class golf resorts and charming fishing villages, offering an idyllic setting for a relaxed yet sophisticated way of life.
In highly desirable locations such as Lagos, Albufeira, and Faro, property prices per square meter underscore the region’s popularity, with Lagos averaging €5,066, Albufeira at €4,176, and Faro, the Algarve’s vibrant capital, starting at €3,701. For those exploring more budget-friendly options, Tavira offers homes priced at €3,660 per square meter, making the Algarve an appealing choice for a variety of buyers.
Cost of homes in Portugal: House prices in Northern Portugal
From the vibrant cityscape of Porto to the tranquil shores of Vila do Conde, Northern Portugal boasts a diverse real estate market suited to varying preferences and budgets.
Porto, the vibrant heart of the North and a gateway to authentic Portuguese traditions offers premium property at €4,883 per square meter. For those seeking more budget-friendly alternatives, Vila do Conde presents an attractive option with charming properties priced at €2,832 per square meter.
Matosinhos, known for its perfect balance of urban energy and coastal allure, offers homes at €3,884 per square meter, appealing to a broad spectrum of buyers. Across the Douro River lies Vila Nova de Gaia, celebrated for its iconic port wine and picturesque vistas. Here, properties are valued at €3,759 per square meter, providing a harmonious mix of history and modern living.
House prices in Southwest Portugal
House prices in Southwest Portugal vary depending on the area. In the Grândola municipality, Melides and Tróia feature properties priced from €5,845 per square meter, while in Alcácer do Sal’s Comporta, prices start at €4,066 per square meter.
Both Melides and Comporta have grown in popularity due to their breathtaking coastal settings and architectural styles that harmonize with the natural environment. Comporta, often referred to as the “Hamptons of Europe,” has become a magnet for celebrities and high-profile individuals, further garnering a reputation as an exclusive destination.
For more affordable options, the Alentejo region offers properties averaging €3,181 per square meter. Renowned for its tranquil countryside, the Alentejo is characterized by vineyards, medieval villages, and a slower pace of life, making it an appealing choice for those seeking a traditional Portuguese lifestyle in a picturesque and serene environment.
Portugal real estate prices: House prices on the Madeira and Azores Islands
Property prices on Madeira and the Azores Islands are home to several opportunities for international investors. In the Azores, São Miguel Island, the largest of the archipelago, serves as a reference point, with property prices starting at €1,925 per square meter.
This figure highlights the potential for investment in these autonomous regions. Madeira, located off the northern coast of Africa, is renowned for its advanced infrastructure, particularly in Funchal, the island’s cosmopolitan capital, which attracts many foreign buyers.
The island’s appealing year-round climate perfectly complements its luxurious lifestyle and the average price for a house in Madeira is currently €3,251 per square meter. In contrast, the Azores, situated northwest of Madeira, are celebrated for their dramatic landscapes, lush green hills, and rustic culinary offerings, which provide a distinct cultural charm to potential property owners.
House prices on the Silver Coast
For dramatic scenery, head to the Silver Coast. This region is celebrated for its natural beauty and cultural charm. Stretching between Lisbon and Porto, the Silver Coast features golden beaches, rugged cliffs, and picturesque fishing villages, offering an authentic taste of local life.
The Silver Coast’s property market reflects its diverse appeal. In Aveiro, renowned for its scenic canals and vibrant boats, properties begin at €3,153 per square meter. Meanwhile, Figueira da Foz in the Coimbra district offers a more affordable seaside option at €2,332 per square meter.
Caldas da Rainha, a delightful city in the Oeste region, combines historical allure with modern amenities, with prices starting at €2,299 per square meter. The enchanting areas of Nazaré and Óbidos, celebrated for their unique attractions, offer properties at €2,856 and €3,657 per square meter, respectively.
How to Buy Property in Portugal as a Foreigner
Now that we’ve explored the pricing range of properties available for purchase in Portugal, we will delve into the buying process and guide foreign investors through the property purchase journey.
Can foreign investors buy property in Portugal?
Yes, foreigners can buy property in Portugal. There are no restrictions to non-Portuguese citizens buying property in the country, and you will have the same rights as Portuguese citizens when it comes to buying and owning property. However, if you are looking to move to Portugal, you will need to obtain residency in the country through one of the many visa options offered by the Portuguese government.
Advantages of buying property in Portugal
Foreigners are drawn to purchasing property in Portugal due to its affordability, appealing climate, lifestyle, safety, and quality of life. Plus, Portugal’s real estate market is relatively affordable compared to other European countries, and the country’s lower cost of living further enhances its appeal.
Documents required for property purchase
In addition to obtaining a NIF number (Portugal Tax Identification Number), which you apply for at a local Portuguese tax office, you will need the following documents to buy property in Portugal.
- Photo ID: A valid identification document that verifies your identity.
- Contrato Promessa de Compra e Venda (CPCV): The buying contract or property deed that outlines the terms and conditions of the property purchase.
- Energy Certificate: This document provides information about the energy efficiency of the property and must be presented to you by the seller.
- Imposto de Selo: The stamp duty payment, which is a tax required by the Tax Authority for property transactions.
- Caderneta Predial: The land registry certificate that contains information about the property, including its location, boundaries, and registered owner. The land registry certificate, issued in paper format, serves as evidence of the legal status of a property as of the date of issuance. The land registry certificate compiles and describes the current registrations applicable to that property.
The steps of the buying process
For both Portuguese citizens and foreign investors, the property-buying process takes place in the following five steps:
Step 1: Find the perfect property
Begin with an idea of where you would like to buy and the type of property that you would like to purchase. Set a budget and conduct thorough research online to get a basic understanding of the Portuguese real estate market.
Factor details like location, amenities, proximity to essential services, and potential for rental income into your search. We recommend seeking the assistance of real estate professionals like Goldcrest, who understand the property market and can help you find your ideal property.
Step 2: Secure financing
Assess your financial situation and explore your financing options. If you plan to take out a mortgage, research various Portuguese banks to find the best interest rates and terms that suit your needs. Ensure that you have a clear understanding of the associated property costs, including taxes, legal fees, and property registration expenses.
Step 3. Make an offer
When you find a property that fits your criteria, it’s time to make an offer. Negotiation is a customary part of the process in Portugal, so be prepared to engage in back-and-forth discussions with the seller until both parties reach a mutual agreement. If you work with a real estate professional, such as a buyer’s agent like Goldcrest, they can help you with this, enabling you to secure the property at the best possible price.
Step 4: The Reservation Agreement and Promissory Contract (CPCV)
Once the offer is accepted, you will sign the Reservation Agreement and Promissory Contract (CPCV). This contract solidifies intent to purchase and typically requires you to pay a deposit, which is often around 10 percent of the property’s purchase price.
Step 5: Sign the Escritura (Final Deed)
The final step in the property purchase process is signing the Escritura, also known as the Final Deed, in the presence of a Notary. This is the formal contract that transfers ownership of the property from the seller to the buyer.
Exploring Portuguese Visa Options for Expats
Obtaining a residence permit is a vital step for property investors who are non-EU citizens looking to move to Portugal to live in their brand-new residential property. The Portuguese government offers a number of visa options that enable foreigners to acquire residency in Portugal. These options include the Portugal Golden Visa Program and the Portugal Passive Income Visa, known officially as the Portugal D7 Visa, the Portugal Digital Nomad Visa, and the Portugal D3 Visa for highly skilled workers. Learn more about these visa options and their requirements from Global Citizen Solutions, our migration and residency partner.
Will you obtain residence by investment in Portugal?
Yes, you can obtain residence by investment. However, residency by investing in property is no longer possible as real estate purchases are no longer a qualifying investment route. The Portuguese government offers a number of visa options that enable foreigners to acquire residency in Portugal, including the Portugal Golden Visa Program and the Portugal Passive Income Visa, also known as the Portugal D7 Visa, the Portugal Digital Nomad Visa, and the Portugal D3 Visa for highly skilled workers.
Find Your Dream Property with BE Global
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Explore our exclusive listings and work with our experts who offer market insights for smart investment choices and exceptional customer service to find the property investment perfectly tailored for your lifestyle ultimately.
Contact BE Global Properties today and start your journey to discover the property of your dreams.
Frequently Asked Questions about Portugal House Prices
How much is a house in Portugal?
The average price for a house in the Lisbon Metropolitan Area is €4,935 per square meter, while in the Porto Metropolitan Area prices stand at €3,937 per square meter, and €4,385 per square meter in the Algarve region.
How much is a house in Portugal in us dollars?
The average price for a house in the Lisbon Metropolitan Area is €4,935 per square meter, which converts to $5,148 in US dollars.
How much does property cost in Portugal?
House prices in Portugal fluctuate as they do in every country’s real estate market. The average price for a house in the Lisbon Metropolitan Area is €4,935 per square meter, while in the Porto Metropolitan Area prices stand at €3,937 per square meter, and €4,385 per square meter in the Algarve region.
What are the property prices for the Portugal Golden Visa Program?
It is important to note that real estate investments are no longer a viable investment route for the Golden Visa program. House prices in Portugal fluctuate as they do in every country’s real estate market. The average price for a house in the Lisbon Metropolitan Area is €4,935 per square meter, while in the Porto Metropolitan Area prices stand at €3,937 per square meter, and €4,385 per square meter in the Algarve region.
Can a participant of the investment program obtain Portugal citizenship?
Yes, participants in Portugal’s Golden Visa program can obtain Portuguese citizenship after maintaining residency for five years and meeting the necessary requirements, such as basic Portuguese language proficiency and demonstrating ties to the country. Note that investing in Portugal real estate is no longer an eligible option, although there remain several attractive options, such as the investment funds pathway.
Why is the purchase of real estate the most popular investment program option?
Real estate investments are no longer a viable investment route for the Portuguese Golden Visa program.
What expenses does an investor bear when buying and maintaining real estate?
When purchasing real estate in Portugal, it’s important to account for additional property purchase costs alongside the cost of ownership and maintenance. Legal fees range from €2,000 to €5,000, varying by property type, price, and complexity. The Land Registry fee is €250, and notary services typically cost around €500- €1,000. If a mortgage is required, you can expect to pay an application fee of €290 and a bank valuation fee of €280.
What are other investment options available under the Portugal Golden Visa Program?
While the real estate pathway is no longer availavle, the Portugal Golden Visa Program offers diverse investment options. These include contributing at least €500,000 to Portuguese investment funds, such as private equity or venture capital funds.
Alternatively, applicants can invest or donate a minimum of €250,000 toward the arts or the reconstruction of national cultural heritage. Contributions of at least €500,000 to science or technology research are also eligible.
Other options include creating and maintaining ten jobs or investing €500,000 in venture capital or share capital for a company headquartered in Portugal. The latter requires the creation of five new jobs or maintaining ten existing ones, with five permanent positions.
Which regions of Portugal have the most expensive properties?
The sought-after regions of Lisbon and Cascais historically have the most expensive properties in Portugal. The Lisbon Metropolitan Area averages €4,935 per square meter, while the city center reaches €6,934. Cascais e Estoril presents even more luxurious options at €8,389 per square meter.
Can foreigners take out mortgage in Portugal to buy a property?
Yes, foreign investors buying property in Portugal can obtain a mortgage. Whether they are permanent residents, expats, or investors from abroad, banks offer mortgages in Portugal for non-residents if the applicants have a strong credit score and history.
Can foreigners rent out villas and apartments in Portugal?
Yes, foreigners can buy and rent property in Portugal. There are no restrictions to non-Portuguese citizens buying or renting property in the country, and you will have the same rights as Portuguese citizens when it comes to buying and owning property. However, if you are looking to move to Portugal, you will need to obtain residency in the country through one of the f visa options offered by the Portuguese government.
How much does a house cost in Portugal?
The average house price in Portugal for a house in the Lisbon Metropolitan Area is €4,935 per square meter, while in the Porto Metropolitan Area prices stand at €3,937 per square meter, and €4,385 per square meter in the Algarve region.
How to take out a mortgage on a property in Portugal?
To apply for a mortgage for a property in Portugal, you can contact a Portuguese bank or mortgage broker, and submit required documents which include your passport, proof of income, bank statements, purchase contract, Portuguese tax number (NIF), and proof of address which will help you complete a property valuation. Note that additional paperwork, such as employment contracts or tax returns, may be required.
How to buy an apartment or house in Portugal?
To buy an apartment or house in Portugal, you must first obtain a NIF number from a local Portuguese tax office. You will also need a valid photo ID to verify your identity. The purchase process involves signing a Contrato Promessa de Compra e Venda (CPCV), which outlines the terms of the transaction.
The seller must provide an Energy Certificate detailing the property’s efficiency. Additionally, you must pay the Imposto de Selo (stamp duty tax). The Caderneta Predial, a land registry certificate, verifies the legal status, location, and ownership details of the property at the time of issuance.
