The property market in Portugal is booming, with an influx of investors and expats seeing just how beneficial living and owning real estate in the country is. Statista reports that the Portuguese real estate market is experiencing a surge in demand from international buyers seeking attractive investment opportunities in the country’s growing economy and projects Portugal’s real estate market will reach a value of €1.49 trillion by the end of 2024.Â
If you are looking into purchasing property, this article will help you find the best places to buy real estate in Portugal. We will explore the best locations and best cities in Portugal to look into, what to expect, and what the property prices will be in those areas.
Buying Real Estate in Lisbon
As the capital city, Lisbon is a natural first place to look when buying a home in Portugal. Real estate prices in Lisbon tend to be higher than in other parts of the country, but snapping up a home here is certainly worth it, not least because of the city’s infectious energy and the perfect blend of tradition and innovation – plus, the city remains a top investment spot and one of the best places to buy property in Portugal. If you’re interested in investing in property in Lisbon, take a look at our Lisbon real estate investment guide.Â
Advantages of buying property in LisbonÂ
In 2024, the average price of property in Lisbon City was €6,934 per square meter, with the Lisbon Metropolitan Area’s average per square meter at €4,935, with property yields at 6.8 percent. If you look to purchase property in the outer areas of Lisbon, you’ll find the properties are even more affordable. Either way, these prices are a steal for the quality of life that Portugal’s capital offers. Here are some of the main advantages of living in Lisbon.
- High-quality lifestyle, with pleasant weather, efficient transport, and low crime rates
- Excellent gastronomy, with Lisbon being crowned as Europe’s Best Culinary City Destination for 2024 in the World Culinary Awards
- World-class museums and art galleries
- 30 International schools to choose from
- Locals speak English well
- Affordable cost of living compared to other Western European countries
- A vibrant nightlife and social scene
- Close proximity to nature and stunning beaches
Lisbon’s neighborhoodsÂ
Whether you prefer the relaxed and laid-back lifestyle, are more interested in outdoor activities, or are looking for a family-oriented place to settle, there is a neighborhood in Lisbon to suit your needs. Here are our top picks for neighborhoods in Lisbon and you can discover more in our luxury real estate Lisbon guide:
- Alfama: Known to be authentic and atmospheric, Alfama is Lisbon’s oldest neighborhood. Here, you’ll be surrounded by the enchanting sounds of traditional Fado music and historic landmarks like São Jorge Castle. The neighborhood has a village-like feel, with cobblestone alleys and local markets.Â
- Baixa: You’ll find lively, bustling Baixa in the downtown area of Lisbon. Baixa is suited to those who prefer the convenience of city living, with grand plazas (like Praça do Comércio and Rossio), shops, restaurants, and cafés all relatively close by. Baixa also has a thriving nightlife scene.
- Graça: A quaint residential hilltop neighborhood offering stunning views of Lisbon. Graça has easy access to the city center when needed while providing some respite from the denser tourist areas.
- Estrela and Campo de Ourique: Family-friendly locations, Estrela and Campo de Ourique are peaceful yet vibrant locations not far from each other. Here you’ll find gorgeous cafés, restaurants, and green spaces as a break away from the more bustling areas of Lisbon, with the added benefit of easy access to international schools.
Lifestyle in LisbonÂ
Lisbon is the ideal city for expats who want an authentic Portuguese experience without compromising on modern comforts. Lisbon’s laid-back lifestyle is easy to adapt to, with a pleasant climate, rich cultural scene, friendly locals who are used to seeing a diverse range of people and nationalities, and amazing food.
Transportation in LisbonÂ
Transport in Lisbon is reliable and efficient, and you will have your pick between trams, buses, taxis, and trains. Bolt and Uber are also widely available. The international airport in Lisbon also provides convenient national and international flight links.
Things to do in LisbonÂ
Lisbon, like most of Portugal, offers a laid-back lifestyle. Its residents opt for leisurely strolls in parks, relaxing on the beach, or sitting at a café. Art and history lovers will also enjoy the world-famous sights, like the Belém Tower and Jerónimos Monastery, and top museums like The Museum of Art, Architecture, and Technology.Â
Things to be aware ofÂ
As a city that generally hosts a lot of tourists, there is an increased risk of being pickpocketed. It is best to remember this when out in public to be aware of your surroundings and take care of your belongings, whether you are visiting or considering buying property in Lisbon.Â
Buying Real Estate in Porto
Porto is not too far behind Lisbon in popularity among expats, and when it comes to the Portugal real estate market, Porto is a rapidly growing area with options like modern apartments in the city center and even quaint country houses in Portugal further afield. According to Knight Frank’s The Wealth Report 2023, Porto ranked among the world’s top 10 luxury real estate markets, along with the Algarve. The 2024 Portugal Real Estate Market Overview also reports that, in the first quarter of 2024, the number of properties sold in Porto increased by 5.3 percent compared to the same period in 2023.Â
The property values of the Portuguese property for sale increased by 9.4 percent in the high-end property market and 8.2 percent for more affordable properties not classified as luxury houses. This highlights that Porto homes make excellent investment properties. Let’s explore the main reasons why foreigners buy property in Porto.
Advantages of buying property in PortoÂ
Porto’s average property price per square meter is lower than Lisbon’s at €4,883 in Porto City and €3,937 in the Porto Metropolitan Area. With more affordable properties on offer, it makes sense that demand is increasing. Here are some of the other main reasons expats choose Porto when researching where to buy property in Portugal.
- A popular area for foreign property ownership, with increasing demand and attracting profitable rental yields (6.6 percent in the Porto Metropolitan Area) for property owners
- A bustling hub for innovation, tech startups, and digital nomads
- Laid-back restaurants and charming boutiquesÂ
- Unique, authentic architecture drenched in culture and history
- Easy access to other iconic locations in Portugal, like the stunning beaches along the Silver Coast and Portugal’s Peneda-Gerês National Park.
Porto neighborhoodsÂ
If you’re considering Porto as your choice among the best places to buy real estate in Portugal, here are some great neighborhood options to look into:
- Ribeira: A historic, picturesque neighborhood with medieval flair. Ribeira is located along the Douro River, giving you access to property along the waterfront and stunning views of the Dom LuÃs I Bridge.
- Foz do Douro: A gem for luxury property buyers, Foz do Douro boasts sophisticated mansions and large properties for families dotted along the Atlantic coast. The chic neighborhood offers upscale restaurants and a relaxed life by the sea. This is also an excellent area for families, well placed for international schooling options, like the Oporto British School.
- Cedofeita: Still somewhat of a hidden gem, Cedofeita is an artistic, trendy neighborhood with a bohemian spirit. The area hosts elegant art galleries and is known to attract creatives.Â
Lifestyle in PortoÂ
The lifestyle in Porto is relaxed and tranquil and ideal for families looking to escape crowded cities. The city has a rich cultural scene and excellent food to rival Lisbon’s gastronomy (many locals actually regard the food in the north of Portugal as the best in the country) and has seen a thriving tech scene blossom in recent years, attracting young entrepreneurs.Â
Its proximity to nature means locals often enjoy outdoor activities, like visiting natural parks such as the Parque da Cidade, the city’s largest green space, and, of course, sunbathing on the glistening beaches.Â
Transportation in PortoÂ
Porto has an efficient metro service, other public transportation options like buses, and private transport options like Uber and Bolt, ensuring ease of travel throughout the city and beyond. The international airport in Porto also provides convenient national and international flight links.
Things to do in PortoÂ
Porto is a relaxing tourist destination with things to do to suit any preference. Of course, going Port wine tasting is a must, and wandering through the picturesque vineyards of the wineries in Northern Portugal is an activity in itself. You can always explore the colorful houses in the Ribeira district and soak up the charming atmosphere seeping out of the cobblestone streets. For a peaceful escape, you can easily access the quieter regions of Northern Portugal and visit some of the oldest cities in the country, such as Braga.
Buying Real Estate in the Algarve
The epitome of beach living would be found in the Algarve. Popular among retirees, this region boasts pristine beaches and hold-your-breath landscapes. Owning property in the Algarve is an excellent financial investment, with foreign ownership in the area on the rise. If you’re interested in investing in buying property in the Azores Islands, take a look at our buying property in Azores guide.
Advantages of buying property in the AlgarveÂ
The average property price per square meter in the Algarve is €4,385, falling somewhere between the prices that you would find in Porto and Lisbon. Prices in the Algarve region are greatly influenced by where you buy. You’ll find a range of both luxury homes and smaller properties, like a one-bedroom apartment or a semi-detached house, that will also be more affordable. Either way, a property purchase in the region will be a sound foreign investment. If you’re interested in buying a home for property rental, the average rental yield is 5.6 percent. Here are some of the advantages of living in the area:
- Authentic coastal living at its finest
- Excellent food and wine options
- Luxury beachfront homes available in upscale areas
- Affordable property options are available for buyers looking for good property valueÂ
Which part of the Algarve should I buy property?Â
Because the purchase price of property in the Algarve varies greatly, the areas you should consider in your property search will depend on the lifestyle you are seeking and your budget. Albufeira is a lively, centrally located city popular among expats, while Tavira offers a tranquil escape from the busier coastal areas. Vilamoura is your ideal location for luxury properties and upscale living, with some of the finest luxury villas in Portugal.Â
Lifestyle and things to do in the AlgarveÂ
As a coastal area, the lifestyle in the Algarve revolves around relaxing on the sandy shores, taking a cooling dip in the ocean, participating in watersports, or watching the waves lapping at the shore from your balcony. However, there are activities to suit all tastes, like cultural and music events, historical landmarks like the Benagil Cave, visiting the Ria Formosa Natural Park in between Faro and Tavira, or simply exploring charming historical cities like Tavira and Lagos.
Transportation in the AlgarveÂ
Trains and buses are reliable in the busier areas, and it is especially easy to get from Faro to Lisbon by train with the good train connections. However, you may need your own vehicle in the quieter areas, especially to get to the more secluded beaches. There are also international flights from Faro’s airport, enabling easier travel out of the country.
Buying Real Estate in Cascais
Cascais is not as popular as our other options, but it’s still loved among expats and real estate investors. The stable and profitable real estate market is where the best of coastal living and luxury meet, with high investment returns and rental yields (5.5 percent).Â
Advantages of buying property in Cascais
The average property price per square meter in Cascais is €7,260 — quite a bit higher than some of the other areas on our list. Even at higher property costs, buying a home in Cascais is still a smart move. Here are some of the unique advantages.
- A 30-minute drive from Lisbon, away from the busy areas, but still able to access them easily
- Luxury, upscale living
- Outdoor sports and activities
- Stunning beaches
- Top restaurants and fine-dining options
Lifestyle and Things to Do in CascaisÂ
Try your hand at golf at some of Portugal’s best golf courses, like Quinta da Marinha and Oitavos Dunes. Cascais is also close to the enchanting town of Sintra, a UNESCO World Heritage Site known for its fairy-tale palaces and historic castles. Other activities to enjoy include horse riding and visiting the Sintra-Cascais Natural Park.
Transport in CascaisÂ
Modern transportation, such as Uber and Bolt, is available in Cascais. Buses and taxis are also very reliable. However, having your own car would be more convenient for traveling in the more secluded areas and beaches. Â
Things to be Aware of When Buying Real Estate in Portugal
Once your property search for the best places to buy real estate in Portugal is over and you have found your dream home, the next step is to do your research and start the property acquisition process. Expect and prepare for the following when buying real estate in Portugal to ensure the process is seamless:
- You will need a Portuguese tax number (Número de Identificação Fiscal) to perform transactions like buying property in Portugal. You can get one either from your local tax office or online.
- Opening a Portuguese bank account to make your purchase will save on transaction costs, and you will also need your passport, proof of address, sales contract, stamp duty, and land registry document.
- To ensure the process goes smoothly, it is best to work with real estate professionals and have a real estate lawyer on your side. When it comes to real estate agents, it is worth bearing in mind that they work on behalf of the seller. As such, it can be a better option to work with a buyer’s agent who will work on behalf of the buyer and have their best interests at heart. A real estate lawyer will ensure the legal requirements are met and legal documents like the promissory contract, are correctly handled. They will also perform background checks on both the seller and the property.
- Ensure your property financing is in order, and research the process of getting a mortgage loan in Portugal. It is best to do this before you kickstart your property search.Â
- Be aware of the different fees and taxes associated with the property acquisition process, such as immovable property tax, property transfer tax, notary fees for the property deed, legal fees, and so on.
Selling your house in Portugal
With the guidance of a great real estate agent, it should be easy to sell property in Portugal. Of course, the demand for real estate in the location of your home, how well the property is marketed, and how accurately you follow the correct process will all affect how quickly your house will be sold.
Why work with BE Global?
BE Global Properties is the discerning property investors’ gateway to meticulously curated properties that transcend ordinary listings. Look no further when searching for your next dream home or investment property in the Portuguese luxury real estate market.Â
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 to your lifestyle.Â
Contact BE Global Properties today and start your journey to find your global haven.
Frequently Asked Questions about the Best Places to Buy Real Estate in Portugal
Where is the best place to buy a house in Portugal?Â
The best place in Portugal to buy property will largely depend on your lifestyle and preferences, as well as on how much you are willing to spend. If you are looking for areas close to Portugal’s beautiful beaches, a coastal area like the Algarve might be best for you. If you prefer more modern and bustling cities with traditional culture and charm, Lisbon and Porto might be the better choice. It is best to research the different areas thoroughly to decide where to buy property in Portugal.
Should I buy property in Lisbon or Porto?Â
While the two cities are both great options, deciding which is the best place to invest in Portugal takes some research. Lisbon is Portugal’s capital and offers a diverse culture and lucrative business opportunities. On the other hand, Porto tends to embrace a more laid-back lifestyle, has a growing tech scene, and the property market is on the rise. Research the lifestyle, job prospects, and property prices to decide which city better matches your preferences and budget.
What factors should I consider when choosing a location for real estate investment in Portugal?Â
Factors to consider for Portugal real estate investment include:
- The location’s current real estate market and any potential growth trends
- The current state of the local economy, amenities, and infrastructure
- The lifestyle and tourism trends in the area
- The crime rates
- Rental demand and yieldsÂ
- Any development plans the area may have
Are there any up-and-coming areas in Portugal for real estate investment?Â
The up-and-coming areas in Portugal can change from time to time depending on factors like the economy, the tourism sector, and development in the area. Here are some places to keep your eye on for investment purposes:
- Matosinhos, close to Porto
- Campanhã in Porto City
- Marvila in Lisbon
- The Alentejo region
- Peniche and Setúbal, both close to Lisbon
- Vila Nova de Gaia, along the southern banks of the Douro River
- Interior areas, such as Guarda
What are the legal and financial considerations for buying real estate in Portugal as a foreigner?Â
Foreigners face no restrictions when buying property in Portugal and are free to do so by following a straightforward process. The process includes getting a fiscal number, opening a Portuguese bank account, and following the legal buying procedure.Â
Aside from the total purchase cost, make sure to budget for property taxes, mortgage broker fees, notary fees, and real estate lawyer fees.Â
Is it easy to sell your property?Â
Yes, to sell property in Portugal, you will follow quite a straightforward process that usually takes two to four months with the help of real estate professionals, depending on the demand for property in the area and whether there are any additional requirements.
