Real Estate
The opportunity to own a property in one of the world's oldest nations, where the weather is always pleasant and you're never far from the sea, is truly remarkable. Here you will find all the information you need to make an informed decision about moving to, or investing in, one of the most socially and culturally fascinating, low-cost European countries, all while being secure, conveniently accessible, and boasting a generally good quality of life.
2556
residency permits were granted to foreigners in Portugal in the first quarter of 2022
11%
of the houses sold in Portugal in 2021 were acquired by foreign buyers
6.4%
of the houses sold in the second quarter of 2022 were bought by non-residents
80 +
different nationalities purchased a property in Lisbon in 2021
$7,785
Average price per square meter in Lisbon's Downtown
$4,541
Average Price per Square Meter in Porto's Downtown
$2,557
Average Price per Square Meter in Portimão, Algarve
$5,655
Average Price per Square Meter in Cascais' Downtown
Types of Real Estate
Residential
The cost of renting or buying a home will vary greatly across Portugal's several regions - it's considered more expensive to rent in big cities like Lisbon and Porto, whereas more remote areas can be a bit more affordable. In many ways, Portuguese housing is not unlike to that seen elsewhere in Europe. Still, there are a few variations. Portugal has the greatest percentage of rural residents in Western Europe, with about one-third of the country's families settling in rural regions on farms or other non-urban holdings. Another distinguishing feature is that suburbanites make up the vast majority of city dwellers. In fact, both Lisbon and Porto's metropolitan districts are home to over 2 million people. In such neighbourhoods, families typically reside in apartment buildings where they share common amenities such as a kitchen, living room, and a couple of bathrooms.
The residential market began its revival in 2014, with the refurbishment of several structures, mostly in the downtown areas of Lisbon and Porto, after plunging during the global financial crisis (GFC) and the economic catastrophe that followed in Portugal. Developers and investors were enticed by the introduction of new laws and taxes, such as the Urban Lease Law Reform and the Urban Renovation Regime (which established the lowering of the VAT rate from 23% to 6%). A fresh wave of demand from overseas buyers was sparked simultaneously by two policies aimed at different regions of the world (Europe and elsewhere): the Non-Habitual Residents Tax Regime and the Residence Permit for Investment Activity ("Golden Visa"). In just over a decade, we've seen a doubling in the number of homes acquired by foreign buyers. Among the most prominent purchasers are the French, the British, the Americans and the Brazilians.
Small-scale repair projects were the impetus for the rebirth of the residential development sector, but now, all over the nation, greenfield bigger initiatives are being created. There is a large unmet demand for housing despite the fact that the number of newly built homes has increased by double digits annually for the previous four years. On average, 76,250 homes were built in the first decade of the century, but only 13,250 were finished in the second.
