Portugal’s real estate market has been booming in recent years, with an increasing number of foreigners buying properties in the country. The reasons for this trend are numerous and varied, but some of the main factors include the mild climate, the low cost of living, and the easy process of buying property in Portugal.

Climate

One of the major reasons that foreigners are attracted to Portugal is the mild climate. Portugal is known for its sunny days and warm temperatures, making it a great destination for those looking to escape the cold and dreary winters of their home countries. The Algarve region, in particular, is a popular destination for retirees and holiday home buyers looking for a warm and sunny climate.

Low cost of living

Another major draw for foreigners buying property in Portugal is the low cost of living. Portugal is one of the most affordable countries in Western Europe, with low prices for food, housing, and other necessities. This makes it an attractive destination for those looking to stretch their retirement savings or invest in a holiday home.

One person spends around 200€ monthly with basics on food and groceries.

Easy process of buying property

The process of buying property in Portugal is relatively simple and straightforward. The government has made it easy for foreigners to buy property in the country, with no restrictions on foreign ownership. This has led to a large number of investors and retirees from other countries buying property in Portugal.

Economic stability

Portugal has been through a period of economic stability, which has made the country a more attractive place to invest. The country has been able to reduce its budget deficit and public debt, and it has also been able to attract foreign investment.

Golden Visa Program

Portugal’s Golden Visa program is another reason why foreigners are buying properties in the country. The program grants residence permits to non-EU nationals who invest in Portugal, which allows them to live and work in the country. The program has been particularly popular among Chinese, Brazilian, Britain and American buyers.

Tourism

Portugal’s real estate market is also driven by tourism. The country has a lot of tourists every year, which creates a high demand for holiday homes, especially in the Algarve region. Portugal’s beaches, culture and gastronomy are some of the reasons why it’s such a popular destination

What are the most popular regions to buy a house in Portugal?

Algarve

One of the most searched regions for foreigners buying property in Portugal is the Algarve. This southern region of Portugal is known for its beautiful beaches, warm climate, and laid-back lifestyle. The Algarve is a popular destination for retirees and holiday home buyers, as well as those looking for investment properties.

Lisbon and surroudings

Another popular region for foreign buyers is the Lisbon area. Lisbon is the capital of Portugal and offers a vibrant cultural scene, great food, and a rich history. The city is also home to a number of international schools, making it an attractive option for families. The surrounding areas of Sintra, Cascais and Estoril are also popular for their proximity to the city and beaches.

How much is the average price per square meter in Portugal?

Ask yourself: It’s Old or Brand New? The average price of a property in Portugal varies depending on the region and type of property. According to the National Statistics Institute, the average price of a house in Portugal in 2020 was €1,085/sqm. In 2023 the expectation is up to €1600 per square meter, for new constructions. But the good news is for renovation sector, old houses to renew in more far areas, this price can ge way lower to €600. Check this article, we tell more about it. However, prices can vary significantly depending on the location. For example, properties in the Algarve tend to be more expensive than those in the north of the country.

One of the most attractive factors of the Portuguese real estate market for foreigners is the cost of living. Portugal is known for its relatively low cost of living, making it an attractive option for those on a budget. Additionally, the country’s Golden Visa program, which grants residency to non-EU citizens who invest in property, has also made it a popular destination for foreign buyers.

The Portuguese real estate market also offers a wide range of properties, from traditional villas and houses to modern apartments and luxury properties. The market is also relatively stable, with prices generally increasing over time.

Why do you have also to invest in Portugal?

Overall, Portugal’s real estate market offers a number of attractive options for foreign buyers, including beautiful locations, a low cost of living, and a range of property types. Whether you are looking for a holiday home, an investment property, or a permanent residence, Portugal has something to offer.