5 Top Tips for Finding Affordable Property in Portugal

Published on Tuesday, January 22nd, 2008
Property Abroad » Property in Portugal

Summary: There are a number of ways that you can find an affordable home in the hot property market in Portugal

According to 2007 statistics from the Instituto Nacional de Estatistica, which is the National Statistics Institute in Portugal, property prices in the nation had risen by as much as 17% over the five years to date. That marks significant yet sustainable progress and bodes well for the ongoing development of the Portuguese real estate market – however, it doesn’t bode so well for anyone hoping to find affordable homes in Portugal, especially in the most popular regions such as in the Algarve or in cities such as Lisbon or Porto.

In this article we’ll give you 5 top tips for finding affordable property in Portugal because there are ways to find a dream home that you can purchase without having to break the bank! The secrets lie in location and negotiation and mean that if you really have your heart set on buying property abroad in Portugal for vacation, retirement or investment, you can make your dreams come true.

1)Look for up and coming areas - yes the Algarve is a beautiful part of Portugal – but it is also the most expensive region bar none in which to buy a home. If you move slightly away from the region and explore the Silver Coast for example, you will find far more affordable property options. The further north away from the Algarve you venture, so the more affordable homes become. In part this is because the Algarve is one of the most simple areas to access and in part this is because the climate in the region is the best in Portugal...but in reality, you can still move away from the airports and find an exceptional climate and some great real estate that remains accessible if you just look outside the famous areas for a home.

2)Move back from the sea front - front line property in Portugal is the most expensive option. The closer you are to the sea and the beach the more you will pay per square metre...so, if you move back from the coast you will save yourself significant amounts of money per property. If you want to ensure you still have sea views, look for properties in an elevated situation – either hillside homes or properties set up in the mountains for example. You can still enjoy the views and the great climate, but if you’re back from the beach front you will also enjoy the fact you get more for your money in terms of bricks and mortar – and an added bonus is that you will pay less in repairs annually as a result of sea and salt damage!

3)Look for resales in need of upgrading - whilst it has long been fashionable to buy farmhouses in rural Italy and renovate them and even to buy up fincas in Spain and transform them – the emphasis in Portugal has always been on buying new build homes. Why? Why, when you can get some stunning traditional property for such low, low prices? Look to the local market to provide you with your dream home in Portugal and then examine what you can do in the way of remodelling and renovation. Don’t forget, if you take this route get in expert help from an architect and make sure you will get planning permission and find the labour you need locally to make your plan come to fruition.

4)Look for developments that are almost complete - if you do prefer new build, look around on the ground and find property developments that are coming to completion. You may find that the show house or apartment is now for sale and offering you a bargain, or you may discover a couple of sales have fallen through and you can negotiate a discount with the developer for taking the unsold unit of their hands.

5)Consider buying property at auction - sometimes properties go to auction in Portugal. This can be if the bank has foreclosed in which case you can get incredibly reduced prices being accepted, or it can be because the vendor chooses the auction approach. Either way auctions can be a great way to pick up affordable property in Portugal. But please, please take expert advice before buying at auction as the process is quite tricky. Speak to a lawyer before you proceed.

As you can see, there are ways you can find an affordable Portuguese home so don’t be put off by increasing prices – make your dream happen!

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