Portugal has been outside of the radar as one of the most popular destinations for Americans, at least for the past decades. It was once known as the “poor man’s Spain” due to its cheap prices and warm climate.
Today, it is still considered an affordable destination for those seeking a European holiday, but also for someone looking to invest abroad.
In recent years, however, the country has seen a surge in real estate investment. This has led to a rise in property values and a decrease in inventory.
This means that buying a house in Portugal is becoming increasingly difficult.
So, here are the five things I’ve learned after researching online for Portugal houses for sale.
#1. There are still plenty of properties available for purchase in Portugal.
There are currently thousands of properties listed for sale in Portugal. And that number did increase when compared to last year, even if the market experts were already estimating a contraction.
However, the average price of these properties is increasing in double digits.
#2. Prices vary greatly depending on location.
Prices range from €50,000 ($60,000) for a very small apartment in Coimbra to over €6 million ($7 million) for a luxury villa in Porto. This wide difference in prices is mainly related to location or to how touristy that area is.
For example, the coast lines of Algarve, as well as other coastlines like the Silver coast, plus the islands of Madeira and Azores Islands are among some of the expensive places to buy a house in Portugal, even thought that they are far from the biggest cities, Lisbon and Porto, which are also the most expensive places.
#3. Properties are often sold within days of listing.
Many sellers list their properties online, hoping to attract buyers quickly.
They may even offer incentives to potential buyers such as cash back or free furniture.
Most properties are sold within 24 hours of listing.
#4. Buyers should expect to pay a premium for a property in Portugal.
Buyers should expect to pay anywhere from 10%-30% above the asking price. That is normal in other markets, but in Portugal it is more noticeable.
Whenever there is a high demand for housing, this will be reflected in higher prices.
#5. Many properties are owned by foreigners.
Foreign investors are responsible for purchasing nearly half of all properties in the biggest cities like Lisbon and Porto.
These owners tend to be wealthy individuals who invest in multiple properties across Europe, or are looking for ways to expand their portfolio. Others are looking to be eligible for the golden visa scheme.
As a result, they are willing to spend big money on a property in order to secure a return on their investment.
When searching for a property in Portugal, you should focus on areas near major cities such as Lisbon, Porto, Coimbra, and Faro.
These locations are well connected to international airports and other transportation systems and have a wide variety of amenities.