Portugal may not have the dramatic peak-and-trough market history of its neighbor Spain, but there are always affordable properties to be found if you know where to look.
Foreign demand has been steadily increasing across the country – but in Lisbon and across the Algarve in particular – and the government’s “golden visa” and tax incentives have been very successful at attracting interest in this low-key and laid-back country that is free from security issues.
Golfing continues to be a big draw too, with the Algarve recently celebrating 50 years of the sport, whilst the western part of it – along with the Silver Coast - is famed for its surfing beaches.
Property prices are still down from their 2007 peak on the coast so now is a great time to buy there, whilst its two major cities are undergoing exciting regeneration.
Bargains in the Algarve
Most British buyers seeking to take advantage of the laid-back Portuguese lifestyle, the Mediterranean climate and beautiful beaches will head to the Algarve. Less developed and less glitzy than the Costa del Sol it remains in large parts charmingly authentic with a lifestyle that is safe, secure and also surprisingly affordable.
But where to choose? Most of it is now within an easy hour’s drive of Faro, much of the central part less than half an hour. For golf courses the central Algarve offers the best choice, whilst some would argue the best beaches are west around Lagos. Meanwhile the eastern tranche feels the most rustic and has traditionally offered the best value homes.
Show me a bargain
If you want to be close to the upmarket resorts and golf courses of the central Algarve, the key is to buy close to the so-called “Golden Triangle” but avoid the locations that come with a premium. So you can get – around Loule - a three-bed, three-bath detached property for around €300,000 – less than the cost of a small apartment in nearby Quinta do Lago resort.
Or maybe you want a lock-up-and-leave pad close to the sea? In Quarteira you can get a three-bed apartment for €150,000 in the old quarter that needs a little TLC but would no doubt attract rentals after a facelift.
Those seeking something a little more rural, you can get a four-bed farmhouse in Paderne just behind the A22 highway along the Algarve for less than €200,000 – your money will usually go further as you head inland. Heading west a little, the Silves/Algoz area offers plenty of choice if you want a comfortable three-bed home for less than €300,000.
The western side of the Algarve feels different yet again, but avoid central Lagos where prices have risen in recent years if you are on a tight budget. However you can still get a two-bed apartment behind the wonderful Meia Praia beach on the outskirts of the town, for €220,000.
In the past couple of years the rough-edged charm of the eastern Algarve is being discovered and look to the lovely beach village of Cabanas de Tavira where you can buy one-bed apartments for less than €100,000 – or three-bedders with change from €200,000.
Top tip
If you are looking to buy on one of the many developments with shared facilities such as golf courses, fancy pools and sports facilities bear in mind that you get what you pay for. Will you use all of them? If not, consider buying on a community with smaller grounds or fewer pools to maintain.
Bargains on the Silver Coast
The Silver Coast is north of Lisbon on the Atlantic and famed for around 150km of unspoilt landscapes of craggy headlands, fabulous beaches, some of Europe’s best surfing and also some striking contemporary architecture. It’s reached via Lisbon airport - an hour or two by car, depending on where you go, although the northern stretch is easier from Porto airport, which is also served by low-cost airlines.
The former fishing village of Ericeira at the Lisbon end is now a fashionable spot to catch the biggest waves, while the Obidos area further north has long been a sought-after location, along with the Praia del Rey golf resort. If historical fishing villages or towns are more your style, then choose between Leiria with its Moorish castle, the charming fishing village of Peniche, or the seaside town of Nazare.
Show me a bargain
This region tends to be more affordable than most of the Algarve. Whilst prices will be higher in the more fashionable spots around Obidos and Nazare, check out the town of Caldas da Rainha that ticks many boxes for a laid-back get buzzy summer playground (and it’s only around an hour from Lisbon).
You can get plenty of options with a budget of €100,000 from rustic two/three bed houses or renovated apartments. A nice villa costs around €300, 000.
Top tip
Consider public transport links when choosing a location if you want to rent out your property. Rail links along the Silver Coast are notoriously slow, and buses from Lisbon (and its airport) are much better but how regularly do they run to the town? More than twice a day is useful.
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