Portugal is one of the prime destinations for UK citizens looking to buy a property abroad and it’s easy to see why. The property market in Portugal includes chic city centre apartments and plush renovated farm houses. It takes in modern holiday homes by the sea and sleepy stone cottages in quaint country villages. And then, of course, there’s the warm climate, spectacular scenery and low cost of living.
So what’s the best region to buy property in Portugal? That depends on what type of property – and what type of lifestyle – you’re looking for.
- Portuguese beaches are among the best in Europe. Coastal properties are plentiful, affordable and often beautifully located.
- Portuguese cities like Porto and Lisbon are vibrant, handsome and offer spectacular views and rich history and culture.
- Inland Portugal offers a slower pace of life and highly affordable property even in sought-after towns and villages.
- Don’t forget, Portugal is something of a golfer’s paradise, with some incredible coastal courses.
- Portugal is also popular with those looking to buy property to rent out. Homes on the coast, in particular, make ideal holiday rentals.
- Remember, you’ll need an easy and cost-effective way to send money to Portugal if you choose to buy property and/or live in the country. Lumon can help.
We’ve already covered the process of buying property in Portugal. In this guide, we’ll look more closely at where to buy property in Portugal, covering some of its most popular regions.
Of course, your own “best” region will depend on what you want from your property and from life. Whatever your reason for buying a house in Portugal, this guide should give you plenty of food for thought.
Top regions in Portugal for overseas buyers
Lagos: beach life and cafe culture
The Algarve is considered by many as the best place to buy a property in Portugal, and the charming town of Lagos is at the heart of this popular region. Lagos’ cobbled streets and cafe culture are minutes away from some of Portugal’s best beaches, and Faro International Airport is within easy reach.
Who’s it for?
If you love sandy beaches and sunshine you’ll love Lagos, but this delightful town offers much more besides. Lagos is a working town and its cobbled streets and quaint squares bustle with life all year round. Property types range from old stone houses to more modern waterfront apartments. For those considering property investment in Portugal, Lagos offers high rents and a stable market.
Average property prices
Average property prices in the Algarve generally were €2,746 per square metre in 2024.1 Lagos is one of the more expensive areas of the Algarve.
Any drawbacks?
Lagos is relatively expensive compared to the property market in Portugal more generally, though the country remains affordable by EU standards. The town can get busy in summer.
Portimao: City living and year round amenities
Portimao is a port city in the Algarve, with all the on-your-doorstep amenities of a busy urban hub. You’re unlikely to be too far from a supermarket or shopping centre, and the ex-pat community is well established. Stunning beaches are minutes away.
Who’s it for?
Portimao is quite built up, but with development comes year-round amenities. Good health services, schools and shops are on your doorstep and transport links are excellent. Property types range from modern apartments and villas in the city to simple stone dwellings in neighbouring villages.
Average property prices
Average property prices in the wider Algarve region were €2,746 per square metre in 20242 and Portimao is considered affordable considering the amenities and lifestyle on offer.
Any drawbacks?
It’s a seaside city, which means you can expect crowds and traffic in the summer. It’s not perhaps the best place to buy a property in Portugal for those looking for a quiet life.
Albufeira: Beaches, golf and good times
Albufeira is perhaps the best known holiday destination in the Algarve, which means an abundance of beaches, nightspots, restaurants and golf. Albufeira boasts three 18-hole golf courses and a central strip of bars and restaurants that meanders for two kilometres along the seafront. With plenty of competition, the cost of eating out and entertainment is low.
Who’s it for?
Albufeira isn’t only about sunny beach days and fun-filled nights. The historic old town is a great place to sit and people watch, and the wider region is also renowned for its spas and wellness centres. Its popularity means that rental yields are good, whether you’re investing in a central apartment or a larger home further inland.
Average property prices
Average property prices in the wider Algarve region were €2,746 per square metre in 2024.3 Having said that, Albufeira is one of the most affordable destinations in the entire Algarve.
Any drawbacks?
There’s no escaping the fact that Albufeira is a holiday town. Crowds flock to the area in summer but it becomes much more tranquil in winter, without ever feeling lifeless.
Faro: Relaxed urban living and spectacular scenery
Faro is the administrative capital of the Algarve, and perhaps its best preserved city. It offers a quieter and more authentically Portuguese experience than some of the busier resorts in the area, with an attractive old town, historic walled centre and attractive marina. Faro International Airport is the main international transport hub of the region.
Who’s it for?
Faro is considered one of Portugal’s most liveable cities, with a slower pace of life than the Algarve’s purpose-built holiday towns and a sizable local population that ensure amenities are available all year round. The delightful Ria Formosa natural park is right on its doorstep. Property types range from seafront apartments to characterful family homes.
Average property prices
Average property prices in the wider Algarve region were €2,746 per square metre in 2024.4 Faro is considered up and coming as an expat destination, and there’s still good value in the market.
Any drawbacks?
Faro is charming all year round but you will have to accept a large influx of tourists in the summer. It is a small city, so the usual advantages and frustrations of urban living apply.
Amancil: Small town life with a hint of luxury
Amancil is considered the gateway to the Algarve’s Golden Triangle, the most expensive and luxurious part of the region. Amancil itself is an inland town within easy reach of the Algarve’s beaches, golf courses and natural attractions. As an administrative and commercial hub, it combines a wide range of amenities with a distinctly Portuguese feel.
Who’s it for?
Amancil isn’t cheap, and nor is it on the coast. With that in mind, it tends to attract expats who want a quieter life away from the region’s bustling seaside resorts, but with plenty of high-end amenities. All of the Algarve’s attractions are within reach, but the town itself maintains its Portuguese character. Property includes modern apartments, family villas and renovated townhouses.
Average property prices
While average property prices in the wider Algarve region were €2,746 per square metre in 2024,5 Amancil is considered expensive by Portuguese standards and you may pay significantly more in desirable neighbourhoods.
Any drawbacks?
Property costs are the main challenge. The cost of living can also be high but can be reduced if you learn to live like a local. Amancil is near the coast but not on it, so don’t expect sea views.
The Golden Triangle: laidback luxury
The Algarve’s Golden Triangle is renowned for offering the luxuries of life, with world-class resorts, a multitude of high-end dining options and spectacular sea views. Many consider it the best place to buy property in Portugal, but the high quality of life does come at a price.
Who’s it for?
Families and retirees make the Golden Triangle home, attracted by a vibrant social scene, a safe and serene lifestyle and high-end services. Golden beaches and unspoilt areas of natural beauty only add to the appeal. The prestigious property market offers well-appointed villas and chic apartments in desirable coastal locations.
Average property prices
While average property prices in the wider Algarve region were €2,746 per square metre in 2024,6 the Golden Triangle is the most expensive part of the region and you can expect to pay significantly more. On the plus side, limited land availability and strict planning rules mean property tends to hold or increase its value.
Any drawbacks?
It’s a wealthy playground, with numerous gated communities and private roads. If you’re not at home in that kind of environment, you might find the Golden Triangle offputting.
Porto: a slower pace of city living
If your idea of the best place to buy a property in Portugal is one of its major cities, Porto may be the location you’re looking for. As a city, it has a rich culture and history and a vibrant arts scene. Amenities are excellent, and Porto remains considerably more affordable than many other major European cities despite its growing popularity as an expat destination. The property market – from one bedroom apartments to family townhouses and sprawling villas – is diverse and thriving.
Who’s it for?
Porto offers bohemian city living in elegant and historic surroundings, alongside a high quality of life. Winters are mild and summers are warm, and the locals are friendly and welcoming. In the centre, ancient cobbled streets and colourful architecture speak of its past, while coworking hubs and a growing tech start-up scene show Porto’s progressive ambitions.
Average property prices
Average property prices in the wider Porto metropolitan region were €2,043 per square metre in 20247. Districts like Ribeira and Miragaia are central but pricey, while more distant suburbs, like the Atlantic-facing Foz do Douro, offer more bricks for your buck.
Any drawbacks?
Porto is remarkably laid back for a big city but a certain amount of noise, bustle and traffic come with the territory. While affordable by European standards, property is still more expensive than the Portuguese average.
Understanding the Portuguese property market
In all the regions we’ve featured you’ll find diverse property types, from townhouses and villas to apartments and holiday homes. The good news is that, whether you’re buying a house in Portugal for holidays, relocation or investment, the property market in Portugal remains in robust health. In fact, at time of writing, property valuations have been rising for 21 consecutive months.8
As with anywhere, prices vary significantly between regions and even within regions. The closer you are to city centres, tourist hotspots and the coast, the more you may have to pay. This is reflected in wider Portuguese property prices, which are most expensive in central Lisbon and the Algarve and cheapest in rural central Portugal.9
Nevertheless, houses for sale in Portugal tend to be less expensive than counterparts in other European hotspots, and the cost of living is relatively low. Expat property in Portugal remains highly desirable, whether you’re buying on a budget or looking for a slice of the good life. The best region to buy property in Portugal depends on your tastes and goals, but what we can say with confidence is that in this land of serenity and sunshine you are very likely to find what you are looking for.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Lumon or its subsidiaries, and it is not intended as a substitute for obtaining advice from the relevant professional services. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
1 Instituto Nacional De Estatística
2 Instituto Nacional De Estatística
3 Instituto Nacional De Estatística
4 Instituto Nacional De Estatística
5 Instituto Nacional De Estatística
6 Instituto Nacional De Estatística
7 Instituto Nacional De Estatística
8 Instituto Nacional De Estatística
9 Instituto Nacional De Estatística
