Having a property by the beach is, increasingly, the decision of those who decide to buy a property in Portugal, both for Portuguese families and foreign investors. This is a market that has remained dynamic even during the pandemic, driven by the need for more space and comfort, as well as remote working. Demand for property for sale on the Portuguese coast has grown in 45 of the 54 municipalities located on the Portuguese coast, causing the supply of homes in most areas to fall and house prices to soar. And the same scenario can be seen in the rental market for property for rent on the Portuguese coast. But where is the cheapest property for sale on the Portuguese coast? And for rent? We explain everything
Property by the sea in Portugal: price rises
Looking at the 54 municipalities that make up the Portuguese coast, it turns out that properties for sale became more expensive in 48 locations between May 2021 and May 2022. It was in Sines, on the Alentejo coast, which saw the largest increase in house prices by the sea (+71%), with a property costing an average of 465,284 euros in May, according to idealista/data. Rounding off the top 3 areas with the largest price increases are Grândola, in the Alentejo, (+53.8%) and Lagos, in the Algarve (+44.1%).
Luxury beachfront property in Portugal
Where is it most expensive to buy a house on the Portuguese coast? The most expensive coastal properties in Portugal are found in Cascais, with average prices standing at 892,485 euros in May 2022. Just behind is Grândola (872,644 euros) and Loulé (721,628 euros).
Cheap coastal property for sale in Portugal
When it comes to cheap coastal property for sale in Portugal, the municipalities on the Portuguese coast where it is cheapest to buy a house near the beach and their average property prices are:
- Porto de Mós (119,056 euros)
- Marinha Grande (157,315 euros)
- Cantanhede (161,198 euros)
- Figueira da Foz (179,599 euros)
- Santiago do Cacém (194,703 euros)
Average property prices on the Portuguese coast
Observing the price of the square metre (m2) of properties on the Portuguese coast, data shows that this value has increased in all municipalities, especially Alcácer do Sal (+76.9%), Sines (50.3%) and Aljezur (+33.5%). The least sharp rises in average unit prices were recorded in Porto de Mós (+0.7%) and in Murtosa and Vagos (both recorded +2.5%), the data show.
It is in Lisbon where the price of homes per square metre is highest, reaching, on average, 5,048 euros. Next is Cascais (4,069 euros/m2), Grândola (3,785 euros/m2), Loulé (3,339 euros/m2) and Lagos (3,292 euros/m2).
The ranking of coastal municipalities where house prices per m2 are cheaper is led by Porto de Mós (657 euros/m2), followed by Cantanhede (884 euros/m2), Oliveira de Azeméis (941 euros/m2), Marinha Grande (957 euros/m2) and Murtosa (1,102 euros/m2).
Note that the demand for houses by the sea was also up, rising in 45 municipalities of the Portuguese coast, especially Murtosa (+114.7%), Loulé (94.2%) and Portimão (+90.9%). Among the largest decreases in demand recorded between May 2021 and May 2022 is Esposende (-31.9%), Grândola (-24.9%) and Alcácer do Sal (-18.1%).
The high demand for beach houses to buy has caused supply to fall in 50 municipalities out of the 54 analysed. The biggest falls were recorded in Loulé (-43.1%), Portimão (-43%) and Oeiras (-42.3%). The only municipalities that saw the supply of houses on the coast rise were Esposende (+27.7%), Sines (+18.2%), Ovar (+1.1%) and Alcácer do Sal (+0.7%).
Property for rent in Portugal by the beach: prices rise in 42 municipalities
The rental market considered 52 municipalities on the Portuguese coast, since the sample was not representative in Mira and Murtosa. Of these 52 areas, the prices of property for rent (long-term rentals) have risen in the great majority - 42 municipalities. The long-term rental prices on the Portuguese coast that experienced the biggest jump between May 2022 and the same month last year were recorded in Odemira (+67.0%), followed by Lagos (+66.0%) and Nazaré (+54.6%). On the other hand, rent for property on the Portuguese coast fell 50.4% in Grândola, 17.1% in Sesimbra and 15.3% in Caminha, the data reveals.
How much is rent on the Portuguese coast?
The most expensive properties to rent near the sea in Portugal are in Cascais, where the average rent stood at 1,718 euros/month in May 2022. Just behind is Loulé (1,554 euros/month) and Lagos (1,521 euros/m2). More affordable long-term rentals on the Portuguese coast are found in Cantanhede (445 euros/month) and Marinha Grande (497 euros/month).
When looking at the price per m2 of property to rent on the Portuguese coast, values are also more expensive in 42 municipalities, with Porto de Mós (+82.6%), Vila do Bispo (+60.4%) and Óbidos (+45.3%) standing out. On the other hand, the unit prices of houses in the rental market saw drops in Aljezur (-25.5%) and Oliveira de Azeméis (-9.1%).
What about the most expensive rent per m2 in Portugal? This can be found in Lisbon (14,6 euros/m2/month), Cascais (14,0 euros/m2/month) and Vila do Bispo (13,3 euros/m2/month). On the other hand, it is in Oliveira de Azeméis and in Vagos where the cheapest rent on the Portuguese coast is found, costing 4,1 euros/m2/month in both municipalities. Santa Maria da Feira and Marinha Grande also have affordable rent, average monthly rent standing at 5,3 euros/m2 in both municipalities.
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