The Portuguese have a historical connection with the ocean and value having a house on the coast, either to live by the sea all year round or as somewhere to escape to on holidays or weekends, often earning extra income by renting out their holiday homes to tourists. And many foreigners are also arriving from abroad in search of a home on the Portuguese coast. But buying a house by the Portuguese coast is becoming increasingly expensive, with prices having risen in most municipalities in 2023.
And the high cost of property, coupled with the loss of purchasing power due to inflation and high interest rates on mortgage loans, is cooling the demand for homes to buy near the beach, leading to an increase in supply in most municipalities. In the rental sector, demand remains strong, absorbing the houses available on the market and pushing up rents. Want to know more? Dive into the data analysed by idealista/news to find out which municipalities on the Portuguese coast are the most expensive and cheapest to buy and rent a house in.
Buying a house on the Portuguese coast: which municipalities are the most expensive and cheapest?
Anyone considering buying a house near the sea or a large estuary, whether to live or spend their holidays, is going to be faced with a reality: unit prices have risen in 81 of Portugal's 84 municipalities. It was in Albergaria-a-Velha, in the Aveiro district, where houses became more expensive between the second quarter of 2023 and the same period last year (+43%). Also in São Vicente and Ribeira Brava (both on the island of Madeira), Murtosa (Aveiro) and Óbidos (Leiria), the prices of houses for sale have risen by around 40% in just one year.
There were only three municipalities by the sea where houses for sale became cheaper during this period: Estarreja, in Aveiro (-13%), Esposende, in Braga (-9%) and Sesimbra, in Setúbal (-2%), show the data from idealista/data.
But in which municipalities is it cheaper to buy a house near the beach? According to the same statistics, there are only seven municipalities where the median price of houses for sale by the sea is less than 1,100€/m2 - and only three of these are in mainland Portugal:
- Nordeste (island of São Miguel, Azores): buying a house cost, in median terms, 879€/m2 in the second quarter of 2023;
- Estarreja (Aveiro):937€/m2;
- Marinha Grande (Leiria): 1,009€/m2;
- Angra do Heroísmo (Terceira island, Azores): 1,022€/m2;
- Praia da Vitória (Terceira island, Azores): 1,061€/m2;
- Cantanhede (Coimbra): 1,067€/m2;
- Povoação (island of São Miguel, Azores): 1,083€/m2.
At the opposite end of the spectrum is the municipality of Lisbon - bathed by the River Tagus and just a few kilometres from the beach in several directions - where buying a house cost an average of 5,351€/m2 between April and June 2023 (+7% year-on-year). Just behind is Grândola (in the Setúbal district), where buying a house cost 4,706€/m2. The top five of the most expensive coastal municipalities to buy a house is completed by Cascais (4,627€/m2), Oeiras (3,967€/m2) and Loulé (3,842€/m2).
Buying a house in the coastal municipalities of Portugal
Demand for beach houses falls in 64 municipalities - supply rises in 52
It's no news that houses are becoming more expensive on the coast, especially near the big urban centres of Lisbon, Porto and the Algarve. But the current context, marked by inflation and high interest rates on home loans, has greatly influenced the demand for housing for sale in the country, cooling it down. And this is clearly visible in the data from idealista/data: demand for houses to buy near the beach fell in 64 coastal municipalities in just one year (76% of the total). The biggest drops were seen in Ponta do Sol, on the island of Madeira (-57%), Santiago do Cacém, in Setúbal (-52%) and Murtosa, Aveiro (-50%).
On the other hand, there was also an increase in demand in 20 coastal municipalities -including Lisbon (+11%) - eleven of which are located on the islands of Madeira and the Azores.
As a result of the cooling demand, the supply of houses for sale near the beach rose in 52 of the 84 municipalities analysed. In Odemira, the number of homes available to buy doubled between the second quarter of 2023 and the same period in 2022. In Santiago do Cacém it increased by 70%, in the municipality of Ribeira Brava (Madeira Island) by 57% and in Mafra by 51%.
In Figueira da Foz, the offer remained unchanged between the two periods. And in 31 coastal municipalities there are now fewer houses for sale than there were a year ago. It was on the island of Porto Santo, in Machico (Madeira island), in Vila Franca do Campo (São Miguel island, Azores) and in Sines where the supply of houses to buy fell the most (between -23% and -38%).
Renting a house near the beach in Portugal: how much does it cost?
At a time when buying a house near the Portuguese coast is more expensive and interest rates on mortgage loans are on the rise, there are also those who are considering renting a house to enjoy life near the beach and the sea. But there's no good news in this market either: house rents rose in all 31 municipalities with representative samples, with Lisbon (38%), Moita (36%), Porto (34%), Cascais (32%) and Viana do Castelo (31%) leading the increases. The smallest rise in median rents was recorded in Loulé (+5%).
Although house rents continue to rise, it is possible to find houses for rent near the sea with median prices of less than 10€/m2. These are the municipalities on the Portuguese coast where it will be cheapest to rent a house in the second quarter of 2023, according to data from idealista/data:
- Viana do Castelo and Leiria: the median house rent was 7.9€/m2 in both municipalities;
- Torres Vedras:8.5€/m2;
- Palmela:9.3€/m2;
- Montijo and Moita (both in the Setúbal district): 9.7€/m2.
Unsurprisingly, the most expensive place to rent a house near the coast is Lisbon, with a median cost of 20€/m2. Cascais (18.8€/m2), Loulé (15.5€/m2), Porto (15.3€/m2) and Oeiras (15.2€/m2) come next, according to the data.
Renting a house on the Portuguese coast: how much does it cost?
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