With house prices currently rising in the property market, buyers and investors are looking for cheaper alternatives to purchasing used houses or flats in Portugal. One great way to reduce costs is buying an off-plan property, which are an average of 15% cheaper than buying a second-hand home.
What is an off-plan property?
‘Off-plan’ simply means a property that hasn’t been built yet. This is a particularly popular option among property investors and speculators as it is a way of purchasing a house or apartment before building has even started, but after the planning permission is granted and the building plans are drawn up.
In Portugal, you normally pay a 20% deposit upfront and don’t pay the rest until the house is finished and handed over to you, which gives you plenty of time to save up the rest of the cash.
What are the advantages of buying off-plan?
As well as being cheaper than used properties and new constructions which are already built, there are several other benefits to buying a property off-plan in Portugal:
- Some property developers will even allow you a good deal of flexibility when it comes to choosing building materials, the layout of the house and other integral features.
- You may even be able to pay less than 20% initial deposit on the property, depending on the developer.
- Being freshly-built, they are more energy efficient and have lower running costs than other buildings.
- The standard waiting time for construction to be completed is 12-24 months, which is long enough to give you time to save up to afford the place, but not so long that you’ll get antsy waiting for it.
- This is a great option if you’re looking to buy as an investment. From the time you sign the contract pre-construction to the moment that it’s finished and you come to sell it on, house prices will most likely have risen and property investors typically make a profit of between 15% and 60% for properties in high-demand areas where they can be sold quickly.
Before you buy a property off-plan…
- Compare the price of the off-plan property carefully with other flats and houses in the area to be sure you’re getting the best deal possible.
- Check that there are transport services, supermarkets and other amenities in the area, and that you’re not stuck out in the sticks.
- If you’re thinking of buying to sell the property on as an investment once it’s completed, check to see if there is demand for this type of property in this area.
- Get a bank guarantee for yourself, and make sure the property developer has their own one, as well as insurance to cover incompletion or late delivery of the property.
- Look to see that the developer has all their legal paperwork in order, including planning permission and building permits, and that they will give you the requisite documents after it is completed, including the Land Registry Certificate (Certidão do Registo Predial) and the Energy Performance Certificate (Certificado Energético).
How to buy an off-plan property in Portugal
- Reserving the property: the buyer pays a down payment as a sign of good faith
- Signing the contract: you pay the deposit (up to 20%)
- Only after construction is finished do you pay the rest
If you are happy to wait for construction of the off-plan apartment or house to be completed, this could be the perfect way to buy your next home or investment property, as long as you take all the necessary precautions and don’t try to cut any corners.
Urgent property sales in Portugal
Purchasing real estate doesn’t have to be a lengthy process, even in the heart of summer. If you’re planning to settle into your new home this season, there are ways to speed up your search and find great deals faster. One of the best options? Urgent property sales in Portugal, offering a unique chance to secure a home quickly and at an attractive price.
Portugal leads house price rises in the EU in the first quarter of 2025
Year-on-year house prices increased by 5.4% in the euro area, 5.7% in the EU, and... 16.3% in Portugal, according to Eurostat.
Potential pitfalls of buying property in Portugal: a guide for foreign buyers
Dreaming of buying a property in Portugal and starting a new life under the sun? It should be an exciting experience, but for many expat buyers, the process can feel overwhelming and complicated. The legal system is different, the paperwork is in Portuguese, and the buying process differs greatly from your home country.
Cheap property in Portugal under €150K: best deals for 2025
Looking for cheap property in Portugal under €150,000? Despite house prices at record highs, there are still great bargains available if you know where to look. From affordable apartments in quieter parts of the Algarve to budget-friendly homes on the outskirts of Lisbon and Porto, as well as charming rural properties, Portugal offers a variety of options for buyers on a budget.
Portuguese Government launches new housing policy to tackle rising prices
Portugal’s Prime Minister has announced a fresh housing strategy aimed at bringing together all key players in the property sector to help resolve the country’s housing crisis and curb price increases.
Country homes for sale in Portugal: only 24% under €100,000
Country homes in Portugal stand out for their charm, character and use of traditional materials such as wood, stone and brick. Also known as rustic homes, they appeal to buyers looking for a quieter lifestyle or an affordable second home in the countryside. However, finding one can be a challenge—whether you're a family or an investor—as country homes made up only 6% of all listings on idealista in the first quarter of 2025. And of those, just 24% are priced below €100,000.
Renovated properties for sale in Portugal
Renovated homes in Portugal are in high demand, offering a blend of traditional charm and modern comfort. From restored townhouses and apartments in Lisbon to upgraded farmhouses and villas in the Algarve, these properties combine historic character with updated interiors and contemporary amenities.