Identifying budget-friendly real estate in Portugal: a guide to cost-effective property markets.
Affordable Housing Markets Thrive Across Portugal, While Lisbon and Algarve Lead the High-End Market
Portugal's property market presents a diverse landscape, with significant variations in house prices across the country. While some districts and municipalities boast high-end property markets, others offer more affordable options for homebuyers.
Outside the Lisbon and Faro districts, the municipalities of Funchal on Madeira Island and Porto are the most expensive, with a median price of €3,100 and €3,007 per square metre respectively [1]. However, other areas offer more affordable options.
In the Viseu district, Armamar and Sernancelhe stand out. In Armamar, the median price of homes sold was a modest €226 per square metre, and a 100-square-metre home could be purchased for as little as €22,600 in the 12 months ending in March 2025 [1]. Sernancelhe, also in Viseu, offers even more affordability, with a 100-square-metre home available for less than €30,000 [1].
Similarly, in the Coimbra district, Pampilhosa da Serra offers affordable housing, with a median price of €251 per square metre [1]. The cheapest of all is Figueira de Castelo Rodrigo, in the Guarda district, where the median price of homes sold was just €190 per square metre, and a 100-square-metre home could be purchased for €19,000 in the same period [1].
The 10 most expensive municipalities to buy a house in Portugal, based on price per square metre, are concentrated in Lisbon, Faro, Porto, and Madeira Island [1]. Lisbon and Cascais, both in the Lisbon district, lead the list with prices exceeding 400,000 euros for a house with the same area, making them the most expensive in the entire country [1].
The Algarve region, known for its tourist attractions, also features five of the 10 most expensive municipalities: Lagos, Loulé, Aljezur, Albufeira, and Vila do Bispo [1].
On the other hand, the 10 cheapest municipalities to buy a house are spread across six districts: Bragança, Guarda, Viseu, Castelo Branco, Coimbra, and Santarém [1]. In Idanha-a-Nova (Castelo Branco), a 100-square-metre home can be purchased for less than €30,000 [1].
In conclusion, Portugal offers a wide range of housing options, from the high-end markets of Lisbon, Cascais, and the Algarve, to more affordable options in various districts across the country. Whether you're looking for a beachfront villa or an affordable city apartment, Portugal has something for everyone.
[1] Source: Various reports from March 2025.
- Despite Lisbon, Algarve, and the expensive cities in Madeira Island and Porto leading the high-end property market in Portugal, there are other areas with more affordable housing options, such as Armamar, Sernancelhe in Viseu district, Pampilhosa da Serra in Coimbra district, and Figueira de Castelo Rodrigo in Guarda district.
- The Algarve region, famous for its tourist attractions, is home to five of the 10 most expensive municipalities, yet Portugal's 10 cheapest municipalities to buy a house are spread across six districts, offering more affordable real-estate opportunities.
- Contrary to the high-priced housing in Lisbon and Cascais, which exceed 400,000 euros, Portugal's affordable housing markets can be found in Idanha-a-Nova (Castelo Branco), where a 100-square-metre home can be purchased for less than €30,000, proving that the country caters to a diverse range of investors looking at the property and finance sector.
