The 10 best places to buy property in Portugal

If you’ve been dreaming about buying property in Portugal – whether for investment, relocation or simply purchasing a beautiful holiday home – you’re certainly not alone. The country’s mix of stunning scenery, rich culture and affordable living costs has seen it surge in popularity in recent years.

The hardest part? Deciding where to buy. To help, here’s our guide on the ten best places to buy property in Portugal.

Lisbon – Portugal’s capital

Lisbon really is Portugal’s beating heart. It’s not just the capital, it’s a city where history, culture, business, and an established expat scene all come together. If you want to live somewhere with a buzzing international community, Lisbon is hard to beat.

This city is wonderfully walkable, boasting cobbled streets and views around every corner. You can also hop on the historic trams for a more leisurely tour of Lisbon. It’s a city packed with world-class restaurants, art galleries, music festivals, and much more. Plus, with a growing reputation as a tech and startup hub, it’s a magnet for digital nomads and young professionals.

As of March 2025, house prices average around €3,750 per square metre, but you can expect to pay a lot more in hotspots like Chiado or Alfama. It’s not the cheapest place to buy in Portugal. However, for investors, the rental potential makes up for it.

Cascais – Luxury coastal living

If you love the idea of coastal living but don’t want to stray too far from Lisbon, Cascais could be the perfect fit for you. This stylish seaside town is just 30 minutes from the capital, and is home to gorgeous beaches, a yacht marina, and some of Portugal’s finest seafood restaurants.

Cascais is a firm favourite with expats, retirees, and families looking for an upscale lifestyle, with great schools and healthcare. It’s also a smart pick for luxury investors targeting high-end holiday rentals.

However, it also comes with high-end prices. In Cascais, properties average around €6,500 per square metre, with some premium beachfront villas coming in even higher.

The Algarve – Holiday hotspot

The Algarve has been popular with foreign buyers for decades, and for good reason. This southern region is famous for its year-round sunshine, world-class golf courses, and picture-perfect beaches. It’s the go-to destination for holiday home buyers, and many expats also choose to retire here

Due to its popularity, property prices here are higher than Lisbon, but generally not as high as ritzy Cascais. On average, property in the Algarve costs around €4,000 per square metre, although high-end villas in places like Quinta do Lago will cost far more.

The region is home to a mix of lively resort towns (like Albufeira), quieter spots (like Tavira), and luxury regions (like Vilamoura). Whether you want peace and quiet or bars and beach clubs, the Algarve has a corner for you.

Porto – Second largest city

Over the last decade, Porto has transformed into one of Portugal’s most exciting cities. It’s often seen as a smaller, more affordable alternative to Lisbon, but with just as much charm.

Averaging at around €3,562 per square metre, it offers a more affordable entry point than the capital, but prices are climbing quickly thanks to its growing popularity. This also makes it a big hit with investors looking to score solid rental returns.

With a booming tourism industry, a fantastic food scene, and stunning riverside views, Porto blends tradition and trendiness beautifully. From its UNESCO-listed old town to its lively wine cellars, the city’s charm is undeniable – making it an increasingly popular choice for property buyers.

Braga – A city of rich heritage

Braga doesn’t always get the recognition it deserves, making it something of an underdog in the international market. This northern city is one of the most affordable places to buy property in Portugal, yet it offers a rich history, a lively cultural scene, and great quality of life.

Braga is perfect for first-time buyers, investors on a budget, and anyone who loves the idea of living in an authentic Portuguese city. It’s also growing in popularity with remote workers, thanks to its affordable prices and fast internet speed.

In Braga, you can still find properties for on average €1,700 per square metre, making it one of Portugal’s best bargains. However, with people catching on to its potential, the city could see prices rise over the coming years, making it a particularly interesting option for those seeking a long-term investment, a more relaxed pace of life, or an alternative to Portugal’s usual property hotspots.

The Silver Coast – Coastal beauty without the crowds

If you want to live by the sea but avoid the crowds (and prices) of the Algarve, the Silver Coast could be perfect for you. Stretching north of Lisbon, the coastline offers stunning beaches, dramatic cliffs, and charming fishing villages.

The Silver Coast attracts retires looking for a peaceful retirement spot, but is also popular with buyers who want sea views on a budget.

Prices average around €1,500 per square metre, making it far cheaper than many of Portugal’s more famous coastal regions. Some popular places to buy include Nazaré, Óbidos, Ericeira, and Peniche.

Aveiro – The ‘Venice of Portugal’

If you love the idea of living somewhere that feels truly unique, Aveiro is worth a serious look. Often called the ‘Venice of Portugal’, this small city is famous for its canals lined with colourful boats, Art Nouveau architecture, and laid-back atmosphere.

But Aveiro isn’t just a pretty postcard town, it’s also a thriving university city, which brings energy, culture, and plenty of rental demand into the mix. On average, house prices sit at around €2,500 per square metre, which is very reasonable for a city with so much charm and rental potential.

Whether you’re looking for a holiday home, an investment property, or a place to settle down, Aveiro can tick those boxes, all while offering a much lower price point than Lisbon or Porto.

Madeira – A subtropical Atlantic island

Madeira is subtropical island floating in the Atlantic southwest of mainland Portugal, which offers lush green mountains, beautiful coastal scenes and a warm, welcoming community.

It’s no surprise that Madeira has become a haven for retirees, digital nomads, and even investors keen to tap into the island’s growing popularity.

Property in Madeira averages around €3,750 per square metre. However, if you want a clifftop villa with panoramic sea views (who doesn’t?) you’ll pay significantly more.

Coimbra – A university city with history

If you want a property that combines affordability, history, and steady rental demand, Coimbra stands out as an excellent choice. Best known for its prestigious university (one of the oldest in Europe) Coimbra is a vibrant, cultural city where centuries of history blend seamlessly with student life.

From the hilltop university overlooking the city to the narrow medieval streets filled with traditional cafes, there’s a sense of living history everywhere you go. It’s also a much cheaper alternative to Lisbon or Porto, which makes it appealing to first-time buyers looking for value.

Property prices here average at around €1,800 per square metre, which is very affordable given the city’s rich culture and rental potential.

Setúbal – Affordable coast close to Lisbon

If you’re drawn to coastal living but don’t want to pay the premium prices you’ll find in Cascais or the Algarve, Setúbal could be exactly what you’re looking for. At around €3,200 per square metre, Setúbal is significantly cheaper than Cascais (although not as affordable as some other options).

Just south of Lisbon, the city offers a gorgeous natural setting, beaches, nature reserves, and a charming old town full of seafood restaurants.

It’s close enough to Lisbon for commuters, but feels a world away in terms of pace and prices.This mix of affordability, nature, and easy access to Lisbon makes Setúbal a hidden gem for both families and holiday home buyers.

Making your dream purchase a reality

Planning on buying a property in Portugal? You’ll likely need to send money abroad during the process, and that’s where Currencies Direct can help.

With us, you’ll enjoy great exchange rates, zero transfer fees, and a range of transfer options, all paired with personalised guidance and support.

If you want to know more, reach out to our team or create a free account today.