Making the right real estate decision in Portugal is never straightforward—it always comes down to your personal goals, lifestyle, and budget.
This guide breaks down the four main options for owning property in Portugal: buying off-plan (in project), buying new or pre-renovated, renovating, or building from scratch. Each comes with its own perks and challenges—let’s dive into the details.
🏗 Buying Off-Plan (In Project)
Pros
- Lower Entry Price: Off-plan properties are usually priced lower than completed homes (though still high by “new” standards).
- Customization Options: Depending on the construction stage, you might choose finishes like paint colors, tiles, bathroom fixtures, and kitchen details.
- Builder Guarantee: New homes come with a mandatory 10-year construction warranty in Portugal.
- Staged Payments: Payments are often split into installments as the project progresses—usually in three stages, making budgeting easier.
Cons
- Waiting for Completion: You’ll have to wait for construction to finish. Developers provide a projected timeline, but it’s not always guaranteed.
- Delays Are Common: Delays happen frequently. You can negotiate penalties in the contract, but if the contractor is in high demand, they might not accept them.
- Finishings Must Be Specified: Always include your chosen finishes in the purchase contract to avoid unwanted substitutions.
- Risk of Incompletion: Although rare, there’s a low-level risk that the project could be abandoned.
🏠 Buying New or Pre-Renovated Properties
Pros
- Move-In Ready: The property is usually ready for immediate use—you just sign, furnish, and move in. Some may even come fully decorated.
- Convenient Process: Once the escritura (deed signing) is done, you can take possession right away.
- Structural Warranty: If it’s a newly built property, you’ll benefit from the same 10-year guarantee on structural elements.
Cons
- Higher Cost: This is often the most expensive route.
- Limited Customization: What you see is what you get—customizing after purchase can be costly.
- Varying Build Quality: Despite the warranty, poor insulation or materials can cause problems later. Check the energy efficiency certificate for clues about construction quality.
- Pre-Renovated Red Flags: Be cautious—many so-called “renovated” homes focus only on cosmetic improvements that deteriorate quickly.
🛠 Renovating an Older Property
Pros
- Tailored Design: You can shape the property exactly to your liking.
- Great Value: Bargains abound, especially on unrenovated homes in both rural and urban fringe areas.
- Pay-as-You-Go: Buy the home and then pay for renovations in stages, spreading out your investment.
- Lower Total Cost: Renovating can result in high-end finishes for a lower overall budget.
- Government Incentives: Portugal offers various rebates and tax incentives for renovating, especially in low-density areas or designated urban rehabilitation zones.
Cons
- Takes Time: Renovations usually take 3 to 6 months. Structural work or changes to the building’s exterior will require planning permission (licenciamento), which can delay progress.
- Finding a Good Contractor: This is critical. Research thoroughly, check past projects, and lock in a detailed contract with timelines and materials specified.
- Bureaucracy: Applying for renovation subsidies involves paperwork and patience.
- Needs Oversight: Either you or someone you trust should visit the site regularly to monitor progress.
🏡 Building Your Own Home
Pros
- Full Customization: From layout to materials, you have total control over the design and function.
- Best Fit: With the right architect and contractor, you’ll get exactly what you want.
- Cost Efficiency: Building is often cheaper than buying a completed equivalent.
- Flexible Investment: Pay for the project in stages as it develops.
Cons
- Long Timeline: Expect the process to take 1 to 3 years, depending on complexity and location.
- Team Coordination: You’ll need to assemble a reliable team: architect, engineers, and licensed contractors.
- Approval Process: Your building plans must be approved by the local Câmara Municipal (city hall), which can take time.
- On-Site Supervision: Regular site visits are essential. Someone should be there weekly (at minimum monthly) to catch and correct issues early.
Final Thoughts
At Savvy Cat Realty, we offer full-service support — from lawyer assistance and engineering checks to negotiation and background checks for new developments. Whether you’re buying, renovating, or building, we tailor our services to your specific needs.
Contact us at contact@savvycatrealty.com for transparent information, free resources. You can also book a free consultation with us: https://savvycatrealty.com/product/free-clarification-call/
