Porto has long been a rival to the larger and more cosmopolitan capital of Lisbon. This elegant and atmospheric northern city has plenty to offer in its own right and is an incredible place to live in Portugal. Its inhabitants are famous for being friendly, the cost of living is lower, and the city is imbued with the relaxed feeling of a smaller city where everything moves at a slower pace.
And as house prices rise in Lisbon, many people pick Porto as their Portuguese city of choice. There are also many incredible places to buy property in Porto – who knows, you could find your dream home in this northern city.
From the best areas to buy property in Porto to understanding average prices in each neighborhood, this comprehensive guide brings you all the valuable insights about the city’s real estate landscape.
Here’s what you’ll find in this article:
Is buying property in Porto a good idea?
Investing in property in Porto is a wise choice. The city offers a variety of property types and price ranges, from modern apartments to luxurious homes, making it accessible to different budgets. Porto’s real estate market is significantly more affordable than Lisbon and other Western European cities, enabling buyers to get excellent value for their investments.
Furthermore, Porto’s real estate market is expected to grow. Recent reports forecast a 5.8 percent increase in Portugal’s property market by 2025, with Porto recognized as a key region driving this trend. This projected growth enhances its attractiveness as a stable and profitable location for property investment.
Whether you’re seeking an investment property, a centrally located home, or a peaceful coastal retreat, Porto meets many needs. Its vibrant cultural scene, excellent infrastructure, and improving economic prospects add to its appeal, making it a practical and strategic choice for buyers.
Here are some of the most compelling reasons why you should consider buying property in Porto:
Affordability: Porto’s real estate market is more affordable than Lisbon and other major Western European cities. This allows investors to secure quality properties at lower costs, making it a practical choice for budget-conscious buyers.
Diverse property options: The city offers many property types, including modern apartments, new builds, luxury homes, and affordable housing options. This diversity caters to various buyer preferences and financial capacities.
Strong rental demand: Porto is a tourist hotspot and a thriving hub for remote workers and expatriates. This creates a high demand for rental properties, offering steady income opportunities for buy-to-let investors.
High growth potential: Porto is a major driver in Portugal’s projected property market growth of 5.8% by 2025. With strong market performance expected, purchasing property here positions buyers to benefit from capital appreciation.
Buying Property as a Foreigner
Foreign investors and expatriates are allowed to purchase property in Porto and throughout Portugal. However, it is highly advisable to seek the assistance of local real estate agencies or buyer’s agents when purchasing a home in Porto. They can help guide you through the process. Additionally, working with an experienced real estate lawyer is essential to avoid any legal issues.
While foreigners are allowed to buy property and invest in the real estate market, there are a few criteria that must be met for those who want to live in the country. Simply buying property won’t give you residency, as you’ll need to apply for one of the Portuguese residency visas to do so.
Portugal Golden Visa
While real estate investment has been removed as an option, Portugal’s Golden Visa is still an excellent avenue for gaining residency. Under this program, non-EU citizens can obtain a residency permit by making specific investments in Portugal, such as creating jobs or investing in cultural or scientific projects. Once the residency is secure, you can purchase properties anywhere in the country.
Retirement Visa (D7)
Also known as the Passive Income Visa, the D7 Visa is particularly favored by non-EU retirees who want to set up a base in Portugal and enjoy the country’s stunning landscapes and exceptional living standards. Meeting the minimum income requirement is crucial for the Portugal D7 Visa. You must demonstrate a stable and regular passive income that is at least equivalent to the Portuguese minimum wage. If you’ve held the D7 Visa for five years, you can apply for permanent residency or citizenship.
Property Types Available in Porto
With the property market well and thriving in Porto, investors will be pleased to hear that there are plenty of options on the table regarding property types to invest in. From luxury Porto homes to renovation projects, land for sale, and fancy condos, you won’t be short of opportunities to land your dream property. Property acquisition in Porto can be an excellent investment. Here are some of the property types on offer:
Modern apartments: Stylish and contemporary apartments are common, especially in newly developed or renovated areas. These often feature modern amenities and are popular among young professionals, expatriates, and investors looking for rental income.
Historic townhouses: Many charming, traditional properties in Porto’s historic center showcase classic Portuguese architecture with tiled facades and intricate ironwork. These properties are ideal for buyers looking for character-filled homes.
Luxury homes: Upscale properties, including large houses and penthouses, cater to buyers seeking high-end features such as spacious layouts, premium materials, and panoramic views of the Douro River or Atlantic coast.
Restoration projects: Porto’s older buildings and townhouses offer buyers interested in renovation opportunities. These properties often have the potential for significant value appreciation after restoration.
Commercial properties: Porto also offers commercial real estate, including retail spaces, office buildings, and mixed-use developments, for investors interested in business opportunities.
Take a look at our How to Buy Property in Portugal Ultimate Guide by Local Experts
Real Estate Investment in Porto
Is it a good time to make a real estate investment in Porto?
In 2024, it’s a perfectly good time to invest in Porto real estate because of the favorable hike in prices in recent years. They’re continuing to rise and are expected to do so for the foreseeable future.
Porto is also considered a seller’s market right now, so if you get a great deal, you should close it as soon as possible and resell it at a later date for a high property value. Real estate investments in the city are attractive for investors at the moment, as the city is in high demand.
Brick and Mortar has long been a safe investment option, and Porto continues to be a city that garners interest. Should you wish to rent out your property in the short or long term, you should be able to get a nice return on your investment.
Unfortunately, the Portugal Golden Visa no longer accepts residential property investments or commercial properties as qualifying investment options. However, it’s still possible to invest in Porto real estate, just not for the Portugal Golden Visa.
What’s rental ROI like when investing in Porto property?
If you’re looking to invest in a house for rental purposes, Porto can be an excellent option considering it’s a tourist hub and has become a very lucrative property market. Renting out your property during a busy season can yield approximately 4 to 6 percent.
All in all, what makes an investment in the property market in Porto so appealing is that the city is considered affordable, safe, and has excellent infrastructure. These factors make living in Porto very comfortable and attractive for tourists looking to soak up some culture and unwind in Portugal’s second-biggest city.
Porto’s Real Estate Market Overview
Porto offers a diverse range of property types and prices to meet various budgets and needs. You can find both residential and commercial properties with excellent infrastructure. Options include modern apartments with stunning views, contemporary villas in trendy neighborhoods complete with swimming pools, and traditional houses that provide easy access to the greater Porto area.
In 2024, Porto’s real estate market has shown resilience and growth, reinforcing its reputation as a prime location for property investment in Portugal. The North region, which includes Porto, experienced a 13.2 percent year-over-year increase in median property prices as of October 2024, reaching €1,472 per square meter.
Although there was a 21 percent decrease in closed rental contracts in the first quarter of 2024 compared to the same period in 2023 – largely due to rising rental prices – the market is exhibiting signs of recovery, particularly in downtown Porto and shopping centers, which have seen record-breaking figures.
Projections suggest that Portugal’s real estate market may see a 15 percent increase in investment volume in 2024 compared to 2023, with significant activity expected in the latter half of the year. Porto’s increasing attractiveness to international investors and expatriates, along with its rich cultural heritage and economic opportunities, continues to drive demand in the real estate sector.
However, recent regulations have affected the short-term rental market, prompting investors to shift their focus toward medium- and long-term rental opportunities. Additionally, Portugal’s economy is projected to grow by 1.7% in 2024, providing a stable environment for real estate investments.
How to Buy Property in Porto
Buying property in Porto involves several key steps to ensure a smooth and legally compliant transaction. The most crucial aspect is to assess your financial situation and set a budget, considering additional costs such as taxes, legal fees, and maintenance. Then, define your purchase purpose: investment, residence, or vacation home.
Where possible, work with a local, licensed agent familiar with Porto’s real estate market so that they can help you find suitable properties and negotiate better deals. Here is a general step-by-step guide for property buyers in Porto:
Step 1: Secure financing for your property. Evaluate your finances, research mortgage options from Portuguese banks, and comprehend associated costs such as taxes, legal fees, and property registration expenses.
Step 2: Find the perfect property. Set a budget and research the real estate market in Portugal, focusing on location, amenities, and rental potential. Seek guidance from real estate professionals, such as buyer’s agents or real estate agents.
Step 3: Make an offer. Once you find a suitable property, negotiate an offer with the seller, potentially with the help of a real estate professional. It may be beneficial to have a buyer’s agent representing your interests during negotiations.
Step 4: Reservation Agreement and CPCV. Once an offer is accepted, a Reservation Agreement may require a refundable fee. The Promissory Contract (CPCV) formalizes the commitment to acquire real estate between the parties at a future date under specific conditions and includes a deposit to secure the transaction. We recommend that the CPCV be signed in front of a Notary.
Step 5: Signing the Escritura. The Escritura, or Final Deed, formally transfers ownership of property. It is signed before a Notary and includes the payment of any remaining balances and fees. Once signed, the buyer officially becomes the property owner, finalizing the process.
Requirements to Buy Property in Porto
In addition to having the finances to purchase the property or having a mortgage, there are a few other requirements that must be met or additional processes that will make the purchase experience smoother.
Portuguese tax number (NIF)
To open a bank account in Portugal, you will need a NIF, which stands for the Portuguese tax number. If you are a non-EU national, you are required to have a fiscal representative. Additionally, you can apply for your NIF number online, which allows you to avoid a visit to the local tax office. Our partner, Global Citizen Solutions, provides a comprehensive guide on how to obtain a tax identification number (NIF) in Portugal.
Portuguese bank account
When purchasing property in Portugal, it is advisable to open a Portuguese bank account. This can help you avoid transaction fees during the buying process. There are several banks in Portugal to consider, many of which also provide mortgage options for international buyers. Some well-known banks include Millennium BCP, Novo Banco, Banco BPI, and Banco Santander Totta.
Mortgages
Getting a mortgage in Portugal involves approaching banks or mortgage agents for an initial estimate. The maximum amount you can borrow is determined by the loan-to-value (LTV) ratio, which represents the ratio of the loan amount to the value of the property used as collateral.
In Portugal, fiscal residents can secure an LTV of up to 90 percent for their primary residence and up to 80 percent for a secondary or holiday home. This ratio is based on the lower value of either the purchase price or the bank’s appraisal value.
For non-residents in Portugal, the maximum loan-to-value ratio is typically between 60 and 70 percent of the property’s value, although this can vary depending on the bank.
Fixed-rate mortgages typically come with a premium but provide stability by offering protection against fluctuations in interest rates. On the other hand, variable-rate mortgages, which are linked to the Euribor, feature changing interest rates. As a result, monthly payments can vary over time, and early repayments may incur a small percentage charge on the repaid capital.
Property Taxes
Portuguese property taxes are levied on property owners, buyers, and sellers, with varying obligations depending on the type of property and the nature of the transaction. Understanding these taxes is crucial when planning a property purchase or sale in Portugal.
Municipal Property Tax (IMI)
The IMI (Municipal Property Tax) is an annual tax calculated based on the municipality where the property is located. The rates for urban properties range from 0.3% to 0.45% of the Tax Asset Value (VPT), and in some cases, they can go as high as 0.5%. For rural properties, the rate can be up to 0.8%.
Property Purchase Tax (IMT)
The IMT (Municipal Tax on Onerous Transmissions of Real Estate), also known as the Property Transfer Tax, is a tax imposed on the purchase price of the property in Portugal. This tax ranges from 0% to 10%, depending on the price, location, property type, and intended use (whether it is for permanent residence or a secondary home). A fixed rate of 10% applies if the buyer is associated with territories that benefit from favorable tax schemes, often referred to as blacklisted jurisdictions.
AIMI (Additional to IMI)
The AIMI (Additional to IMI) is a post-purchase tax that applies to properties valued at more than €600,000. AIMI is calculated as follows:
- For property values from €600,001 to €1 million, a tax rate of 0.7% is applied.
- For property values from €1 million to €2 million, a tax rate of 1% is applied.
- For property values above €2 million, a tax rate of 1.5% is applied.
Stamp Duty
Stamp Duty (Imposto do Selo) is an additional tax that the Portuguese government charges for real estate transfers. For real estate transactions, this tax amounts to 0.8% of the total value of the deed and must be paid at the time of purchase.
Best Places to Buy Property in Porto
Porto’s historic center is certainly the most picturesque part of the city, with winding cobblestone streets that lead down to the river. But is it the best neighborhood in Porto for living and purchasing property? That depends entirely on what you are looking for.
There are also several other luxury homes for sale in newer neighborhoods in Porto to the south and to the north of the city, which are equally lucrative options in terms of investment. If you prefer to live away from the bustle of the touristic areas, closer to the incredible northern Portuguese coastline, there are many spots to choose from.
1. Ribeira, Miragaia, and Baixa
Few views in Porto better exemplify its beauty than those of Ribeira. The Ribeira neighborhood is so-called because it lies next to the Douro River, and every photo looks fit for a postcard. Neighboring Miragaia is equally beautiful and known for being particularly lively during São João, the traditional street party that takes place in Porto in June.
Residential real estate in Ribeira, Miragaia, and Baixa neighborhoods has an average price of €4,016 per m². The maximum and minimum prices will depend on the property type you want to purchase. This centrally located neighborhood is close to everything you might need. It’s within walking distance from the center, as well as the bars, restaurants, and nightclubs. It also has several different metro stations, making getting around easy.
2. Cedofeita and Boavista
Another charming historic neighborhood in central Porto, this area surrounds the pedestrianized Rua de Cedofeita. Popular with younger residents, it also features many weekend street markets. Properties for sale in Cedofeita and Boavista are an attractive option for investors who are looking for luxurious property types.
In the neighborhoods of Cedofeita and Boavista, the average residential real estate is valued at €4,016 per m². The maximum and minimum prices will depend on the property type you want to purchase. This centrally located neighborhood is perfect if you want to be in the historic heart of Porto. It is also good for shopping and has good transport connections.
3. Vila Nova de Gaia
Vila Nova de Gaia—also known as Gaia—is the city on the other side of the Douro River. It is best known for the cellars where Port wine is aged. However, the city extends far beyond the riverside. It makes an attractive investment option as it is close to Porto and less expensive than the city’s downtown district. The average residential real estate in Gaia is €1,791 per m² for a house. Gaia is close to the center of Porto but offers much more variety in terms of housing options.
4. Vila do Conde
The charming historic town of Vila do Conde has been rated as one of the best areas in the greater Porto region. When visiting this beautifully traditional seaside town, it’s not difficult to see why. Its distance from the city means it scores highly in terms of cleanliness, air quality, and security.
The average property price in Vila do Conde is €1,235 per m² for a house. This quiet seaside town is beautiful and peaceful. The metro connects it to the city of Porto, making it convenient to live in.
Exploring Visa and Immigration Options for Portugal
If you're considering making the move to Portugal, it's essential to be informed about the various visa and residency options available. The Golden Visa Portugal program is an attractive option for many, offering residency to investors and their families. For those eyeing retirement in this beautiful country, the Retirement Visa (D7) is tailored for you. Digital nomads can take advantage of both short and long stay options with the Nomad Visa (D8). Meanwhile, the NHR - Non Habitual Tax regime provides significant tax benefits for new residents.
For the entrepreneurial spirit, Portugal offers the Entrepreneurship/startup Visa (D2) - Start-up Visa (open company) tailored for those looking to establish their businesses in the country. Those with specialized skills can explore the Work visa for highly qualified employees (D3). Additionally, if you have Portuguese ancestry, you might be eligible for Citizenship by descent.
However, moving to a new country isn't just about visas. If you're thinking of buying property, our guide on Buying Property in Portugal can offer invaluable insights. Dive deeper into the immigration process with our comprehensive Portugal immigration guide. For Americans specifically looking to relocate, we have curated information on Americans moving to Portugal. Lastly, one can't forget the importance of the NIF (Tax Registration Number), a crucial step in any relocation process.
Frequently Asked Questions about Buying Property in Porto, Portugal
Should I live in Lisbon or Porto?
Both Lisbon and Porto are cities on the up, becoming real hotspots for investment and culture. Each has its own advantages and disadvantages, and which city suits you the best is entirely up to your needs and expectations. Porto is smaller and more laid-back, while Lisbon is bigger and more international. Property in Lisbon has become increasingly expensive in recent years, whereas property in Porto is still relatively inexpensive by comparison.
Is now a good time to invest in Porto real estate?
According to many reports, Porto is in the early stages of a real estate boom. With big growth in the industrial and tech sectors in the city, as well as an increase in tourism and public spending, there is all the reason to believe that the price of Porto, Portugal, real estate will continue to rise. It is expected that in the coming years, the property price in Porto will continue to rise.
The buying process can be a little complicated, so it is best to have an experienced expert on your side that is deemed reliable. If you work with a local buyer’s agent, they will have access to new listings that you will not find elsewhere on the market. A little tip for you to bear in mind.
Is buying real estate in Porto, Portugal, expensive?
Average residential real estate prices in Porto are €3,328 per m², cheaper than the prices in most other Western European cities and cheaper than Lisbon.
With properties for sale in Porto, Portugal, the maximum price and minimum price will depend on the property type you are looking to purchase.
Is it expensive to rent a house in Porto?
The average rent in the center of Porto for a one-bedroom apartment costs around €839 per month. This data is from Numbeo.
Are there any international schools in Porto?
Yes, there are international schools in Porto. You can consult our article on International Schools in Portugal for a complete overview. If you are moving to Portugal with a family, you’ll find many spacious property types, including luxury homes, in Foz do Douro district, which has the charm and allure of a coastal town, could be excellent options for finding your dream home.
What is public transport like in Porto?
Public transport is cheap and very accessible in Porto, with six different metro lines and train and bus links to national and international destinations.
Where do expats live in Porto?
Many expats who live in Porto live in the central districts of the city, although those who prefer to be by the beach live in areas such as Foz do Douro. This part of the city is particularly good for families, as you will find spacious properties and all the amenities at your convenience. When it comes to property types in the city, you’ll find that you have many options, from modern apartments to spacious properties on the coast. You’ll also come across many luxury homes in and around Porto if this is what you are looking for.
Does Porto have a beach?
Yes, Porto does have a beach in Foz do Douro. It can be accessed easily from the center by bus. You’ll find many fabulous beaches on the northern Portuguese coast. If you are looking for dream home by the beach, this could very well be a top place to consider.
What areas to avoid in Porto?
There aren’t really any areas in Porto to avoid, and it just depends on your preferences. If you don’t want to be too far from the city center, then it is probably advisable to pick areas such as Baixa or Cedofeita and Boavista. If you would like to be outside of the city, the seaside town of Vila do Conde is a good option to buy property in Porto.
Is Porto expensive?
In comparison to other cities in western Europe, the cost of living in Porto is very reasonable. A meal in a traditional Portuguese restaurant will set you back around €9.50, and a beer costs around €2. Overall it is slightly cheaper than Lisbon.
Is Porto a safe city?
Porto is a very safe city. Crime in Portugal is generally very low, and few problems are reported by those who visit the country. Pickpockets can be common in the city center, but violent crime is usually very low.
What is the best neighborhood in Porto to live in?
The best areas to live in in Porto will depend on your needs. For example, if you want to live in a central location, Baixa, Cedofeita, and Boavista are good places to find your dream property.
If you are moving with a family, consider Foz do Douro, by the Atlantic Ocean, which has all the amenities you need, plus a long promenade to enjoy your weekends. Bonfim and Campanhã are also excellent up-and-coming areas to consider. Vila Nova de Gaia is also a good choice, where you can admire stunning views of Porto and which also offers lovely houses for families.
You’ll also find many luxury homes in Porto if this is what you are after
Working with a buyer’s agent can prove useful if you are unsure of where to buy. They can provide information on the best neighborhoods tailored to your specific needs. They will also have access to new listings on the market that you will not find elsewhere. It can also be a good idea to set up email alerts for the Porto district to keep you updated with prospective properties.
Is Porto a nice place to live?
Yes, Porto is an excellent coastal town to live in and invest in. It has a high standard of living and low crime rates, and it is very affordable compared to many other Western European cities.
Is Porto, Portugal a good place to retire?
Yes, the Porto district is a good place to retire, mainly if you are a culture lover. In this coastal town, you will be surrounded by large parks, cafes, and cobbled streets. The healthcare in Portugal is also excellent, with many hospitals and healthcare facilities in and around Porto.
If you are looking for properties to buy in Porto, working with a buyer’s agent that is deemed reliable can prove helpful. They will have access to new listings and properties that you will not find elsewhere.
Where do the rich live in Porto?
The more affluent areas in Porto are Foz do Douro and the historic center, although you will likely find some nice bargains if you scout around. Vila Nova de Gaia is another affluent area, with an average price per square meter of €2,369/m² for a home.
We recommend speaking with a reliable real estate professional when buying real estate in the Porto district to find the best deals and get an overview of the Portuguese property market. A real estate professional will also be able to provide you with information on the buying process.
Our real estate division, Goldcrest, is a local buyer’s agent that provides insightful real estate expertise and guaranteed accurate advice. They can help you on your property-buying journey in Portugal, from sourcing to property acquisition. They can also ensure guaranteed accurate property prices so that you can secure the perfect investment at the best possible price (which can be different from the listing price) and will have access to new listings that are not available on the market. You can get in touch with them here.
What is the most expensive property for sale in Porto, Portugal?
In Porto, the most expensive home for sale is a 9,774 square foot house that has a listing price of $8,500,000. This is the very maximum price that you can expect to pay in Porto. The maximum price and minimum price will depend on the type of property that you are looking to purchase.
