10 cheapest municipalities to buy a house in Portugal

Currently, families are facing a high cost of living, soaring housing prices, and even greater difficulties in obtaining a mortgage due to rising interest rates. All these factors complicate the home-buying process. However, for those considering a move to another city, there is good news: there are 192 municipalities in the country where the average price per square meter of housing is less than 1000 euros (euros/m2). Additionally, there are 60 municipalities where you can buy a home for less than 500 euros/m2. Find out which 10 municipalities are the most affordable for purchasing housing in Portugal.

According to data from the National Statistical Institute (INE), published on Wednesday, October 25, the average cost of buying a house in Portugal was 1,541 euros/m2 over the last 12 months ending in the second quarter of 2023 (+10% compared to the same period last year). This means that someone who decides to buy a house with an area of 100 square meters (m2) will spend around 154,000 euros.

When analyzing the issue of housing purchase costs, it becomes clear that in 252 municipalities in Portugal, the average housing price during this period was below the national median. This data shows that high housing prices in municipalities located in major cities such as Lisbon, Porto, and Faro are driving up housing prices across the country.

It turns out that in most Portuguese municipalities with available data - the sample includes 301 municipalities out of a total of 308 - housing prices are much lower. In these municipalities, the selling price of housing was below 1000 euros/m2, and in 60 municipalities, the price was below 500 euros/m2. Find out the average selling price of homes over the last 12 months ending in June, on the map prepared by idealista/news.

The most affordable municipalities for buying a house turned out to be those in the interior of the country.

The second cheapest municipality for buying a house in Portugal is Figueira de Castelo Rodrigo (€209/m²). The third is Fornos de Lagodres (€215/m²). In these two municipalities in the Guarda district, the average selling price of homes from July 2022 to June 2023 was €20,900 and €21,500, respectively.

Other municipalities in the Guarda district (Meda, Almeida, and Pinhel) follow, as well as municipalities in the districts of Castelo Branco (Vila Velha de Ródão), Viseu (Armamar), Santarém (Mação), and Coimbra (Pampilhosa da Serra). The maximum average housing cost in these municipalities is 30,100 euros for this period.

Where is the most expensive place to buy housing? Unsurprisingly, it is in the major cities of the country, such as Lisbon, Faro, and Porto, where the most expensive homes are located. In the municipality of Lisbon, housing prices reached 4080 euros/m2 in the last year ending in June 2023. This means that families had to spend an average of 408 thousand euros on housing.

The list also includes Cascais and Oeiras, also in the Lisbon district, where the prices of sold homes were €3667/m² and €3145/m² respectively, according to the Portuguese statistical organization.

The next four places in the ranking of the most expensive municipalities for buying housing in Portugal are occupied by municipalities in the Faro district: Loulé, Lagos, Vila do Bispo, and Aljezur. Porto ranks eighth with an average selling price of 2,684 euros/m².

The last two places on the list are occupied by Algarve municipalities: Albufeira (€2660/m²) and Tavira (€2570/m²).