Buy a house in Portugal: here are the10 cheapest municipalities.

Today, families are facing high cost of living, rising property prices, and even greater difficulties in obtaining a mortgage due to increasing interest rates. All these factors complicate the process of buying a home. But for those considering moving to another city, there is good news: there are192 municipalities in the country where the average price per square meter of housing is less than1000 euros (€/m2). And there are60 districts where you can buy housing for less - under500 euros/m2. Explore the10 cheapest municipalities to buy a home in Portugal..

The average cost of housing in Portugal was1541 euros per square meter in the last12 months ending in the second quarter of2023 (+10% compared to the same period a year earlier), according to data from the National Statistics Institute (INE) published on Wednesday, October25th. This means that someone purchasing a100 square meter home would spend around154,000 euros.

Analyzing the cost of purchasing housing, it becomes clear that in252 Portuguese municipalities, the average housing price during this period was lower than the national value. These data show that high housing prices in cities located in major urban areas such as Lisbon, Porto, and Faro, stimulate price growth across the entire territory.

Because it turns out that most Portuguese municipalities with accessible data - the sample consists of301 municipalities out of a total of308 - have much lower housing prices. So, there are192 municipalities where the average cost of sold houses was below1000 euros/m2, and another60 districts where the average price was below500 euros/m2. Find out the average cost of sold houses for the last12 months, ending in June, on this map prepared by the idealista/news portal. Here are the10 cheapest municipalities to buy housing......

It's no wonder that the cheapest municipalities to buy housing are located within the country.

Sernancelhe is the cheapest of all, where the average price of sold residential properties was205 euros/m2. This means that in this municipality in the Viseu district, a house cost an average of around20.5 thousand euros from July2022 to June2023.

The second cheapest municipality for buying housing in Portugal is Figueira de Castelo Rodrigo (209 euros/m2). And the third is Fornos de Algodres (215 euros/m2). In these two municipalities of the Guarda district, a residential property sold in the last year ending in June2023 cost on average20.9 thousand euros and21.5 thousand euros respectively.

"After them, other municipalities located in the Guarda district (Mêda, Almeida, and Pinhel) and also municipalities from the districts of Castelo Branco (Vila Velha de Rodão), Viseu (Armamar), Santarém (Mação), and Coimbra (Pampilhosa da Serra) follow. The average housing cost in these municipalities during this period was no more than30.1 thousand euros. Where are the most expensive houses?"?"

It is also no news that it is in the major cities of the country, such as Lisbon, Faro, and Porto, where the highest real estate prices are found. In Lisbon, homes were sold at an average price of 4080 euros per square meter over the last year ending in June 2023. This means that families spent an average of 408,000 euros on housing.

Right behind them are Cascais and Oeiras, also in the Lisbon district, where the prices of sold homes were 3,667 euros/m² and 3,145 euros/m² during that period, according to data from the Portuguese statistical bureau.

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. Lisbon ranks eighth among municipalities, with an average price of sold houses at 2684 euros/m2.

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