Portugal is still a very affordable country by Western European standards, but the cost of living has increased over the past few years — in particular, the cost of renting and buying a property.
This is especially true in Lisbon, which has become one of the most desirable places to live in Portugal, but those increasing costs are also increasing all over the rest of the country, particularly in Porto and the Algarve.
Looking at the cheapest places to rent or buy, it’s clear that there are a few parts of the country that really stand out, and these are the places you should begin your search if you’re on a tight budget. These places include:
- The Castelo Branco region in Central Portugal
- The Viseu region in Central Portugal
- The Bragança region in Northern Portugal
- The Guarda region in Central Portugal
- The Portalegre region in The Alentejo
The Cheapest Places to Rent a House
According to the National Institute of Statistics, INE, which analysed data up until the end of 2022, the following are the 10 cheapest municipalities to rent a property in Portugal.
- Belmonte, Castelo Branco [Central Portugal]
- Celorico de Basto, Braga [Northern Portugal]
- Castro Daire, Viseu [Central Portugal]
- Melgaço, Viana do Castelo [Northern Portugal]
- Valpaços, Vila Real [Northern Portugal]
- Sátão, Viseu [Central Portugal]
- Borba, Évora [Alentejo]
- Moimenta da Beira, Viseu [Central Portugal]
- Macedo de Cavaleiros, Bragança [Northern Portugal]
- Mirandela, Bragança [Northern Portugal]
The Cheapest Places to Buy a House
Meanwhile property portal Idealista analysed the cheapest places to buy property in Portugal. The research was published in May 2022.
- Penedono, Viseu [Central Portugal]
- Fornos de Algodres, Guarda [Central Portugal]
- Vila Velha de Ródão, Castelo Branco [Central Portugal]
- Mêda, Guarda [Central Portugal]
- Sernancelhe, Viseu [Central Portugal]
- Figueira de Castelo Rodrigo, Guarda [Central Portugal]
- Nisa, Portalegre [Alentejo]
- Pinhel, Guarda [Central Portugal]
- Gavião, Portalegre [Central Portugal]
- Idanha-a-Nova, Castelo Branco [Central Portugal]
- Armamar, Viseu [Central Portugal]
- Vila Nova de Foz Côa, Guarda [Central Portugal]
- Vimioso, Bragança [Northern Portugal]
- Fronteira, Portalegre [Alentejo]
- Almeida, Guarda [Central Portugal]
- Góis, Coimbra [Central Portugal]
- Celorico da Beira, Guarda [Central Portugal]
- Carregal do Sal, Viseu [Central Portugal]
- Penamacor, Castelo Branco [Central Portugal]
- Sardoal, Santarém [Central Portugal]
Expensive Places to Avoid
As well as knowing where to buy, there are a couple of regions that you should avoid. Unsurprisingly, most of these are located in or near Porto and Lisbon, the Algarve, or near the coast in other parts of Portugal.
Expensive Places to Buy a Property:
- Lisbon
- Cascais
- Oeiras
- Porto
- Almada
- Amadora
- Matosinhos
- Odivelas
- Lagos
- Loures
Expensive Places to Rent a Property:
- Lisbon
- Cascais
- Grandôla
- Alcácer do Sal
- Oeiras
- Loulé
- Porto
- Lagos
- Lagoa (Algarve)
- Sesimbra
- Vila do Bispo
- Albufeira
- Aljezur
- Tavira
- Loures
- Matosinhos
- Odivelas
- Amadora
- Silves
- Portimão
Other Things to Consider
One thing to keep in mind is that property can be cheap to buy in places like Castelo Branco or Guarda, but that’s due to the large number of ruins and run-down properties here. As well as the cost of buying, you’ll also need to factor in the cost of renovating.
Another factor is the heat. Places like Central Portugal and the Alentejo that are close to the Spanish border and away from the sea can get very hot in the summer.
You’ll also likely need a car in all of these locations as public transport usually isn’t great in rural Portugal, although this would also be the case in almost anywhere besides Lisbon and Porto.
Grocery costs could also be a factor. Generally the cost of food doesn’t differ too much if you have access to a large supermarket like Continente or Pingo Doce, or have a market nearby, but they can increase if you’re relying on smaller supermarkets. Madeira and The Azores can also be more expensive due to the cost of importing.
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