A new study carried out by Century 21 has shown that buying property is cheaper than renting in Portugal.
Overseas property investors buying real estate in Portugal will find that it is cheaper than renting in all areas, including the major cities of Lisbon and Porto.
The study, based on data collected by real estate databank, Confidential Real Estate, assuming a 90-square metre home, concluded that buying works out between 14 and 61 per cent cheaper than renting,
In Lisbon and Porto, the difference was found to be 14 per cent and 30 per cent cheaper respectively.
In 13 of the 18 district capitals, buying a 90-square metre property was found to cost on average less than €90,000, ranging from €53,855 in Guarda to €86,485 in Setúbal.
The five exceptions were found to be Evora, Coimbra, Faro, Porto and Lisbon. In the first three, buying a 90-square metre property costs between €100,000- €130,000; in Porto €164,714 and Lisbon €305,429.
In the popular tourist destination of the Algarve, Portimão is €125,444, Tavira and Lagos are around €165,000, and Loulé is around €172,566 euros.
In the Lisbon Metropolitan Area, Cascais is already above €225,000 and Oeiras close to €195,000. However, cheaper options in areas such as Barreiro, Seixal and Montijo, to the South, and Sintra, to the North, are still below €100,000.
In the Porto area, Matosinhos surpasses €100,000, with average property prices in Valongo and Gondomar between €70,000- €77,000.
In Lisbon, average monthly purchase payments for this type of home are around €1,011. Monthly purchase payments vary between a minimum of €182 in Guarda and €564 in Porto.
Average monthly rates for renting a 90-square metre property in Lisbon are €1,170, Porto €810, with all other district capitals below €600.
With buying property cheaper than renting in all areas of Portugal, good investment yields can surely be found for British overseas property investors.