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Own property in Portugal

What is the cost of building a house in Portugal?

cost of building a house in portugal

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Once you have successfully bought land, the subsequent stage in property investment is finding out the cost of building a house in Portugal before starting the construction process. The construction can be demanding as it entails substantial financial commitment over a considerable period. Before getting deep into your pockets, this guide will help you have an overview of the expenses and what to expect when building a house in Portugal. 

How much does it cost to build a house in Portugal?

Various factors influence the cost of building a house in Portugal, including the materials used and the construction method employed. One crucial factor is geographical location, which significantly impacts expenses. Urban centers and high-end areas are more expensive, while rural regions offer potential savings for building your new home.

In 2023, the average construction value per square meter is €532 ($580).

Construction costs in Portugal

If you are considering building a house in Portugal, it is advisable to have an estimate to ensure it aligns with your budget. Materials are a significant cost of building a house in Portugal. These include bricks, cement, steel, lumber, roofing materials, windows, doors, plumbing fixtures, electrical, and insulation. The cost of these materials can fluctuate due to market conditions and transportation expenses. It’s essential to consider the quality and specifications of the materials, as higher-quality options may come at a higher price but offer durability. 

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Land price in Portugal

Urban areas command higher land costs than rural regions, primarily due to their proximity to commercial centers and popular tourist destinations. Conversely, rural areas in Portugal generally offer lower land prices due to relatively lower demand. It is important to note that foreigners participating in the Golden Visa Program cannot purchase residential properties in Lisbon, Porto, and Algarve due to the high demand in these areas.

However, regions outside these areas present development opportunities, making them attractive to potential investors. On average, land in Portugal is around €2,536 ($2,764) per square meter.

constructing a house portugal

3 additional cost of building a house in Portugal

1. Laborers

Laborers are a significant price for building a house in Portugal. The number of laborers required depends on the project’s size, complexity, and timeline. It is best to consult with your contractors on the laborers needed to fit your budget. In Portugal, the average salary of construction workers is €12 ($13.08) per hour. 

2. Architect cost

There are no standardized rates for architects in Portugal. However, common practice dictates that the fees charged by architects are either a percentage of the estimated construction cost of building a house in Portugal or based on an hourly rate. It is essential to establish the architect’s fee and agree on the terms before starting the project, with a clear understanding of the services included in the agreed-upon price.

3. Licenses

When constructing a house, you must obtain a Licença de Construção or construction license, which serves as the building permit given by the local municipality. To apply, you must submit documents including a project description, architect’s report, plans and drawings, certificate of ownership, proof of planning permission, and other supporting materials. 

Legal fees

Legal fees are an integral part of the construction cost in Portugal. Engaging legal services during a construction project is crucial for ensuring compliance with local building regulations in Portugal and safeguarding one’s interests. The permitted price of building a house in Portugal varies depending on the project’s complexity. It is advisable to consult with a legal professional who can provide a detailed breakdown of the anticipated legal fees based on the specific needs of your construction project.

How to build a house in Portugal?

To build a house in Portugal, start planning and designing the project carefully. When considering luxurious spaces, you should also consider the additional cost to build a villa in Portugal. In this step, engage the services of an architect to help you create detailed plans and obtain the necessary permits.

Once you have finalized the design, you can already begin the construction. Throughout this phase, we recommend hiring a reputable contractor to ensure high-quality workmanship and finish the project on time. Regularly inspect the building to keep you updated with the project’s progress and make changes as necessary. Finally, obtain the required inspections and certifications before moving into the finished house.

Build a house in Portugal with Own Property Abroad

Do you want to build a house in Portugal? Own Property Abroad can assist you and ensure a seamless and hassle-free property journey, whether building, selling, or buying real estate in Portugal. Thanks to our knowledge and experience in the local market, we can help with legal requirements, finding suitable properties, negotiating the best deals, and conducting due diligence.

With our expert team, you won’t have to navigate the complexities of the Portuguese real estate market alone. For further information on how we can assist you, kindly drop your details below or email us at [email protected]. Let’s start working on your property success story today!

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Frequently Asked Questions (FAQs)

How much does it cost to build a new house in Portugal?

The cost of building a house in Portugal can vary significantly depending on location, size, complexity, materials used, and market conditions. On average, the price reaches up to €532 ($580) per square meter, and the cost to build a villa in Portugal may be higher due to its unique features. 

What is the average construction cost in Portugal?

As per Ministerial Order No. 7-A/2023, the average construction cost is €532 ($580) for every square meter.

How much does a house cost in Portugal?

Depending on the location, size, and market conditions, houses in Portugal can cost from €480,000 ($523,200) to €1.8 million ($1.96 million).

Can I build my own house in Portugal?

Yes, it is possible to build your own house in Portugal. However, it is critical to comply with local building regulations in Portugal, obtain necessary permits, and ensure qualified professionals carry out the construction, as specific tasks may require specialized expertise.

Do you need planning permission to build a house in Portugal?

Yes, planning permission is required to build a house in Portugal, and it is in the form of the Licença de Construção or construction license (building permit). It is necessary to obtain this before commencing any construction project.

How to get a builders license in Portugal?

A builder’s license is known as Alvara de construction, and contractors need this permit to undertake any construction activities. You can apply for this with the Institute for Public and Private Construction and Real Estate. 

Written by Monisa Ruth Simon

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