Would you like to live in the house of your dreams? With looks and functionality that match 100% of your family's needs and desires? You can! If you are considering buying land in the Algarve, either to build a vacation home or a permanent residence, you have a unique opportunity to build the property you have envisioned from scratch and increase your equity!
Best tips for buying land in the Algarve
The real estate market in the Algarve is still in a growing phase. Nevertheless, the increase in the average house price in Portugal, according to the INE (National Statistics Institute), in the third quarter of 2021 alone rose 12.2% — almost double the rise of the previous quarter. Now, given this increase, many Portuguese and foreign investors have started to turn their attention to buying land to build houses, instead of buying new or used properties. If this is your case, follow us through the next few tips... so that you don't miss your target!
Land Location
To begin with, the land you are looking for is located in the Algarve, but where? Rural or urban area? Portimão, Ferragudo, Monchique, Praia da Rocha, Alvor... The exact location of the land is very important, especially if you intend to build a villa for vacations or a permanent residence. In that case, it is important to analyze the proximity to urban centers, beaches, workplaces, schools, pharmacies and hospitals or any other service you want close to your family.
The lot's surroundings also deserve an analysis! So get to know the accesses to the plot in the Algarve that you already have your eye on, and find out about the safety conditions and type of neighborhood.
Land size
You won't buy land in the Algarve without checking the size first, will you? Yes, because size counts for a lot here! Especially if you have a construction project that requires more space. Also, don't forget to check the urbanistic parameters that affect the land, such as permitted building area and lot boundaries.
Land topography
Flat land or sloping land? Our question refers precisely to the topography of the land in the Algarve. In other words: if you buy a flat or level land, you have a simplified construction project, but if you buy a cheaper land, with steep sloping topography, for example, you may be able to build an interesting house in architectural terms, yes, but with extra work and certainly an increase in construction costs with the payment of containment and drainage supports.
Soil Quality
Will you also have to analyze the quality of the soil of the plot in the Algarve? Yes, the properties of the soil (clay, sandy, silty, with or without the existence of water...) can be fundamental to the construction process, depending on what you intend to do with the plot, naturally. If you don't have any knowledge in this area, you should ask a professional for advice to understand if the soil allows for a simpler and more economical foundation or if, on the contrary, it requires increased expenses to support foundations. A good tip, for now, is to see if there are many stones on the surface of the land, which usually indicates the need to invest in a deeper foundation. And on the way you can check if there are rivers or streams nearby, a sign that the soil is not very resistant, and therefore may also require higher expenses for the foundation.
Solar orientation
And now, let's talk about solar orientation. To optimize the house you intend to build on that plot of land in the Algarve, you need to be aware of the solar orientation since it can influence the reduction of the electricity bill, the comfort, and even the preservation of the furniture and the maintenance of the garden. Besides, if you don't study the solar orientation, you can run the risk of building the pool in a shaded area, for example!
Usage options
We have talked throughout this article about building a house on land in the Algarve, but don't take it for granted! Before you buy, you should check how the plot is classified in the town hall, because some plots in the Algarve do not have the proper infrastructure for construction and others are located in protected areas or zones that are not intended for construction.
Documentation and legalization
We are almost at the end of the list of tips for buying land in the Algarve, but first, we have to tell you about bureaucracy: necessary documents and compliance with the legislation in force. And that's because just like buying apartments or villas, buying land is also subject to the presentation of documents confirming its compliance with the law, namely: the Municipal Master Plan, the Land Registry Certificate and the Caderneta Predial, and after you have bought the land, the licensing project to build your vacation home or permanent home in the Algarve, followed by the building permit and the habitation permit.
You will also have to pay some taxes after you buy a plot in the Algarve or elsewhere in Portugal, such as Municipal Transfer Tax (IMT), Municipal Property Tax (IMI) and urban taxes.
Land Price
Land prices in the Algarve vary depending on the region and lot area, but with some prior analysis, you will have an excellent investment opportunity on your hands.
Where to start looking? Right here on the
Engel & Völkers Portimão website! Our portfolio includes homes and plots in the Algarve, in Portimão, Ferragudo, Monchique, Mexilhoeira Grande, Praia da Rocha... and much more!