There’s a lot to consider when buying real estate. How many rooms do you need, what’s your preferred layout, and what location suits your needs? Sometimes, combining all these elements can be tricky and some compromises may be needed. However, if you want to have it all, buying a plot of land can be the perfect solution for you to have the customized property of your dreams. Portugal Homes has selected some opportunities, so you’ll know exactly where to start.
Advantages of Buying a Plot
Buying a plot of land gives you plenty of possibilities for the future. You can either hold onto it and let its value grow over time or you can build your dream home. You might also plan a holiday getaway for you and your family, or even build a rental property, helping you earn extra income later on. No matter your goal, a plot gives you a blank canvas to turn your wishes into reality while also bringing other benefits:
- Freedom to personalise: Build whatever fits your style, needs, and budget.
- Good value for money: Land is often more affordable than buying an existing home.
- Low maintenance: Empty plots usually have little to no upkeep costs until you build.
- Flexible investment: Use it when you're ready — there’s no rush.
- Potential for profit: As areas develop, the value of your land can rise sharply.
Portugal: A Great Land for Investment
Investing in a plot of land in Portugal presents a compelling opportunity, given the country's robust property market performance. In 2024, Portugal's real estate investment volume surged by 51%, reaching €2.4 billion, with foreign capital accounting for 81% of this total. However, this great surge of interest that the Portuguese market has seen in the past years, has led to a shortage of ready-built homes in Portugal – especially in bigger cities – which is now driving interest in plots.
In Portugal, land can have different types of licenses or classifications, which directly affect what you are legally allowed to build in it – and when. These classifications are critical to understand before purchase, as they determine whether you can construct a home, a business, or even anything at all. Here are the three main types of land classifications and what they mean for the buyer:
1. Urban Land (Terreno Urbano)
This is a type of land that’s already included in the local urban development plan (PDM - Plano Diretor Municipal) and is officially designated for construction.
- You are allowed to build immediately, as long as the project complies with zoning rules, height limits, and local regulations.
- It’s ideal for building a house, apartment block, commercial building, or mixed-use structure.
- Urban lands typically have access to infrastructure such as roads, water, sewage, and electricity, making the development process smoother and faster.
2. Urbanisable Land (Terreno Urbanizável)
This is the definition of a land that is not urban yet but has been designated for future development under the PDM.
- Construction is possible but not immediate — you may need to wait for infrastructure to be developed or for a detailed urban plan to be approved.
- You'll likely need to work closely with local authorities to ensure zoning compliance and participate in infrastructure development costs (roads, sewage, etc.).
- This land can be a valuable medium- to long-term investment, especially in growing areas where urban expansion is expected.
3. Rural Land (Terreno Rústico)
This land is designated for agriculture, forestry, or conservation, and is generally not meant for construction.
- Construction is usually restricted or prohibited entirely, especially for residential or commercial purposes.
- It may be possible to build agricultural support buildings, barns, or tourism-related structures like rural guesthouses, but only with special permits and strict conditions.
- If you're considering rural land for development, it's crucial to check with the local municipality to see if there's any chance of reclassification or exceptional approval.
However, in 2024, the government made an adjustment to the law, allowing some municipalities to more easily reclassify rural into urban lands in some eligible areas. This comes as an answer to the housing crisis in Portugal, the result of the scarcity of property offers in the face of the increasing demand.
Portugal: A Great Land for Investment
Lagos Times 2
In one of the most sought-after areas in southern Portugal, Lagos, you can purchase not one but two plots of land, where you can build two different villas. One can have up to 300m2 of constructed area, and the other up to 109m2, both located only a 3-minute walk from the worldly famous Dona Ana Beach. These plots are buildable and all licenced for habitational purposes with approved projects.
Plot for 8 villas in Caldas da Rainha
This plot extends across 16,029m2 and it has an approved project for the construction of 8 detached houses in Foz do Arelho, Caldas da Rainha. This gives the chance to collect major profit either by selling or renting out the constructed units, that will have an exclusive location, only metres away from the beach and the ocean.
Óbidos Lagoon
On the very first line of the beautiful Óbidos Lagoon, you’ll find this 601m2 plot a house with 2 floors above ground, plus a basement, totalling 365m2 of construction area. The project also features a rooftop terrace, a garden and a swimming pool. This is the perfect opportunity to be around nature and to a more active life.
Peniche Beachside
In Peniche, you can build a 5-bedroom home or two independent units, getting two apartments in a plot that is only 2 minutes by car from Baleal Beach and within walking distance of many essential services.
Condominium Land in Torres Vedras
Secure sea views with one (or more) of 3 plots that are just 800 meters from Praia Azul beach in Torres Vedras, which is only one hour away from Lisbon. Depending on the chosen plot the permitted built area will range from 251m2 to 193m2.
How to Get Access to the Best Plots of Land in Portugal
Discovering the perfect plot of land for you might be difficult from afar. Pictures don’t reveal much, and it takes a lot of imagination to envision if your future construction will fit that location. That’s why it’s important to have a knowledgeable on-site team at your service, that will be able to fully understand your needs and check them against what’s available.
Portugal Homes does that and more, acting not only as a real estate agency but as a local partner. We have access to many other plots and can easily curate a list of listings that will fulfil your criteria, either for investment or for your own future enjoyment.
Let us know what you have in mind below, so we can contact you back with a great solution.
