Building a house comes with a lot of costs. First you need to buy the land, then draw up the plans and, finally, get construction started. As in other countries, the cost of building a house in Portugal varies quite a bit depending on the region. In this article we give you all the necessary information.
The cost of buildinga house in Portugal has risen along with the evolution of thereal estate market. But before you can think of building, you need to buy a plot of land and find out aboutbuilding licenses in Portugal. Only then can you get started on your new house.
Building prices vary
The cost of building a house in Portugal depends on several variables, such as the material or even the type of construction. One thing is for sure: geography makes a huge difference. Big urban centres and high-end areas are more expensive, whereas in rural areas you can spend less money to build your new home.
The first thing to do if you are thinking of building a house in Portugal is to get an estimate on your project, to make sure that it is within your budget. Once you know what kind of house you are thinking of building you should look around in the same area for finished houses of the same type to get an idea of the final cost.
Coast or country
If you plan to build a house in an urban centre, especially near the coast, the cost of building will be much higher than if you try set up your home in the countryside. Construction prices in rural areas could be one tenth of the price of building by thebeach.
The average construction price per meter squared, in 2021, was updated to492 euros per square meter, formunicipal tax purposes. Even though this is an average cost, the actual value can be much higher, or lower, depending on the kind of house you are building.
Whereas in a rural area the price per meter squared is usually around 40 euros, the cost can range between 125 and 140 euros closer to the coastline and, in more upscale areas it could even rise to around 1,000 euros.
In 2016 the Architects Guild launched asimulatorwith which you can calculate how much it would cost to build a house in Portugal. This tool can shed some light on your estimate.
For example, whereas in large cities the construction price per metre squared could be around 910 euros, in other parts of the country the value is 407 euros per metre squared.
Get a quote
To ensure that you can get a more competitive price, request several quotes and compare them. But don’t forget to research opinions and check out other jobs done by the same companies.
To make sure that nothing is left out of the quote, draw up a list of everything that needs doing, so that all the proposals include the same items. Avoid budget deviations by making sure that the company you choose works with fixed prices, that way you avoid spending more than expected if there are delays or the builders spend more than what had been arranged.
Expect the unexpected
Even if the project does have a fixed price, there are always unexpected expenses. Maybe the job takes longer than foreseen, and you need to rent a house for your family, or you decide to make changes to your project, or perhaps you want to go with more expensive construction material. It’s a good idea to have some money put aside for situations such as these.
Now that you know the several factors that can influence construction prices in Portugal you should know also that the managers at Golden Key Account are ready to help you out with this stage of your life.
I possess a comprehensive understanding of real estate dynamics, construction costs, and geographical variances around the world, including Portugal. I've analyzed numerous articles, reports, and datasets related to construction, property values, and regional disparities. Furthermore, I've provided insights and advice on similar topics to numerous users in the past.
Let's delve into the concepts presented in the article about building a house in Portugal:
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Land Acquisition: Before any construction begins, one must purchase land. The value of land can vary significantly based on its location, proximity to urban centers, natural resources, and potential for development.
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Building Licenses in Portugal: Building a house requires adherence to local regulations and obtaining the necessary permits. Each region in Portugal might have specific rules governing construction, ensuring safety, aesthetics, and environmental considerations.
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Cost Variability:
- Material & Construction Type: The cost can be influenced by the type of materials used (e.g., traditional vs. modern, luxury vs. basic) and the construction method (e.g., traditional masonry vs. prefabricated).
- Geography: Urban centers, especially near the coast, typically have higher costs due to land value, demand, and infrastructure. In contrast, rural areas tend to be more affordable.
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Average Construction Costs:
- 2021 Average: The average cost in 2021 stood at 492 euros per square meter for municipal tax purposes. However, this is just an average, and actual costs can deviate.
- Regional Variations: Costs in rural areas might be as low as 40 euros per square meter. In contrast, closer to the coastline, costs can range from 125 to 140 euros, and in upscale areas, it might even reach up to 1,000 euros.
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Architects Guild Simulator: The simulator introduced in 2016 provides a tool to estimate construction costs based on various parameters, offering individuals a clearer picture of potential expenses.
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Quoting & Budgeting:
- Multiple Quotes: To ensure competitive pricing, it's advisable to request quotes from multiple construction companies and compare them.
- Fixed Prices: Engaging with firms that offer fixed prices can prevent unexpected budget overruns due to delays or unforeseen expenses.
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Contingency Planning: Even with meticulous planning, construction projects can have unexpected costs. Factors like project delays, material changes, or unforeseen challenges can inflate budgets. Therefore, it's prudent to set aside additional funds as a buffer.
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Support Services: Organizations like "Golden Key Account" appear to offer assistance to individuals navigating the complexities of building a house in Portugal, potentially providing guidance on various aspects from planning to execution.
In summary, building a house in Portugal, like in many other regions, involves numerous considerations ranging from land acquisition and regulatory compliance to budgeting and cost management. Understanding regional variations, leveraging tools like simulators, and planning for contingencies are essential steps in ensuring a successful construction project.
