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How Much Doest it Cost To Build House In Portugal?

Reema Bharti

Reema Bharti

· 6 min read

Building a house in Portugal is a dream for many people.

Key steps to build a house in Portugal include securing land, understanding regulations, and choosing builders.

The cost of building a house in Portugal can vary based on factors such as location, size, materials, and specific design choices.

As of 2024, with Portugal's housing market evolving and construction trends shifting, it's important to consider current economic conditions and real estate dynamics when estimating the expenses involved in creating a new home. 


Average Cost To Build a House in Portugal  

The average cost to build a house in Portugal is $600 per square meter. Over the years, due to inflation, the prices have gone up. Similarly, the prices of land, labor, and materials have increased. So, the total cost of it also gets affected.

There are other factors as well that affect the cost of building a house. Factors such as the method of construction, the location of the building, and the design of the building are the major factors that decide the total cost of the house.

Having an estimate can help you make sure that building a house in Portugal is within your budget. The cost of materials when building a home in Portugal is a major expense. 

Bricks, cement, steel, wood, roofing materials, windows, doors, electrical, plumbing, and insulation are a few of these. Because of changes in the market and the cost of transportation, the price of these commodities can change.


Different Types of Costs to Build a House in Portugal

Different types of costs to build a house in Portugal are Land, Labour, Materials, Permits, and Taxes. More about these expenses are explained below.

Building a dream home in the beautiful landscapes of Portugal is an aspiration for many, but it's essential to understand the financial aspects that come into play. The land cost is the primary consideration, varying significantly based on location, from the tranquil countryside to the vibrant coastal regions. Labor costs, while competitive, depend largely on the project's complexity and the expertise required. Materials, another significant expense, range from traditional Portuguese styles to more modern finishes, affecting the overall budget. 


Portugal's land amounts, on average, €2,500 per square meter. Potential investors are drawn to the development opportunities that these places provide. 

Finding land to build a house in Portugal varies by region. Coastal areas and cities tend to have higher land prices. Researching different areas can help find more affordable options. Working with a real estate agent familiar with the local market can be beneficial. They can assist in finding suitable land within your budget and desired specifications.


In Portugal, labor is a major cost while building a home. The size, complexity, and time frame of the project all affect how many workers are needed. It is advisable to discuss the number of workers required within your budget with your contractors. Construction workers in Portugal make, on average, $10 to $13 per hour. 


When building a house, correct materials must be available for a proper building. The cost of building can be considerably influenced by the quality of the materials utilized. 

High-quality materials may initially cost more, but they can save money over time by requiring less care and extending the life of the structure.

Materials to build a house in Portugal vary based on preferences and budget. Concrete is popular for its durability and thermal properties, ideal for the region's climate. Brick is also widely used, offering strength and insulation. Wooden elements are often incorporated for aesthetics and flexibility in design. Additionally, tiles are prevalent for roofing and flooring due to their heat resistance and traditional charm.


In Portugal, building permits are a significant component of building expenses. In order to protect one's interests and ensure compliance with local building standards in Portugal, it is necessary to engage legal assistance during a construction project. 

The cost at which a house may be built in Portugal is reliant upon how complicated the project is. You must have a proper building permit to prevent any legal issues.

To apply for a permit, you will need to submit a project description, architect's report, plans and drawings, and certificate of ownership are also responsible for submitting the engineering projects to the City Council for approval. Once this has all been submitted, the City Council will then issue a building permit

Building a house in Portugal requires obtaining a construction license (building permit) from the local municipality.


When you have the residential license, you have to register the property with your local tax office. Tax payment is one of the important steps that must be taken before building a house in Portugal, including obtaining the necessary building permit and understanding Portuguese home-building regulations.

Cost Differences Between Urban and Rural Areas 

Building a new home can be more affordable in rural places while urban centers and upscale neighborhoods are more expensive.

The area is a major factor that determines the cost of a house. Urban areas are costlier than rural areas. This is majorly due to the difference in the facilities available in the regions. Urban areas have a better locality where all the facilities like hospitals, markets and schools are nearby and provide a good quality of life.

Whereas in the rural areas, there is a lack of facilities and hence the expenses are less. Big urban centers and high-end areas are more expensive, whereas in rural areas you can spend less money to build your new home.


Tips for Budgeting To Build a House In Portugal

Tips for budgeting to build a house in Portugal are choosing the right location, planning the design, getting many quotes, energy efficiency consideration, preparing for unexpected costs, and monitoring expenses closely.

One should obtain multiple quotes from reputable contractors to ensure competitive pricing.

Consider the location and size of the property when estimating expenses. It's also wise to budget for unexpected expenses and contingency funds to cover any unforeseen costs.

Explore financing options such as mortgages or construction loans. Additionally, prioritize essential features and consider alternative materials or designs to save on expenses without compromising quality.

Choose the Right Location 

Choosing the right location matters when building a house in Portugal. The location of a building adds to the total cost of a house in Portugal. Living in urban areas is costlier than living in rural areas. An area where facilities like hospitals, markets, and schools are available nearby is the best area to live in Portugal.

Plan Your Design 

Plan your design properly for a smooth construction process. The contract must include a detailed building description and a list of the materials, the exact area and orientation of the building, the building and payment schedule, a penalty clause for late completion; the retention of a percentage of the building costs as a guarantee and how disputes will be settled.

Get Multiple Quotes 

Make a list of everything that needs to be done so that all the proposals include the same items and ensure that nothing is omitted from the quote. Ensure the company you select has fixed prices to prevent budget deviations. This will help you avoid going over budget in the event of delays.

Reach out to several quotes and then compare which one will be better for you. Shortlist at least two quotes for the final selection. A written quotation will also ensure security for you. 

Energy Efficiency 

Energy efficiency is important when building a house in Portugal, or remodeling an existing one to become more energy-efficient, entails selecting thermal insulation materials for the walls, ceilings, doors, and windows in addition to employing electricity storage devices and renewable energy sources like solar panels.

You can incorporate energy-efficient LED light bulbs, conscientious appliances, and intelligent control systems that maximize energy usage are among the technological remedies available.

Prepare for Unexpected Costs 

Unexpected costs always arise, even in cases where the project has a set price. Perhaps you decide to make adjustments to your project, opt for more expensive building materials, or the job takes longer than expected, forcing you to rent a home for your family. It's wise to set away money for unforeseen circumstances like this.

Therefore carefully plan and be ready for the unexpected amounts that can come on your way for a new build.

Monitor Expenses Closely 

Keep a proper track of your expenses for the architectural project. A detailed breakdown of the building works along with a list of the materials according to the architect's plans under the legal system to ensure the construction and security of your dream home.

The whole process of building your new house or property requires planning permission from a city council and a construction license. All such construction methods must be monitored well.


Things to Keep in Mind While Building a House in Portugal

The things that you need to keep in mind when building a house in Portugal are construction methods, project description, and engineering, local council, legal fees, topographical survey, detailed breakdown and written quotations, payment schedules, construction and technical details, structural defects, and personal taste.

It is crucial to familiarize yourself with zoning laws and construction permits required in the area.

You should also consider the climate and choose materials and designs suitable for Portugal's weather. Ensuring proper insulation and ventilation is essential for comfort. Additionally, hiring reputable contractors and overseeing the construction process closely ensures quality and timely completion. Here are a few key points you should remember before building a house in Portugal. 

1. Construction Phases and Methods: Familiarize yourself with the different construction phases and methods involved in building a house. Understanding the process will help you plan effectively and make informed decisions.

2. Project Description and Engineering Projects: Clearly define your project description and enlist the help of an architect to create architectural and technical plans. Consider hiring an engineer for more complex engineering projects.

3. Local Council and Planning Approval: Consult with the local council to obtain planning approval for your project. Adhering to Portuguese law and regulations is essential throughout the entire building process.

4. Legal Fees and Purchase Contracts: Budget for legal fees, including drafting and reviewing purchase contracts. Seek legal advice to ensure all necessary information is included and that your rights are protected.

5. Topographical Survey and Architect's Report: Conduct a topographical survey to obtain accurate information about the land. Additionally, request an architect's report detailing the feasibility and requirements of the project.

6. Detailed Breakdown and Written Quotations: Obtain written quotations from reputable contractors and suppliers. Ensure there is a detailed breakdown of all costs involved, including construction, materials, and any additional expenses.

7. Payment Schedule and Termination Guarantee: Establish a payment schedule that aligns with the progress of the construction work. Also, ensure the contract includes a termination guarantee to protect your interests.

8. Construction and Technical Details: Oversee the construction process to ensure that it is carried out according to the approved project and technical plans. Regular communication with the project manager and contractors is essential.

9. Structural Defects and Warranty: Upon completion, thoroughly inspect the house for any structural defects. Ensure you have a warranty that covers any potential issues that may arise in the future.

10. Personal Taste and Living Abroad: Incorporate your taste and preferences into the design of your dream home. However, keep in mind that if you are living abroad during the construction process, effective communication and project management are crucial.

Frequently Asked Questions 

What is the average cost to build a house in Portugal per square meter?  

The average cost to build a house in Portugal is $600 per square meter.

What factors can affect the cost of building a house in Portugal? 

Factors can affect the cost of building a house in Portugal Land, Labour, Materials, Permits, and Taxes

Can I get an estimate for building a specific type of house in Portugal? 

Yes, you can estimate the cost of building a specific type of house in Portugal. The estimate is around $500 to $600.

How can I keep costs down when building a house in Portugal? 

You can keep costs down when building a house in Portugal by choosing a locality where the land is cheaper and every basic facility is available nearby. You can also minimize labor and design expenses.

Is it cheaper to buy an existing home rather than build one in Portugal?

Yes, it is cheaper to buy an existing home rather than build one in Portugal.

Reema Bharti

Reema Bharti

I am a globe-trotter with a passion for exploration. From the sun-kissed coasts of Portugal to the snow-capped peaks of Switzerland, my travels are as diverse as they are inspiring. My journeys through Spain, Finland, Austria, and Germany have fueled my soul and shaped my writing.