You may have noticed if you are looking to buy a property in Portugal’s Algarve region that in today’s market good ones are thin on the ground and prices are escalating, sometimes to ridiculous levels. Although COVID and the war in Ukraine have affected prices for materials, delivery times and availability throughout Europe (which have increased drastically), off-plan projects are still a great alternative. If you have the funds, time, and patience, you can have your ‘dream property’ built to your own specifications and wishes, therefore increasing your options.
The most obvious benefit of buying a plot in Portugal to build or rebuild a house or purchasing off-plan from a developer is price. If you have the courage to build your own place the financial gain is potentially even bigger. Buying an off-plan property from a developer will take away potential headaches and bureaucracy, but at a cost. Either way the price is not as high as buying a ‘used’ property. Other major benefits are that new construction comes with strict regulations for build quality with modern materials and warranties on appliances. Designing your house also affords more freedom and flexibility to personalise your home to your taste and requirements.
To avoid pitfalls, it’s vital to work with a reputable and established developer/ constructor/ architect with a good track record and a portfolio of properties, as well as references to back this up. If you work with your own architect and builder, it will take time to get your project approved by the authorities. Alternatively, working directly with a developer/ constructor who has already gone through this process removes possible headaches. It pays to do your homework to avoid situations like dishonesty, non-compliance with the budget, or bankruptcy bursting your dream-home bubble. Once that is covered you need to allow a timeframe of approximately 18 months for construction.
Off-plan Purchase Process with a developer/constructor
Putting down a 20% deposit is standard to buy an off-plan property in Portugal. That deposit secures the property for you. You will have to sign a contract that outlines a payment schedule for each construction stage, and the final instalment is usually due on completion of the property and exchange of contracts. Togofor Homes can advise you on how the process works with experienced architects and companies. We have a selection of off-plan properties, ruins, and plots of land for sale in the Algarve.
A selection of off-plan properties:
And check also our plots for sale, and land with property for renovation.