A note from Steve
A buyer I'm working with had good news this week: his bank approved the mortgage. Then the bank came back with a question. The building area on one official document doesn't match the area on another. The lawyers are on it, but this is the kind of detail that can hold up a deed for weeks.
I see it most with resale homes built 20 or 30 years ago, extended over time and never fully updated on paper. Those are also the homes where buyers have the most room to negotiate right now, because new builds keep getting more expensive to make. The Number explains why, and the Tip below covers how to protect yourself before you sign.
Steve
Lagos at a Glance
This week | Change | |
|---|---|---|
Median sale price (INE) | €3,855/m² | = flat · Q1 2026, latest |
Asking price (idealista) | €4,655/m² | = flat · Aug, latest |
Homes for sale | 2,053 | ▼ 1.0% · vs last week |
12-month Euribor | 3.19% | ▲ 0.01 pts · vs last week |
£1 in euros | €1.19 | ▲ 0.3% · vs last week |
$1 in euros | €0.89 | ▼ 0.2% · vs last week |
Sources: INE, Idealista, Euribor (EMMI), ECB.
A quiet week: slightly fewer homes listed, the pound a touch stronger, Euribor flat. No reason to rush, and none to wait.
The Number: +7.5%
How much more it cost to build a new home in Portugal in August than a year earlier (INE). In July the rise was 6.5%.
Builders are paying more for both workers and materials, and that money ends up in the price of new homes. At the same time, Algarve home sales fell 12.4% in the second quarter. So the market is splitting in two: new builds have little room to come down, while resale sellers are competing for fewer buyers.
What I'd do with this: if you're buying, don't expect big discounts on new-build or off-plan homes. Developers' own costs are still rising, and most would rather wait than cut. The room to negotiate is more likely on resale homes that have been on the market for a few months, especially ones that need some updating. Do the sums side by side: the resale price you can agree, plus the cost of the work, against the new build down the road. And on older homes, check the paperwork with extra care (see the Tip).
Sources: INE construction cost index for new housing, August 2026, via The Portugal News, 10 October 2026; INE Q2 2026 transactions, via The Portugal News, 22 September 2026. General market commentary, not financial advice.
Listing of the week
Steve's Tip
Know what your CPCV deposit commits you to.
The CPCV is the promissory contract you sign before the deed, usually with a deposit of 10% to 20%. Under Portuguese law, if you walk away, you lose that deposit. If the seller walks away, they owe you double. So before you sign, ask your lawyer to write in the conditions that matter to you, such as mortgage approval and paperwork that matches the house. Without them, a problem that isn't your fault can still cost you the deposit.
General information, not legal or tax advice.
Also this week on the blog: Portugal's 2027 State Budget: What It Changes for Property Buyers in Lagos →
What are you really looking for?
If you're planning a move or a second home here, send me your brief: the towns you like, your budget, bedrooms, must-haves and deal-breakers. A rough version is fine.
I'll come back with what that money really buys right now, resale and new build side by side, and where I think there's room to negotiate. I read and answer every one myself.