Unless you've spent enough time in both Portugal and Spain to get under their surfaces you would be forgiven for lumping them together and thinking they were pretty similar. After all, both Spain and Portugal are established favourites with British property hunters, but despite their apparent similarities the Portuguese aren't huge fans of their neighbours and the two countries have distinctly different cultures, histories and lifestyles. So what has Portugal got to offer property seekers?

With its mild, welcoming climate, Portugal offers property owners all the advantages of a sunny country. The coast of Portugal is littered with superb beach resorts with lovely property providing ample opportunities for practising water sports, and also boasts quaint fishing towns and a landscape draped in olive groves. What's more, Portugal boasts 12 World Heritage sites and one of Europe's most attractive capital cities: Lisbon.

These stunning geographic features, combined with the fact that Portugal has maintained the great treasures of a renowned reputation for hospitality and a slower pace of life, have turned the country into a chosen destination for many looking for a holiday, retirement or permanent property to live in. A member-country of the European Union since 1986, Portugal enjoys a steady economic growth but is still one of the most cost-effective countries in which to live in the EU. With food and wine inexpensive, a high quality of life is easily achievable.

It's not hard to see there are many advantages to owning a property in Portugal. For a start, the Iberian country is very accessible, as Nick Freeston, international director at Chesterton, explains: "With an average flight time from the UK of 2 hours 50 minutes, Portugal is easy and quick to reach. This means that second property owners can visit for short periods of time with ease. For those that have relocated, it means that friends and family in the UK are never too much of a distance away". The fact that budget carriers fly to Portugal means that not only is the flight time short, but that it can also be very cheap to reach, too. "For example, EasyJet flies to Faro from Gatwick, Stansted, Luton, Bristol and the East Midlands, Monarch flies some charter flights from Manchester, Gatwick and Luton, and Ryanair flies direct from Dublin", Freeston explains. Barbara Maddison, the UK sales director of Praia D'el Rey Golf & Beach Resort, agrees, adding: "You'll also find an excellent standard of property build in Portugal and if British house hunters are looking for somewhere to invest where they can avoid the usual UK 40 per cent capital gains when they come to sell – the capital gains tax in Portugal is just 25 per cent".

So how does property in Portugal compare to Spain? Well, property in Portugal in most areas remains affordable, with prices usually lower than in Spain. Stricter planning regulations in Portugal mean the overall density of buildings, even on the Algarve, tends to be quite low. In Spain, as the coast has become overdeveloped and overpriced, investors and house hunters have headed inland to find cheaper and more authentic property. Is the same thing happening in Portugal?
 
The Algarve
Mention buying property in Portugal and luxury developments with pools on the Algarve is what comes to most people's minds. Famous as the home of more than 30 of Portugal's 60 plus golf courses, the Algarve is located at Portugal's southern tip and has more than 150 kilometres of sandy coastline. It is a popular destination for tourists and property seekers alike in summer, when average temperatures top 80°F. The most desirable area in the Algarve has traditionally been between Faro, the administrative centre for the whole of the Algarve region, Albufeira, a 'once upon a time' fishing village which has expanded since the 1960s into a major holiday resort, and Loule, a cosmopolitan town with white sandy beaches. Collectively, this is often called the 'Golden Triangle' – and you'll certainly need plenty of gold to buy a property in this area. Indeed, paying 550,000 euros (about £370,000) for a two-bedroom property is not unusual and villas can set you back at least 2 million euros (about £1.35 million). It's almost impossible to find a bargain in these areas, but that doesn't mean that there's no money to be made: villas and apartments in the area are much sought-after – especially during the holiday months so it is possible to make money through holiday lets.

Head inland and you'll find largely unspoilt mountain and valley towns and it is possible to escape the crowds, even in popular towns such as Albufeira and Portimão. The western Algarve has benefited from the extension of the motorway from Faro to the most westerly point of Sagres, a journey that now only takes 90 minutes. As a result, new property developments are springing up on this side of the Algarve in Portugal, with prices about a third cheaper than those in the 'Golden Triangle' areas. The western Algarve – towns such as Lagos, Carvoeiro and Portimão – is a better option if you want to move away from the golf focus of the eastern Algarve. Those in search of a real property bargain in Portugal and who want to turn there back on the tried and tested Algarve and seek substantial capital gains in the process should head inland or north. As a general rule the further north you go, the more traditional and less touristy the towns and villages.

The Silver Coast of Portugal
Property experts in Portugal have been advising clients to look beyond the Algarve, with its pockets of overcrowing, and invest instead in homes 45 minutes' drive from Lisbon on the Silver Coast of Potugal. Maddison says, "The Algarve used to be the most popular area. However, it is now rather overrun with Brits and over commercialised. In other words it is too popular now, with many of those looking to purchase property in Portugal now looking elsewhere."

According to Maddison the Silver Coast is now the up-and-coming area in Portugal for property purchasers. "Many Brits are selling up in the Algarve and moving up to the Oeste Region, which is located just north of Lisbon. This area is still very 'old Portugal', with farming the main source of income for the locals. It does not die in the winter because most of the locals are Portuguese. The cost of property is so in this part of Portugal is much cheaper than on the Algarve – so there is still room to make money in this area", Maddison explains. She adds, "There is no average property price for Portugal because you have three areas that need to be considered: Firstly, the Algarve which equals expensive, secondly the Silver Coast which equals mid-range, and lastly the countryside and Inland where prices are cheap." Maddsion estimates that if you were looking at purchasing a two-bedroom townhouse you could expect to pay 390,000 euros in the Algarve, approximately £220,000 on the Silver Coast and £100,000 inland. 

But what of the place itself? The Silver Coast stretches from Porto down to Lisbon, the capital of Portugal and hugs the North Atlantic coastline; it is home to beautiful beaches, amazing cliffs, quaint fishing villages, lush rolling countryside and some of the most fascinating historic sites in Portugal. Here you can discover pretty villages and a real Portuguese way of life. The Silver Coast is a particularly good bet for those with holiday lets in mind, thanks to the new A8 motorway which has cut journey times from Lisbon to the Silver Coast considerably, opening the atmospheric towns of Caldas da Rainha and Turcifal, and pretty villages, such as Peniche, up to tourists and investors.

There is a wide range of property available on the Silver Coast in Portugal. You can find traditional farmhouses in need of renovation, but there has also been a fair amount of developments popping up and luxury villas with pools and apartments in complexes are easy to find. For example, Praia D'el Rey Golf & Beach Resort is less than one hour from Lisbon, and close to the medieval village of Óbidos. The village is considered to be one of the jewels of Portugal, with narrow winding streets, elegant whitewashed buildings, ancient churches and a magnificent Moorish castle whose high protective walls encircle the town. 
        
Access to the area is becoming even easier as more and more airlines now offer frequent flights to Lisbon. The property at Prai D'el Rey has been built in traditional Portuguese style with quality fittings, well-maintained gardens and traditionally cobbled roads. Prices start from just £135,000 for a one-bedroom apartment and top of the range villas are available for those with a bigger budget.

So, before you overlook Portugal in favour of its Iberian neighbour, bear in mind that Brits who buy property in Portugal are quick to assert that there's little that can
compete with the country. Just don't mention the football!

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For further information about property in Portugal:
Chesterton
Praia D'el Rey
Cushman and Wakefield 
Oceanico Developments 

Related articles about Portugal in Portugal:
Turn to the Algarve for inspiration
Portugal: Lisbon to Porto and the Silver Coast
Top locations to buy property in Portugal

Article published in October 2006