2025 Expert Guide to Property Renovations in Portugal

Rua da Atalaia. Read blog "Properties In Portugal: With Renovations At Heart", here.

Common Questions About Renovation in Portugal:

    • What permits are required for house renovations in Portugal?

    • How do I find reliable contractors and keep my budget under control?

    • Can I renovate an old property while preserving its historical features?

    • What is the VAT rate for renovation work in Portugal?

    • Is there a specific time of year that’s best for planning renovations in Portugal?

    • What steps can I take to ensure the project stays on schedule?

    • How long does a typical renovation project take in Portugal?

10 Points for Our Investors and Buyers Planning Renovations in Portugal 1. Legal Procedures We help you navigate the legal requirements and permit processes in Portugal, ensuring your property complies with all local regulations and paperwork.

2. Structural AssessmentOnce a building is acquired, our trusted team of professionals conducts inspections to identify and estimate the structural work needed. We prioritize solid foundations to guarantee safety, comfort, and durability in your home. 3. Climate ResiliencePortugal’s long history of climate challenges has fostered innovative construction solutions. We focus on insulation, ventilation, and moisture control to ensure your home supports long-term well-being and remains resilient across seasons.

4. Ebbs and Flows A house is more than a static space—it’s a living organism. We focus on functional design, considering floor plans, daily usability, and modularity. In Lisbon, for example, daylight and airflow are key to creating a healthy and harmonious living space.

5. Sustainable Materials We emphasize sustainability, choosing materials that align with green technology and energy-saving principles. Portugal’s construction culture inherently values long-lasting, resource-conscious design, prioritizing durability over aesthetic trends.

6. A Modern Outlook Upgrading windows is a critical step for energy efficiency, improved insulation, and noise reduction. Our choices combine functionality with aesthetics, offering timeless designs suited to Portugal’s unique climate.

7. Spa-Like Bathrooms Bathrooms are more than functional—they’re sanctuaries. We incorporate natural materials like wood, marble, and stone for minimalist designs inspired by Japanese simplicity and Turkish bathhouse traditions.

8. Kitchen Efficiency An efficient kitchen combines open layouts, clever storage, and sleek finishes. We integrate modern electronic appliances with original property features, creating a blend of functionality and authenticity.

9. High-Quality Materials Portugal offers a diverse range of traditional and modern materials to enhance durability and style. We help you select materials that meet your vision while incorporating personal and cultural aesthetics.

10. Flooring as a Foundation Flooring sets the tone for your home’s interior. We advise choosing materials based on climate, durability, maintenance, and cost. From hardwoods to tiles, the right flooring enhances both practicality and design.

Facts & Figures

The combination of high homeownership rates, escalating property prices, demographic changes, and supportive economic conditions underscores the growing importance of housing renovation in Portugal. 

Official data highlights the critical role of housing renovation in Portugal due to the aging housing stock, limited new construction, demographic shifts increasing demand, and supportive government policies. 

Renovation efforts are essential to improve living conditions, meet housing needs, and achieve sustainability targets. Renovation not only addresses the housing supply gap but also caters to the evolving needs of a diverse and expanding population.

31,700 Portugal has a high rate of homeownership, yet the construction of new housing units has not kept pace with demand. In 2023, the number of new housing permits reached approximately 31,700, reflecting a 5% increase from the previous year. Despite this growth, the supply remains insufficient to meet the rising demand, leading many homeowners to consider renovating existing properties as a practical solution. 

+106%

The Portuguese housing market has experienced substantial price increases over the past decade. Between 2010 and the second quarter of 2024, housing prices surged by over 106%, surpassing the European Union average. This significant appreciation has made purchasing new properties less accessible for many, thereby making renovation of existing homes a more attractive and cost-effective alternative. 

723,215

According to the 2021 Census by the Instituto Nacional de Estatística (INE), Portugal had approximately 5.9 million family dwellings. Of these, 723,215 were vacant, representing 12.1% of the total housing stock. Notably, over 15% of these vacant dwellings required major repairs. Additionally, more than a third (35.8%) of all buildings needed some form of repair:

    • 21.8% required light repairs.

    • 9.4% needed medium repairs.

    • 4.6% necessitated deep repairs.

110,784

The same census data revealed that only 110,784 buildings were constructed between 2011 and 2021, accounting for just 3.1% of the total housing stock. This indicates a slowdown in new housing developments, emphasizing the importance of renovating existing structures to meet housing demand. 

1 Million

Demographic Shifts and Influx of Foreign ResidentsPortugal has seen a notable influx of foreign investors and individuals relocating to the country, including digital nomads, retirees, and those seeking a better quality of life. In 2023, the foreign population in Portugal exceeded one million, more than doubling since 2018. This demographic shift has increased the demand for housing that meets modern standards and preferences. Renovating traditional family homes to accommodate the needs of these new residents has become essential. 

€266 billion

Government programs, such as the Golden Visa and the Non-Habitual Residency (NHR) scheme, have attracted foreign investment, particularly in real estate. Although the Golden Visa program's property investment pathway ended in October 2023, its impact on the housing market has been significant. Additionally, Portugal's economic growth, with a GDP reaching €266 billion in 2023, has bolstered confidence in the real estate sector, encouraging both new constructions and renovations. 

+6%

In the first half of 2024, non-resident buyers accounted for 6% of residential real estate transactions and 10% of the transaction value. The average purchase price for non-residents was €345,000, compared to €198,000 for residents. This trend highlights the growing interest from foreign investors and the consequent need to adapt existing housing to modern standards. 

€143.5 billion

The Portuguese government has recognized the importance of building renovation in achieving energy efficiency and carbon neutrality goals. The Long-Term Strategy for Building Renovation (ELPRE), approved in 2021, aims to transform existing buildings into nearly zero-energy buildings (NZEB). The strategy outlines measures such as creating financial frameworks for renovation, promoting technological innovation, and addressing energy poverty. An estimated investment of €143.5 billion is planned until 2050, with €110.1 billion allocated for residential buildings. 

Source: Reuters, fiec-statistical-report.eu, visao.pt, observador.pt, bportugal.pt, dgeg.gov.pt

Bairro Alto, Lisbon, Portugal. Renovations at Rua da Atalaia. Photos: dandyvagabonds.com

Mojo Real Estate Solutions is an international team of property experts based in Lisbon since 2015. Are your dreaming of renovating a property to meet today’s sustainability standards, working with an architect? Mojo scouts and handpicks properties across all budgets, guiding each investor through the whole purchase process.

Looking for a flat to rent, an eco-project, or a home designed just for you? Mojo renovates, designs, and manages properties for both short-term and long-term rental markets, aiming for optimal yields for investors. 2025 is set to be a game-changer for property investment in Portugal.

Text or call us with any questions:

Portugal: +351.210.509.154

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