With thousands of empty and deteriorating homes across Portugal, remodelling existing properties has become a viable solution to the housing shortage while also significantly increasing property values.

According to the 2024 residential report by idealista, a full renovation can boost a property’s sale price by up to 30%, making it a lucrative option, especially in high-demand areas like the Algarve.

The recent report highlights that fully refurbishing a deteriorated property in Portugal can increase its value by over 25%. Specifically, the highest appreciation is seen in 1-bedroom (26.6%) and 2-bedroom (29.9%) apartments, while 3-bedroom homes gain 25% and studio flats 23.4%. Even larger properties (4 bedrooms and above) see an average increase of 20%.

The Algarve, along with Lisbon and Porto, leads in post-renovation value appreciation, with 2-bedroom apartments increasing by 30%. For example, a neglected 2-bed flat or townhouse valued at €200,000 could be sold for approximately €260,000 post-renovation in Faro or Lisbon.

But renovation isn’t just about aesthetics; it’s also about sustainability In 2024, over 4,400 home renovations in Portugal received energy performance certificates, with more than 60% achieving the highest ratings (A or A+), further enhancing their market appeal.

Buying an older property in the Algarve and modernising it can be an excellent way to enter or expand within the real estate market. The combination of strong demand, a dynamic housing market and high post-renovation value makes it an attractive option for both personal use and investment.

With increasing interest in upgraded homes, now is the perfect time to invest in the Algarve’s transformation. Consulting a local estate agent, such as Algarve Home Sales, ensures access to the best opportunities, expert guidance on regulations, and a smooth renovation process. Contact us now.