Should You Buy a Renovation Property for Sale in Lagos, Portugal

Everyone knows that buying a house is an expensive process. But if you’re willing to put in the work, choosing a ‘fixer-upper’ could be a smart way to enter the market and find property for sale in Lagos, Portugal at a lower cost. So, what exactly is a fixer-upper? It’s a property that’s priced below market value because it requires repairs, renovations, or updates. These homes often come with great potential but need some extra effort to transform them into your dream space or a profitable investment.

In a competitive real estate market like Lagos, in the Western Algarve, the idea of buying a fixer-upper can be tempting. But is it worth it and right for you? Let’s break down the pros, cons and key factors to consider before making a decision.

The Benefits of Buying a Property in Need of Renovation in Lagos

1. Lower Purchase Price

One of the biggest advantages of purchasing a property in need of renovation is that these properties tend to be more affordable than move-in-ready homes. If you're looking to buy in a prime location but are priced out of modern or fully renovated homes, one which needs some TLC may offer a more accessible entry point into the Lagos property market.

According to Idealista, property prices in Lagos have been steadily increasing, making these properties a more attractive option for budget-conscious buyers.

2. Potential for Added Value

Renovating a home allows you to increase its market value. By upgrading outdated interiors, improving energy efficiency, or restoring historic features, you can significantly enhance the property's appeal and resale potential. Many buyers in Lagos, especially investors, take advantage of this by purchasing older homes and renovating them for long-term appreciation or rental income.

3. Customisation Opportunities

Fixer-uppers give buyers the freedom to personalise the space according to their taste and lifestyle. Whether you want to modernise a traditional Algarve townhouse or add luxury features to a villa, renovating allows you to create a home that meets your specific needs.

4. Investment Potential

Lagos is a sought-after location for both tourists and expats, making rental properties highly desirable. If you’re willing to invest in renovations, you could turn a renovation project into a profitable holiday rental or long-term investment.

Challenges and Considerations

1. Renovation Costs Can Add Up

While the initial price of one of these properties may be lower, renovation costs can quickly add up. Unexpected structural issues, permits, labour and material costs should all be factored into your budget. It’s crucial to get a professional inspection before purchasing to estimate the full cost of necessary repairs.

Standard renovation costs typically range from €1,000 to €1,500 per square meter for standard updates, depending on the size and complexity of the project. Factors like labor rates, material quality and regional variations can also influence the final price

2. Permits and Legal Considerations

Portugal has strict renovation and building regulations, especially for older or historic properties. If the home is in a protected area, you may face additional restrictions. Always check with local authorities and consult a property lawyer to ensure you understand the legal requirements before starting renovations.

3. Longer Timeline for Move-In or Return on Investment

Renovations take time and delays are common due to material shortages, contractor availability, or unexpected repairs. If you need a home ready to move into quickly, a fix-up home may not be the best choice.

4. Potential Hidden Issues

Older properties may come with hidden problems such as structural damage, outdated plumbing, or electrical issues. A thorough property survey and expert consultation can help you avoid costly surprises.

Key Tips for Buying a Renovation Property in Lagos

- Work with a trusted real estate agent who understands the local market and can help you find a property with good renovation potential.

- Get a professional property inspection to identify potential issues before purchasing.

- Understand renovation costs and legal requirements before committing.

- Consider financing options, as some banks in Portugal offer renovation-specific mortgage products.

- Hire reputable contractors and architects familiar with the local building regulations.

Final Verdict

Buying a fixer-upper in Lagos, Portugal, can be a great investment if you have the right resources, budget and patience for renovations. It offers the opportunity to create a personalised home while potentially increasing its long-term value. However, if you prefer a hassle-free purchase or want to avoid the complexities of renovations, a move-in-ready home may be the better option.

Before making a decision, consult with real estate experts, legal advisors and contractors to ensure you're fully prepared for the renovation process. With careful planning and the right support, a fixer-upper in Lagos can become a rewarding and valuable property investment.