Fancy an authentic taste of Portugal without the midday G&Ts, the golf bores and the grey-socks-and-sandals brigade of the Algarve? While Lisbon vies with Berlin and Barcelona as Europe’s hippest cultural, culinary and clubbing capital, its coastline is upping the ante for those who want real Iberia within easy reach of the city — and reassuringly far from the clichéd Brit-abroad stereotypes.
Well-heeled coastal spots such as Cascais and Estoril, which have been drawing royalty and rich overseas buyers for more than a century, continue to attract an international crowd with their handsome historic properties and architecturally prestigious new developments. “This coast is fashionable, bohemian, aristocratic and cosmopolitan,” says Manuel Neto, managing licence partner of Engel & Völkers estate agency in Cascais. “It’s where the wealthiest Portuguese want to live, so you find the very best properties here.”
Other areas, such as the Douro Valley, on Porto’s doorstep, and lesser-known coastal towns such as Santa Cruz, are entering the fray, too, as boutique developments bring residential luxury to areas of natural paradise.
“Many Britons are investing in these areas because there is a more international community and fewer overdeveloped resorts than in the Algarve. They like the mild climate, value for money and diverse cultural activities that this region offers,” says Tariq El-Asad, director of the property consultancy Tamea International, who is marketing three new beachfront developments
near Lisbon.
Not everywhere in Portugal has weathered the economic storm so well, however. Many of the developments on the Silver Coast north of Lisbon, including Praia d’el Rey, Bom Sucesso and Royal Obidos, have fallen into financial difficulty. “They are now effectively managed by the banks, and there is a large amount of resale inventory on these resorts at knockdown prices,” says Charles Roberts, managing partner at Fine & Country Portugal. “Prices on the Silver Coast have dropped as much as 50%, and there is still no new-build happening.”
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Nevertheless, Portugal’s residential market has, overall, been showing a steady recovery since 2014, partly boosted by incentives such as the Non-Habitual Resident (NHR) tax scheme, which offers zero tax on pensions for 10 years for those who spend at least six months a year in the country.
There’s also the Golden Visa programme, which is enticing wealthy non-EU residents to invest at least €500,000 (£390,000) in property in return for Portuguese residency. Some new developments have been designed with Golden Visa buyers in mind, such as Martinhal Cascais Villas, where fully managed, “totally hands-off” two-bedroom villas start at €650,000 through Fine & Country Portugal and offer a guaranteed 4% rental return (00 351 214 643636, fineandcountry.com.pt).
Tourist numbers in the greater Lisbon area — which includes the likes of Cascais and Estoril — rose by 6.8% between 2014 and 2015. “This is driving demand for real estate, because many
new hotels and developments are targeting the tourist short-rental market,” says Alexandra Cesario, a partner at the Portuguese property advisory service Kleya Premium Living.
Here’s where to find that cocktail of lifestyle and investment, and a coastal escape within easy reach of the captivating capital, which ranks as one of Europe’s cheapest for dining, drinking and cost of living.
GREATER LISBON
You don’t even need to leave Lisbon to find a coastal spot that provides an elegant respite from the metropolis. Lapa, a suburb just a couple of miles from the city centre, has held a magnetic attraction for Europe’s elite for 300 years.
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“British expats have long loved Lapa, as it has always been home to the British embassy. The diplomatic community see it as the ideal address — they can nip east into town for work, and west to the beaches around nearby Cascais for play,” says Nicholas Leach, a founder of Athena Advisers, who is marketing a new development in Lapa that’s proving popular with those from the UK.
So far, three-quarters of inquiries for Conde 35, which features 12 contemporary apartments in a converted period building, have been from UK-based buyers. Prices range from €350,000 to €985,000, and some of the large, light-filled flats have private gardens and views of the River Tagus (020 7471 4500, athenaadvisers.com).
Wealthy Cascais, set on the “Portuguese Riviera” and one of the country’s richest municipalities, has long attracted Europe’s upper crust to its sandy beaches, winding old-town alleyways and historic villas, all within half an hour on the commuter train from central Lisbon.
“It’s basically the Surrey of Portugal, where the cream of Lisbon choose to live, along with a large foreign population,” says Charles Roberts. “It’s not like the Algarve, which is 100% dependent on tourism. It’s a residential area with top international schools and shopping centres, excellent beaches and golf courses, all 30 minutes from Lisbon airport.”
Property prices have fallen 30% since their 2007 peak, “but they have now stabilised”, says Roberts, who has some of Cascais’s grandest homes on his books, including the nine-bedroom Vila Mar, on the upmarket Quinta da Marinha resort. On sale for €15m, the property has views of the Atlantic.
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More affordable options include the latest offering from the developer who brought the five-star Pine Cliffs resort to the Algarve 25 years ago. “Cascais is one of the most picturesque locations on the Lisbon coast, with a rich cultural and historical offering,” says Carlos Leal, general manager of United Investments Portugal (UIP). “It is a coastal resort destination, but also a city and a first-home destination.”
Last month, UIP opened the Sheraton Cascais Resort, which includes a five-star hotel and residences with one to four bedrooms. First to go on sale are three- and four-bedroom properties starting at €995,000 (00 351 21 482 9100, sheratoncascais.com).
Neighbouring Estoril has a similar pedigree to Cascais. “Buyers come from all over the world. The crime rate is minimal, the weather and transport links are excellent. This is the cosmopolitan Riviera,” says Charles Richards, who is marketing Casa Estoril, a six-bedroom historical house near the beach, for €1.75m. It’s within walking distance of Cascais and a 10-minute drive from the “fairy-tale” town of Sintra.
ALCOCHETE
The mighty Vasco da Gama Bridge transports you 17km across the River Tagus from Lisbon to Alcochete, on the edge of the Tagus nature reserve. This is an area of huge horse-breeding estates, sandy riverside beaches and salt pans dotted with wintering birds — look out for migrating storks and flamingos.
“What people love most about Alcochete is that it’s a quiet, beautiful place but so close to Lisbon. They come here for horse-riding and sailing, and British people love it for the climate and sense of peace. It’s also ridiculously cheap compared with the UK. You can easily eat out for €10 a head,” says Cecile Goncalves, owner of the property development company Libertas, whose Praia do Sal project — due for completion in summer 2017 — sits on Moinhos Beach.
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Known as an “ecological resort” (features include extremely energy-efficient Bosch appliances in the properties and an electric-car supply with every parking space), Praia do Sal has a huge saltwater infinity pool and a beach club for residents. The apartments have one to four bedrooms with large terraces and views across the Tagus river, and are priced from €177,000 to €600,000 (00 351 911 012466, tameainternational.com).
There’s more than just lifestyle appeal here: the Setubal province, which includes Alcochete, saw Portugal’s second highest annual house-price growth last year of 7.5%, according to INE, the country’s national statistics institute.
SANTA CRUZ
Drive 45 minutes north of Lisbon and you come to the small beachside town of Santa Cruz, still largely undeveloped and with a charming market that’s a good source of cheap, fresh fish and locally grown fruit and veg. Where once a farm stood, there is now the five-star boutique ecohotel Areias do Seixo, with a cluster of villas in its grounds designed by the Portuguese architect Vasco Vieira. A few hundred metres away, you have the golden dunes and crashing Atlantic waves of Seixo beach.
The villas — which start at €550,000 — are sold off-plan and then built within 12 months. Owners get use of the hotel’s services, with access to the rental programme (00 351 911 012466, joiadasdunas.com).
“Most guests never leave the resort as it’s such a tranquil and beautiful setting. But Lisbon has so much to offer — you can party there and be back in your villa in 45 minutes,” says George Sitwell, business development director of Crossover Capital, the project’s developer, who says he was drawn to the area by “American friends who missed the waves of the Big Sur — and then discovered that this part of the Atlantic coastline is even better”.
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Most of the villas are owned by UK-based buyers, including Rodney Turtle, a 58-year-old marketing director, and his wife, Nora, a consultant psychiatrist from Barnes, southwest London. In 2006, they paid about £400,000 for their three-bedroom villa with a private pool, which they rent out through HomeAway (ownersdirect.co.uk).
“The area is much less spoilt than the Algarve and, though in many ways behind the times, it makes a refreshing change from our urban London existence,” Turtle says. “The local area is great for walks, fantastic for surfing and eating out is cheap. We also have various World Heritage Sites — including Sintra and Alcobaca — within striking distance.”
PORTO/DOURO VALLEY
It took budget flights to unleash the wonders of Porto to a wider audience — Portugal’s second largest city features a charmed combination of a Unesco-protected medieval core of cobbled streets, a huge cultural offering and rich port-producing heritage.
Two-bedroom flats in the city sell for about €200,000, according to Ricardo Alves da Costa, chief executive of the estate agent Luximo’s, an affiliate of Christie’s International Real Estate, while large five- or six-bedroom houses start at €1m.
The opening of the Marao tunnel this month will cut travel time from Porto to the Douro Valley from 90 minutes to an hour. This is already heralding change, with the arrival of luxury hotels such as Six Senses Douro Valley and the region’s diversification away from port into different types of wine. “Tours and hotels are springing up to cater to new tourists,” da Costa says.
Oenophiles can pay a few million euros for a wine estate that runs down to the river’s edge, but those with smaller budgets could opt for a small three-bedroom farmhouse with a boutique vineyard near Peso da Regua, which is on the market for €460,000 through Luximo’s (00 351 224 057008, luximos.pt). The property could be ideal for anyone who wants to kick back and toast the spectacular scenery — and who doesn’t need a tee on the doorstep.
SANTA CRUZ
From €550,000
Soak up the tranquillity of Santa Cruz at Joia das Dunas, a new development of villas linked to a five-star ecohotel set near golden dunes overlooking the Atlantic Ocean. The 18 three-bedroom properties, of which five are still for sale, are built to demand and cost from €550,000 to €790,000; they come with terraces, satellite TV and wi-fi, plus underground parking. Owners get access to the hotel’s services and pool.
00 351 911 012466, joiadasdunas.com
CASCAIS
From €650,000
The 12 two-bedroom villas on the Martinhal Cascais resort are surrounded by two championship golf courses. They are fully managed — the only cost owners must bear is the municipal tax, estimated at €1,500 a year — and come with a guaranteed 4% rental return for a minimum period of six or 10 years, making them an attractive prospect for Golden Visa investors. The resort is five minutes’ drive from the centre of Cascais, and 30 from Lisbon international airport.
00 351 214 643636, fineandcountry.com
Getaways of the week
LAGOON SHOW £4.2m
For the absolute ultimate in tropical luxury, how about a 2.4-acre,palm-covered private island among the perfect white beaches and impossibly turquoise waters of the Bora Bora lagoon in French Polynesia? Buy Motu Haapiti Rahi and you get to live out your very own Desert Island Discs fantasy, but along with eight records and the complete works of Shakespeare, you also get two houses and a dock for your boat.
00 49 4033 8989, vladi-private-islands.de
ORDER A SUNDOWNER €690,000
Surrounded by olive groves, vineyards and woods, this restored four-bedroom villa makes for an idyllic Tuscan escape, just over 100km from the artistic treasures of Florence and a 50-minute drive from Pisa airport. Just outside the historic hillside village of Castagneto Carducci, in Livorno, the home features traditional cotto tiles and wooden beams, and has panoramic vistas over to the sea (a 10-minute drive away), plus a pool.
07944 943007, maureenmele@gmail.com
TEED UP
From €400,000
With more than 20 picturesque courses and 600,000 rounds played by tourists here last year, Mallorca is raising its profile on the golfing map. At the Marina Golf development, next to the Santa Ponsa III golf club, three-bedroom, two-bathroom townhouses start at €400,000, and have use of the residents’ communal pool. Prefer to shop and admire superyachts? Head down the road to the Philippe Starck-designed Port Adriano.
08000 121020, taylorwimpeyspain.com