Alentejo is a vast region located south of Lisbon, north of the Algarve. The eastern border of Alentejo is the Spanish regions of Extremadura and Andalusia. Visitors are coming to region to find the beauty of unspoiled natural landscapes. They are also coming to Alentejo to enjoy the authenticity of the local culture, gastronomy, and beaches.
So far, investors have focused on investing in Lisbon, Porto, and Algarve.
In 2023 Real Estate investors are turning their attention and money to Alentejo with a strong focus on the coastal part of Alentejo.
As a result of that strong interest, real estate prices went up by 22% in 2022. The coastal part of Alentejo is now a hotspot for international A-listers. They are looking for outstanding landscapes, good taste, and simple luxury. They are also looking for privacy away from the crowds. If people go to Saint Tropez to attract cameras, they come to Alentejo to run away from them.
Why investing in Alentejo real estate?
With 27,000 km² and a density of 19 inhabitants per KM2, Alentejo is a vast and very calm area. As a comparison, Paris has 20754 inhabitants per km2. There is a lot to do and to see in Alentejo. Local human history can trace back thousands of years before our era. Monuments such as the Cromeleque dos Almendres (6000 BC) are the witness of that past. The temple of Evora, or the ancient town of Miróbriga, is part of a well-preserved Roman legacy. The myths and legends of these ancient ages have created a unique culture and heritage. Alentejo is a part of Portugal that has not been subject to the outrages of mass tourism. The land and coast is mainly unspoiled. Because we are focussing on the best place to buy in Alentejo in 2023, we will focus on the coast of Alentejo. We will start with the hotspots of Comprota, Melides, and Porto Covo.
The Coast of Alentejo, strong potential for investors/ Alentejo Portugal Real Estate
The coast of Alentejo is stunning. It starts south of the river Sado and goes down to Zambujeira in the south. The coast begins on the bank of the river Sado. On one side of the river, there is the Troia peninsula. On the other side of the river is the impressive Parque Natural da Arrábida, with its 500-high cliffs overlooking the blue ocean. The landscape is stunning, highly dramatic, and energizing. Looking at the Troia peninsula from the Parque Natural da Arrábida is spectacular.
From the high ground (up to 500 M), you can see the golden sand banks of Troia and all the coastline melting away on the southern horizon. Crossing the river with a ferry in Setubal begins an exciting adventure. The journey from Comporta to Zambujeira do Mar can take 1h30 by car. It can take much longer if you want to explore the coast in detail. The landscape is almost intact. The lack of investment in tourism has preserved it. For a long time, the littoral of Alentejo was home to wildlife, fishing communities, and farmers. In the last few years, things have changed. More and more celebrities are buying real estate in the region. They are buying land in one of the last natural paradises in Portugal. Projects such as Costa Terra are driving more and more A-listers. They are also driving the price of real estate up in all the regions. As the prices in Comporta village rise, people are moving south. The new frontier of that eco-luxury tourism is Melides.
The next frontier will likely be Vila nova de Milfontes. From Troia to Comporta, the land is relatively flat. Things change with the Sierra de Grandola. The hilly landscape offers some of the best sea views in the region. The same applies near Melides. Finally, the high hills between Santiago do Cacem to Sonega and Cabeça da Cabra can offer amazing views too. It is still possible to buy stunning land with an unspoiled sea view. These are great investments.
Moving south of Melides on the coast is the highly industrial town of Sines. Sines is home to a large industrial complex. It has a deep-water port, the closest European port to the USA. The old city of Sines is very pretty but needs urgent modernization. It also needs to reconcile the two sides of its personality. Sines needs to reinvent itself.
When heading 10 minutes south, you reach Porto Covo. At Porto Covo is the door to the Parque Natural do Sudoeste Alentejano e Coasta Viecentina. Once in the park, there is a sense of erupting on the other side of the world. The southern point of the park is Burgau in Algarve. The parc is the best-preserved stretch of the Atlantique Coast in southern Europe. It is home to rare and fragile wildlife. The park is the only place where white storks nest on cliffs. You can also find rare fishing eagles and otters (to name a few). Because of its incredible biodiversity, the park is a world-class scientific laboratory. What is striking is the abundance of land for sale with sea views. You can even find an old farm to renovate with a sea view. They bargain property for sale in Alentejo. You can even find relatively cheap property in Portugal by the sea.
Investing in Comporta & Melides
The case of Comporta & Melides; Over the years, A-listers and celebrities have kept a secret. Comporta and Melides are a big part of Alentejo Portugal Real Estate success. That secret is Comporta and its golden bleu coast going south to Melides and beyond. It is easy to understand that lovers of that area are trying to protect it from mass tourism. Mass tourism would be the end of the dream of Comporta. It would turn Alentejo into another touristic destination. The priceless luxury of Alentejo is intimacy and privacy with nature. Here the landscape is rich and colorful. It is unique with its turquoise ocean waters, dunes, forest, and rice fields. The constructions in the area are low and almost invisible. Like mineral chameleons, they blend into the landscape. They complement it and don't destroy it. Local architects are using traditional materials. The result is an unpretentious and instinctive villa offering the highest comfort level. Comfort and discretion are essential as the area is home to the world's rich and famous. The list of high-profile homeowners or visitors is impressive. Madonna, Jack Bezos, George Clooney, Sharon Stone, Monica Bellucci, Carla Bruni, Nicolas Sarkozy (not to mention you). The region has plenty of discreet and discerning celebrities. Another sign that the area is unique is the presence of world-class designers, including Jacques Grange, Philippe Stark, and Christian Louboutin.
Real estate prices in Comporta are between 4000 and 16000 per m2. Purchasing a home to renovate in Comporta or Melides could be a wise real estate investment in Portugal. One of the reasons why investing in Comporta or Melides could pay off is that it is unlikely the region will be transformed into another tourist hotspot. Comporta Melides region's DNA is beauty, simplicity, and discretion.
Investing in Alcacer do Sal
The investment opportunity in the Alentejo littoral is wider than Comporta, Melides, Porto Covo, or Villa Nova de Milfontes. Some of the best places to invest in Portugal for foreigners are located in Alentejo. Well-priced property within 35 minute drive from the coast can be an excellent investment. The price of the real estate on the littoral went up 22% in 2023.
Buying in Alcacer do Sal/ Santiago de Cacem/ Cercal or the cute village of Sao Domingos could be great investments. As everywhere in the region, prices are rising fast, but you can still find outstanding buying opportunities.
One of the very hot spots for investors in the Alentejo Littoral is Alcacer do Sal. Alcacer is one of the most picturesque towns in the region. It has a population of approximately 11k people. The city is on the banks of the Sado River and is nested on a cliff. In front of Alcacer is a rice field landscape changing colors across the seasons. Alcacer skyline is dominated by its old castle, its church and an old brick chimney, and countless white buildings.
Alcacer do Sal is an old town; its names derive from the Arabic Al Qasr: the castle. Al Caser Do Sal is the door to Southern Portugal.
Portuguese buyers have targeted Alcacer for years because the city is a crossroad between Lisbon and Comporta. It takes about 1-hour drive to get to Alcacer from Lisbon. It takes about 25 minutes to get from Alcacer do Sal to Comporta. You can spend the day at the beach and enjoy the small restaurant of Alcacer in the evening. Properties for complete renovation are for sale @ 905 euros per m2. Properties in good condition can be purchased for around 5000 euros.
Is buying real estate in Grândola a good idea?
South of Alcacer do Sal is the city of Grândola. The city has very high symbolic importance for Portugal. Grândola is 25 minutes from Comporta and one hour and 20 minutes from Lisbon—the council of Grândola with its population of 15K inhabitants. The city has shops such as Continent, Intermarché, DIY Supply, etc. In Alentejo, you will not find (for now) any fancy shops, not even a Zarra home or a Massimo Dutti. You will not find a local branch of Chanel, Dior Louis Vuitton. That being said, you can always stop in Melides to ask Monsieur Louboutin for a pair of fashionable flipflop. Grândola has given its name to the song broadcasted to signal the start of the 1974 revolution. The song's lyrics present Grândola as a city governed by its people—a place where everybody is equal and friends. Recorded in France in 1971, the Estado Novo regime censured the song as it promoted leftist ideas. The song has historical value. It is part of the precious cultural heritage of Portugal.
The emblematic armored vehicle "Bravia Chaimite" used during the 1974 coup is stationed at the city's entrance. With democracy, time, and many investments, things have changed. Today the local authorities of Grândola oversee the planning permission for all the urbanism projects, including Comporta. Some projects in the Comporta area are creating economic and environmental controversy.
Comporta was an immense agricultural estate the Espírito Santo family owned. The Espírito Santo family is a dynasty of Portuguese Bankers with strong connections with other rich and powerful families. Comporta became a jet-set playground because the Espírito Santo family was inviting friends there. Among the friends was the Prince Albert of Monaco but also Caroline of Monaco, the Queen of Jordan, Noor Al Husein, and many more.https://www.reuters.com/article/us-portugal-espiritosanto-family-idUSKBN0GT0R320140829.
The list of rich and famous people owning property or visiting Comporta is impressive. So far, this is one of the best-kept secrets of Portugal and Europe.
Today, the local authorities of Grândola are challenged to keep some of the revolution's ideals alive while facilitating the area's economic development. There is also an environmental concern as eco-luxury development is not painless at all for nature. Alentejo is an arid region with a chronic water shortage. The multiplication of golf courses in the area is a legitimate concern.
The high price of real estate near the sea is pushing more and more "normal" people to Grândola/ or Alcacer. That housing pressure is pushing the prices up. It is still possible to bag some bargains for buildings needing complete renovation. The surroundings of Grândola are very pretty. The drive to Comporta is breathtaking. The Sierra de Grândola (342 m) offers some outstanding ocean views. It is possible to find some Gems there, but like in all the littoral of Alentejo, the prices are going up fast. You can find properties for renovation near Grândola for 1000 euros per M2.
Sines Portugal Real estate: should you invest?
South of Melides and 10 minutes drive from Santiago de Cacem is the port city of Sines.
The port of Sines is 3273 nautical miles from the USA. It takes about 13 days to complete the Atlantic crossing by sea. This short transit time and the strategic location of Sines make it a true industrial asset for Portugal and for the Iberian Peninsula. You notice the city's presence from miles away as the monumental refineries chimney corner the town of Sines on all sides. The port infrastructure is growing, and this will remain the same. The industrial Sines will keep on growing. The impact of that growth on the landscape can be highly off-putting for visitors, but they are a few positives too. The town is the birthplace of the great navigator Vasco de Gama. The town center is pretty; it has a medieval castle with fantastic views over the sea. From the ancient walls of the castle, you can see the coast from Sines to Porto Covo and beyond. There is a strong need for investment in Sines, but the potential exists.
The town has plenty of beautiful buildings that could be renovated and offer a fantastic home. Sines is right in the middle of one of the most beautiful coasts of Europe, so is the city a complete write-off? The prices of real estate in Sines can be relatively low. Beautiful and renovated homes can start from 1940 euros per sm2. Homes for total renovation currently start at 952 euros /sm2. Sines is, of course, a big industrial center on the coast. Despite its international position as a major industrial port, the city is old and beautiful but a bit sad too. Sines has an identity crisis to resolve. It could be reinvited, but for now, it is still awaiting the kiss of life.
Is buying in Santiago do Cacém a good investment?
The ancient city of Santiago do Cacém is one of the best-kept secrets of Alentejo. Today in 2023, the town is a sleeping beauty. It is a treasure that is hidden in plain sight. Like a Queen, the church of Matriz crowned the city (1830). and the walls of the old castle that dominates the surrounding area. The streets below the castle are full of old mansion houses, palaces, and magnificent buildings. The history of Santiago do Cacém is ancient and started long before the Roman occupation of the peninsula. You can visit the remains of the old Roman city of Miróbriga just one kilometer from the center. The remains are well preserved and testify to the importance of place for Romans.
The city is stunning, and a walk in the old town will reveal a genuinely prestigious past of Santiago do Cacem. What is very strange about the town is that it takes a long time and research to understand why the city was so opulent.
The streets of the old town are full of old mansions. This type of building is called Palacio, palace, or solar in Portugal. The most famous estate of Santiago do Cacem are
Palácio da Carreira, Casa Condes do Bracial, Palácio dos Condes de Avillez. Other key elements of the local heritage are the churches of Matriz de Santiago do Cacém; (1830) and the church da Misericórdia de Santiago do Cacém (1769)
From a property investor's point of view, the city is full of opportunities. The prices have gone up dramatically over the last few years. Today, purchasing outstanding properties for as little as 700 euros per m2 is possible. Off course, these will need complete renovation. They are some genuinely impressive buildings coming to the property market from time to time. Securing the right property at the right price is a matter of patience. Another significant factor is understanding of cost and difficulty of renovating.
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