Buying off-plan — purchasing a property before it is built — is common in Portugal, particularly in Lisbon, Porto and the Algarve. It can offer real value, but the buyer carries risks that do not exist on a finished home. This guide focuses on those risks and on the checks to make before you commit.
Potential Benefits of Off-Plan
- Lower entry price compared to completed properties in the same development
- Capital appreciation before you even complete (if the market moves in your favour)
- Ability to customise finishes and layouts in some projects
- New-build energy efficiency (important for long-term running costs)
The Main Risks
- Developer insolvency before the building is finished
- Construction delays that push back the deed — and your financing with it
- A final bank valuation below the contract price, leaving a gap to fund in cash
- Finishes, areas or layout that differ from what was sold
- Changes in your own situation between signing and completion
Due Diligence Before Signing the CPCV
The promissory contract (Contrato Promessa de Compra e Venda — CPCV) is where most of your protection is won or lost. Have an independent Portuguese lawyer review it before you pay anything.
- The developer's track record and financial standing: projects delivered, any ongoing litigation
- The land registry certificate (certidão predial) and the construction licence
- A bank guarantee (garantia bancária) or equivalent protection on every amount paid before the deed
- A firm delivery date, late-delivery penalties and your right to withdraw with a full refund
- Detailed specifications and floor plans attached to the contract
- Whether parking, storage and finishes are included in the price or billed separately
Financing an Off-Plan Purchase
Financing follows its own timeline: in most cases the bank releases the loan only at the deed, and your deposit and stage payments come from your own funds. We explain how this works step by step in our guide to off-plan mortgages and stage payments. Check your financing before you sign the CPCV, not after.
Off-plan can be a rewarding purchase in Portugal, but your protection lies in the contract and in the checks you make beforehand. Don't skip the due diligence.