As Portugal’s real estate market continues to attract international investors, off-plan properties – those purchased before construction is completed – have emerged as a popular investment route, especially in the Algarve. In this week’s Money Matters, Sasha Sharpley, Senior Real Estate and Investment Advisor at Ideal Homes Portugal, and Claire Wheatley, Founder and CEO of Moving Currency, share their insights on the financial benefits and currency considerations when buying off-plan in Portugal.
Why Consider Buying Off-Plan?
“Welcome to another edition of Money Matters! Today, I'm sharing some valuable insights into the Portuguese property market, with a special focus on a specific investment opportunity: buying off-plan properties in the Algarve,” says Sasha Sharpley. “Why consider going off-plan? It’s a smart way to secure a great investment while the property is still in the planning or construction stages.”
Sharpley outlines several reasons why investors are increasingly looking to off-plan options:
Lower Purchase Price
Developers typically offer off-plan units at discounted rates, allowing buyers to enter the market below projected future values.
Capital Growth by Completion
“In Portugal, especially in sought-after areas like the Algarve, the value of off-plan properties tends to increase significantly by the time construction is complete,” she explains. Investors may benefit from substantial appreciation before the property is even occupied.
Customisable Features
Buyers often have input on finishes, layouts, and materials—providing an opportunity to tailor the home to their preferences or market demands.
Staged Payment Plans
Off-plan purchases commonly involve staggered payments tied to construction milestones, reducing the financial burden of a lump-sum purchase.
Modern Standards
New builds typically conform to current design and energy-efficiency codes, increasing long-term value and tenant appeal.
A Real-Life Example: Ferragudo
Sharpley shares a practical illustration: “Let’s consider an off-plan property in Ferragudo, Algarve, listed for €470,000. By the time construction is completed in 18–24 months, its market value could increase to €550,000–€600,000 or more, giving you a potential capital gain of €80,000–€130,000 without any additional effort.”
The Algarve Advantage
Known for its year-round sunshine, stunning coastline, and established infrastructure, the Algarve remains one of Portugal’s most attractive regions for off-plan investment. Whether for personal use or rental income, buyer demand continues to grow.
“If you’re curious about off-plan developments currently available in the Algarve, we’d love to guide you through the options,” says Sharpley. “Many projects are selling fast, so now is the perfect time to explore what’s on offer.”
Managing Currency Exchange When Buying Off-Plan
“When buying off-plan properties, understanding your currency exchange options is crucial,” explains Claire Wheatley of Moving Currency. “There are options available that can help mitigate the risks of fluctuations and give you control over timing.”
Wheatley outlines two primary tools investors use to manage international payments:
Ideal for immediate, one-time payments such as deposits or closing fees, these allow funds to be exchanged at the current rate.
A forward contract locks in an exchange rate for future payments. “By forward buying, you can secure the exchange rate for all these payments at the time of your initial agreement,” Wheatley says. This protects buyers from fluctuations over the duration of the construction.
Why Forward Contracts Matter
“Forward buying allows you to secure a rate upfront, protecting you from future increases in costs,” Wheatley notes.
Fixed rates simplify financial planning across multiple payment stages.
Currency volatility won’t derail your overall investment strategy.
If you’re buying the Ferragudo property for €470,000:At 1.05 USD/EUR, the cost is $493,500
If the rate shifts to 1.10, the cost rises to $517,000 — a difference of $23,500
“With a forward contract, you could lock in the rate at 1.05, ensuring your payments won’t increase unexpectedly during the construction period,” Wheatley adds.
Supporting Your Investment Journey
“At Moving Currency, we help clients navigate both spot and forward-buying options to suit their needs,” Wheatley says. “Whether you’re making a single payment or planning for future instalments, we make the process simple and stress-free.”
Ideal Homes Portugal and Moving Currency offer a combined service experience, supporting investors throughout the property journey—from selection and legal support to managing cross-border payments.
Ready to Explore Off-Plan mortgage options?
To learn more or speak with an advisor: alejandro@idealhomesmortgages.com
Stay tuned for more expert insights in the next edition of Money Matters.