5 Must-Know Tips Before Buying a New Build in the Algarve Property

Deciding whether to buy or build a house depends on personal preferences and budget. If affordability is a priority, purchasing land and building a home may be cheaper than buying a newly constructed property. On the other hand, buying a ready-built home is less stressful where you avoid the hassle of permits, construction delays, and contractor management.

Portugal ranks among Europe’s top destinations for new construction, with over 30,000 new homes built annually, with the Algarve among the most active markets due to ongoing demand and development.

However, buying a newly built home still requires careful consideration to ensure a sound investment. Here are five essential tips to guide you through purchasing a newly constructed home in the Algarve. 

1. Do Your Research on the Developer

When buying a newly constructed home, one of the most important steps is researching the developer. A reputable builder can make all the difference in the quality of your new home. Check for the following:

• Reputation and Reviews: Look up online reviews, ask for recommendations, or speak to others who have purchased from the same developer. A solid reputation for delivering quality homes on time is crucial.
  
  
• Past Projects: Visit other completed developments by the builder to assess the quality of construction and finishes.
  
  
• Accreditations and Insurance: Ensure that the developer has the necessary certifications and insurance for the project, including construction insurance for defects and delays. Portugal has strict construction laws, and developers must provide a 10-year warranty on structural defects for new builds.

By carefully vetting the developer, you ensure the home is built to a high standard, reducing potential issues in the future.

2. Understand the Building Process and Timeline

Newly constructed homes often have a specific timeline for completion. Delays can occur, so it’s essential to get a clear understanding of the expected timeline and construction phases. Be sure to ask the developer for:

• Estimated Completion Date: Get a concrete timeline in writing, with clear milestones for the construction process.
  
  
• Possible Delays: Understand potential factors that may cause delays, such as supply chain issues or weather conditions.
  
  
• Post-Completion Inspection: Agree on a final inspection before you officially take possession of the home.
  
  

Knowing what to expect throughout the process helps manage your expectations and avoids any surprises when it comes to move-in time.

3. Request Detailed Specifications and Upgrades

Every newly constructed home has its unique features, finishes, and potential upgrades. Before committing to the purchase, ensure you understand what’s included in the base price and what upgrades or add-ons might be available.

• Base Features: Clarify which materials and finishes are part of the base package. These might include flooring types, kitchen appliances, and bathroom fixtures.
  
  
• Upgrade Options: Inquire about available upgrades, such as custom cabinetry, enhanced flooring, or outdoor landscaping. These might affect the overall price, so it’s important to make an informed decision.
  
  
• Warranty Details: Newly built homes typically come with a builder’s warranty. Make sure you understand the warranty coverage, including the duration and what is covered (e.g., structural defects, appliance issues).
  
  

4. Get a Professional Home Inspection

While a newly constructed home may seem flawless at first glance, hiring a professional home inspector can provide peace of mind. An independent inspection ensures that:

• Construction Quality: A professional inspector will check for common issues such as faulty wiring, plumbing, or foundation problems that could have been overlooked.
  
  
• Code Compliance: The home must meet local building codes and regulations. An inspection can confirm that everything is in line with the law.
  
  
• Potential Defects: Catching issues early, even in a new home, can save you from expensive repairs down the road.
  
  

Even though a newly constructed home is typically expected to be problem-free, an inspection can catch hidden issues before closing the deal.

5. Review the Property’s Location and Long-Term Value

While the home itself is important, the location plays a crucial role in the long-term value of the property. When purchasing a newly constructed home, make sure to:

• Evaluate the Area: Research the area around the development, including its amenities, proximity to schools, shops, and public transport. Look for signs of future growth or development that could increase property values.
  
  
• Consider Resale Potential: Even if you plan to live in the home for many years, consider its resale value. A home in a well-established or growing neighbourhood is more likely to maintain or increase in value over time.
  
  
• Local Infrastructure and Services: Investigate the availability of utilities (water, electricity, internet) and future infrastructure projects in the area, such as new roads or public transport options.
  
  

Choosing the right location is just as important as the quality of the home itself, as it can greatly impact your investment over time.

Summary

Buying a newly constructed home can offer many advantages, such as modern amenities, energy efficiency, and the opportunity to customise your space. By following these five tips; researching the developer, understanding the building process, reviewing upgrades, conducting a home inspection, and assessing the location, you can ensure your investment is a smart one.

If you're looking to purchase a newly constructed home in the Algarve or have any questions about the process, our team is here to help. Contact us for expert advice and assistance.