Buy Property in Lagos Portugal with Renovation Potential

Discover the hidden potential of Lagos, Portugal with renovation-ready properties that blend historic charm and modern luxury. From townhouses to coastal villas, smart upgrades can unlock impressive value in this thriving Algarve hotspot.

By LiveAlgarve on 23rd May 2025 - 3-4 m. reading time 

Lagos, is one of Portugal’s most desirable coastal towns. While many buyers look for turnkey homes, a growing number of high-end investors are turning their attention to renovation opportunities. By upgrading older properties in prime locations, investors can significantly boost resale or rental value, especially in a market where modern luxury is in high demand.

Why Renovate in Lagos?

Lagos blends historical charm with modern coastal living. 

According to a Knight Frank report, luxury buyers in Portugal are increasingly drawn to properties they can customise. The report notes that “buyer appetite is shifting towards renovated homes with character,” especially in areas like the Algarve, where heritage and location are prized.

Additionally, a study from Idealista revealed that renovated homes in coastal Algarve towns can increase in value by up to 30% compared to their pre-renovated state. This highlights strong investment potential in places like Lagos.

Top Renovation Opportunities in Lagos

1. Restoring Historic Townhouses

Lagos’s old town is filled with charming Portuguese townhouses that boast features like azulejo tiles, decorative cornices, and iron balconies. By carefully restoring these elements and integrating modern comforts (such as underfloor heating or smart home tech), investors can create properties that balance tradition and luxury.

2. Modernising Beachfront Villas

Coastal villas in areas like Porto de Mós or Ponta da Piedade often have prime views but dated interiors. Renovations that include open-plan layouts, floor-to-ceiling glass, designer kitchens and luxury bathrooms can elevate these homes to meet today’s luxury standards. Adding extras like infinity pools or rooftop terraces further enhances value.

3. Upgrading Holiday Apartments

Short-term rentals remain popular in Lagos, especially in beachfront areas like Meia Praia. Investors can increase returns by renovating outdated apartments with energy-efficient upgrades, sound insulation and luxury finishes. Well-finished apartments near the marina or town centre are especially attractive to high-end tourists and digital nomads.

4. Transforming Traditional Quintas

Quintas, rural estates typically located just outside Lagos, offer large plots and plenty of scope for bespoke renovations. These properties can be converted into elegant countryside retreats with private vineyards, landscaped gardens or guest cottages. Their size and layout often allow for features like spas, gyms, or home cinemas, which are increasingly expected in the luxury segment.

Our Tips for a Successful Renovation Investment

• Work with Local Experts: Hiring architects and builders experienced in the Algarve’s regulations and coastal climate is vital.
• Understand Legal Requirements: Renovations, especially on historic or rural properties, often require municipal approvals. Always verify local planning rules.
• Invest in Premium Materials: Use natural stone, hardwood flooring and high-end appliances to appeal to luxury buyers.
• Focus on Sustainability: Eco-conscious features like solar panels, thermal insulation and water-efficient systems are increasingly valuable and attractive to international buyers.

Why Now Is a Smart Time to Buy Property in Lagos Portugal

Portugal’s real estate market remains strong and Lagos, in the West Algarve, continues to attract foreign investment due to its safety, lifestyle and tax advantages. Renovation projects can help investors access premium locations at lower upfront prices, with the potential to create bespoke homes that stand out in a competitive market.

Looking to buy property in Lagos Portugal? Browse our listings, and get in touch with our team at Live Algarve Realty.