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Is it better to buy or rent a house? We help you decide!

The truth is that both the housing market and the rental market are on the rise. The sales prices of real estate rose by 13% in comparison with the values of 2011, in the Algarve. Also, the national leasing market shows an increase of 26% in 2017 compared to the previous year. At the moment, the average monthly rent for a two-bedroom apartment in the Algarve is €427,37.  

After this summary of the current market, the critical thing is to know the differences, advantages and disadvantages of choosing between buying a home or opting for a lease. Find below a table that will guide you in making this decision:



To buy

To rent

Initial investment

Investment of about 20% of the value of the property valuation.

Usually, an advance payment of rent is required as security, which will be much lower than the initial investment of a home purchase.


Mobility is lower, especially if you have a bank loan.

You can move out as soon as you finish your contract.


The permanence in the house depends solely on you.

Your permanence in the property depends on the will of the landlord.

Freedom to change space

Total freedom.

The property is not yours, so there is limited freedom to change what you do not like.

Additional expenses

Utilities, as well as all other costs of housing: condominium, IMI, insurance, maintenance, etc.

Depending on what the contract includes you should not have additional expenses other than utilities: water, electricity, gas, internet.

Equity value

You will be paying for something that in the end will be your asset.

You will be paying only for the use of the property and not the house purchase.

Property Valuation

When you buy a property, you can get back your investment depending on the market.

Not applicable.


If you intend to stay at least three years in an area and have liquidity for the initial investment Casas do Barlaventoadvises a property purchase. On one side, there is currently a shortage of houses for long-term lease; on the other hand, the interest rate on housing credit is at historically low levels, with banks facilitating the investment, thus being possible to get smaller payments.