Smaller plots, lower entry prices and greater planning certainty are driving interest in self-build homes
Demand for plots intended for self-build housing increased by approximately 40% between September 2025 and September 2026, according to data from Porta da Frente Christie's International Real Estate, reported by 24 Notícias. The trend points to a shift in buyer behaviour, with more families considering building their own homes as an alternative to purchasing completed properties, despite a 7% decline in the number of new plots entering the agency's portfolio.
Supply has evolved accordingly, with a significant reduction in plot sizes. Between September 2024 and September 2026, the median area of plots in the agency's portfolio fell by 68%, from 2,696 to 860 square metres. Over the same period, urban plots of up to 1,200 square metres increased their share of available stock from 30% to 69%, while plots within subdivisions and residential developments rose from 2% to 43%.
This shift is also reflected in asking prices. The median advertised price of plots marketed by the agency fell from €955,000 in September 2024 to €520,000 in September 2026. According to the agency, this reduction primarily reflects the smaller size of available plots rather than an underlying depreciation in land values. Demand is particularly concentrated on plots of between 500 and 1,100 square metres that already have infrastructure in place and clearly defined planning conditions.
Planning certainty is also a key factor in purchasing decisions. According to the reported figures, 93% of the plots sold by the agency had an approved project or a favourable Prior Information Request (PIP), allowing buyers to assess development potential in advance and reduce uncertainty surrounding planning approvals. Most of the transactions analysed took place in Greater Lisbon, particularly in Cascais, Oeiras, Sintra and Montijo.
The trend is also linked to construction incentives, including the reduction of VAT to 6% on eligible construction contracts and the simplification of urban planning procedures. Nevertheless, building a home requires careful assessment of total costs, timelines, financing and the legal conditions applicable to each plot.
The key takeaway is that self-build housing is becoming a more prominent residential option, supported by smaller plots, lower entry prices and greater planning predictability. However, the findings are based on more than 220 plots in Porta da Frente Christie's portfolio and should not be interpreted as representative of the entire Portuguese property market.
Published by 24 Notícias on 27 October 2026,
