What guarantees should developers provide for new builds?

Developers in Portugal must provide a 5-year warranty for structural defects and a 2-year warranty for equipment and appliances. Ensure these guarantees are explicitly stated in your contract. Additionally, new builds should come with technical documentation, energy certificates, and habitability licenses (licença de habitabilidade).

How can I protect my deposit when buying off-plan?

To protect your deposit, ensure payments are made to an escrow account rather than directly to the developer. Your contract should clearly state the conditions under which your deposit would be refundable, such as project cancellation or significant delays. Bank guarantees or insurance policies that protect stage payments are also essential safeguards.

What should I look for in the plans and specifications of a new build?

Review detailed floor plans with exact measurements, specifications of materials and finishes, included appliances and fixtures, and energy efficiency features. Pay attention to communal areas, parking arrangements, and storage spaces. Get all specifications in writing as part of your contract, including brands and models where relevant.

New Builds & Off-Plan Risks | Buying Property in Lisbon

Purchasing newly built or off-plan properties in Portugal can offer advantages such as modern designs and amenities, but also comes with specific risks that buyers should understand.

Evaluating Developers

Research the developer's track record, financial stability, and reputation before committing to an off-plan purchase. Visit previously completed projects, speak with current owners if possible, and verify the developer's licensing with relevant authorities.

Visual representation of evaluating developers

Contract Protections

Off-plan contracts should include detailed specifications, clear timelines with penalty clauses for delays, and escrow arrangements for stage payments. Ensure the contract addresses potential issues like construction defects, material changes to specifications, and completion guarantees.

Monitoring Construction Progress

Regular site visits during construction help ensure the property is being built according to specifications. Consider hiring an independent architect or surveyor to assess construction quality at key stages, especially if you're not able to visit regularly yourself.

Key Takeaways

Evaluating Developers: Research the developer's track record, financial stability, ...
Contract Protections: Off-plan contracts should include detailed specifications, c...
Monitoring Construction Progress: Regular site visits during construction help ensure the prop...

Common Concerns

Construction delays and quality discrepancies
Changes to promised specifications
Developer bankruptcy risks
Warranty and completion issues

Expert Tips

"When dealing with new builds & off-plan risks in Portugal, always ensure you have documented evidence of all agreements. The Portuguese system relies heavily on proper documentation and verification."

E

Eduardo Silva

Real Estate Specialist, Lisbon