This Quaint Town in Portugal Was Just Named the Best Place to Invest in Europe — and It Has Stunning Beaches

Lush pine forests, cobblestone streets, endless ocean views, and low real estate prices await in this quaint community in northern Portugal.

Chafariz or Terreiro fountain in the square of the adviser Silva Torres in Caminha, Portugal
Photo:

Xurxo Lobato/Getty Images

Portugal is on everyone's mind these days. The country's sunny weather, many beaches, and affordable cost of living have made it a popular choice for retirees and digital nomads. However, as is often the case, real estate prices in some of its most sought-after regions, like the capital, Lisbon and Algarve, have soared. But that doesn't mean you should give up on your dream of owning property in Portugal.

A new report by International Living ranked the small, under-the-radar- town of Caminha the best place to invest in real estate in Europe for its value and growth potential. 

The community is located in the northwest along the mouth of the Minho River, which separates Portugal from Spain, and is home to about 16,000 residents. International Living gave Caminha a perfect score of 10 in the relative value category and nine for quality of life and stability.

"Caminha, which is only separated from Spain by a river, completely charmed me," Ronan McMahon, founder of Real Estate Trend Alert and author of International Living's Global Real Estate Index, told Travel + Leisure. "It has a beautiful Old Town surrounded by a verdant and bucolic countryside, with mountains, rivers, forests, and fields overflowing with brightly colored flowers and fruit trees heavy with their bounty. And then there are the stunning Atlantic beaches."

The ancient town has plenty of character, with fountains, churches, and other buildings dating back to the 16th and 17th centuries. And it's easily accessible from Porto, which is just an hour and 15 minutes south, providing access to an international airport. 

Jeff Opdyke, International Living's personal finance editor, called Caminha a "holdover of Portugal before tourism and modernity swept over Lisbon, the Algarve, and Porto," where affordable real estate is still the norm. 

Potential buyers can find apartments downtown for as low as $150,000 and stand-alone houses for $280,000.

And while Caminha is the best place to invest in Europe, another destination took the top prize for global real estate value: Mexico's Los Cabos. International Living ranked first with almost perfect scores in categories such as income potential, climate, and international appeal. Riviera Maya and Estepona in Spain, a town in the country's famous Costa del Sol region, are tied for the third place.

You can see the full ranking at internationaliving.com.

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