Thanks for your kind replies Vinte.
We're actually looking for a specific area in the Cascais area. We been quoted a price of around 120.000 € for an apartment. When we offered to pay cash, no mortgage necessary, the seller sounded very keen and was quick to point out, that yes, the price was definitely negotiable. It seems the apartment was bought by a company for the sole reason of doing place up and sell it for a profit. One of our Portuguese friends who live nearby went to take a look at the apartment and he says it way overpriced. Our friend himself bought a place with his wife and received 15% discount for paying in cash. We're not in a rush to buy a property or any other one for that matter, so let's see if it's still on the market in three months time. If it's still available, our friend told us not to offer more than 90.000 €. I'll let you know how our negotiations turn out if and when we purchase it.