Explore the latest trends in Portugal’s real estate market as of May 2025, where the average cost of buying a home has reached €414,000, while rental prices stabilize at €1,300. Property sales continue to climb, reflecting ongoing demand.
National Real Estate Overview:
In May 2025, the real estate landscape in Portugal witnessed a significant surge in property prices, with the average selling price now standing at €414,000. This reflects a notable 4% increase compared to April and a remarkable 18% rise from the previous year. On the rental front, the average national rent remains stable at €1,300, showcasing a consistent performance compared to April and a modest 4% elevation from May 2024.
Regional Market Insights:
North Region:
- Porto leads with an average selling price of €395,000, showing a robust annual growth of 14%.
- Braga and Aveiro follow with prices reaching €340,000, marking increases of over 15% from the previous year.
- Viana do Castelo stands at €287,000, reflecting a 13% annual surge.
- Bragança experienced a significant drop of 13% year-on-year, settling at €110,000.
- Viseu saw a monthly devaluation of 2.56% but maintained an annual growth of 6%.
- Guarda reported a price of €97,500, showing a 2% decrease from April but a notable increase of over 20% compared to May 2024.
Center Region:
- Lisbon remains the most expensive district at €650,000, marking a 4% hike in May and an impressive 33% increase annually.
- Coimbra witnessed a price of €250,000, escalating by 26% from May 2024.
- Santarém reported a value of €237,000, demonstrating a 3% monthly increase and a substantial 28% yearly growth.
- Leiria saw prices reaching €299,000, showcasing an annual growth rate of 13%.
- Castelo Branco remained stable with a slight appreciation of 2% year-on-year.
Southern Region:
- Faro priced at €535,000, showcasing a significant annual increase of 22%.
- Setúbal stands at €440,000, with a 2% monthly appreciation and a 22% yearly growth.
- Évora witnessed a price of €259,000, reflecting a 4% increase from April and a 23% year-on-year growth.
- Beja reported a monthly growth of 5% and a yearly increase of 26% at €183,000.
- Portalegre remained stable but showed an annual increase of 26%, priced at €120,000.
Islands:
- Madeira priced at €590,000, reflecting an annual growth of 24%.
- São Miguel saw prices reaching €385,000, marking a 7% monthly increase and a substantial 38% annual growth.
Rental Market Evolution:
North Region:
- Porto led with an average monthly rent of €1,200, showing a 4% increase.
- Braga reported a value of €875, displaying a 2% decrease monthly and a 3% drop annually.
- Guarda priced at €560, indicating a 2% monthly increase and a remarkable 47% rise compared to the previous year.
- Vila Real remained stable in May but appreciated by 50% annually.
- Aveiro (€900) and Viana do Castelo (€800) maintained stable rental values.
- Bragança showcased an increase of 5% monthly but remained below the value of May 2024 by 5%.
Center Region:
- Lisbon cited a rental price of €1,670, reflecting a 2% reduction compared to April but retained the highest rents in the region.
- Coimbra witnessed a price of €795, displaying a 6% monthly and annual increase.
- Leiria stood at €813, showing a 2% growth.
- Santarém maintained a stable price of €800 but showcased a notable 7% annual appreciation.
- Castelo Branco showed a monthly decrease of 8% and an annual drop of 4%, priced at €550.
Southern Region:
- Faro reported a monthly growth of 2% and a 37% yearly increase, priced at €1,300.
- Setúbal showcased a 4% monthly increase, standing at €1,250.
- Évora, priced at €895, displayed a 5% increase.
- Beja maintained a stable value of €700 with an 8% yearly increase.
- Portalegre saw a 15% jump compared to April and a 5% annual increase, priced at €575.
Islands:
- Madeira showcased a rental price of €1,600, growing by 7% and retaining its position as the second most expensive area to rent.
- São Miguel stood at €800, witnessing an 11% monthly drop and a 6% annual decline.
The Portugal’s real estate market continues to exhibit robust growth, characterized by escalating sales prices in key areas like Lisbon, Faro, and the autonomous regions. Though rental rates remain stable on average, areas catering to tourists, such as Faro and Madeira, experience notable pressures. Moreover, the growth in less central regions like Guarda, Beja, and São Miguel signifies a broader demand trend beyond major urban centers. These trends affirm the continuous appreciation of real estate assets across Portugal.
