Northern Portugal real estate prices have seen a significant increase, with the average house price now at €238,500. This growth reflects the region’s rising popularity and investment potential. Explore the factors contributing to this trend and what it means for buyers and investors alike.
The Northern Portugal real estate market is witnessing notable changes, with house prices on the rise. Recent analyses comparing average prices for renting and buying properties between April and May 2025, alongside the same period last year, reveal significant trends. The report, conducted by Imovirtual, highlights the leading cities in price increases, as well as the most affordable areas in the region.
Selling Prices: A Surge in the North
Average House Prices
In Portugal, the average price of a house has reached €414,000, reflecting an annual increase of 18% and a monthly increase of 4%. Within the Northern region, the average house price stands at €238,500, marking a 9.66% increase over the past year. This upward trend indicates a growing demand for housing in the North, driven by various factors including economic growth and urban development.
Key Cities Leading the Price Increases
Among the cities in the North, Porto and Aveiro are at the forefront of price increases. Porto, the largest city in the North, boasts the highest average house price in the region at €395,000, which represents a 14% annual increase and a 1% monthly increase. Aveiro and Braga follow closely, with average prices reaching €340,000 in both cities. These areas have experienced annual increases exceeding 15%, alongside a monthly increase of 1%.
Other Notable Areas
Viana do Castelo has also seen a significant rise in housing prices, with an average cost of €287,000. This area has recorded a 12.55% annual increase and a 2% monthly increase. Conversely, Viseu has experienced a slight decline in monthly prices, dropping by 3%, although it still shows a 6% annual growth, bringing the average price to €190,000.
Guarda, while registering a 2% monthly decrease, has seen an impressive 20% annual increase, indicating a volatile but upward trend. Bragança remains the most affordable district in the North, with an average housing price of €110,000, while Vila Real has a slight monthly decrease, with an average price of €174,000.
Renting Prices: Stability Amidst Fluctuations
National and Regional Averages
On the rental front, the national average rent has stabilized at €1,300, reflecting an annual increase of 4%. In the North, the average rent is set at €731, which represents a modest 1% increase compared to €725 in May 2024. This stability in rental prices suggests a balanced demand and supply scenario in the rental market.
City-Specific Trends
Porto continues to command the highest rental prices in the North, maintaining its average rent at €1,200 after a decline in April. Guarda has recorded the most significant annual increase in rental prices within the region, soaring by over 47% and now standing at €560. Vila Real has also seen a substantial annual increase of 50%, maintaining its rent at €600.
Bragança has shown a slight recovery, with rents increasing from €500 to €525, although it still faces a year-on-year decline of -5%. In contrast, Braga has experienced a decline for the second consecutive month, settling at €875 with a negative annual variation of -3%.
Viseu has recorded a slight monthly increase of 2%, bringing the average rent to €662.50. Meanwhile, Viana do Castelo and Aveiro have maintained their previous month’s rental values at €800 and €900, respectively.
The Northern Portugal real estate market is undergoing significant changes, with house prices experiencing notable increases across various cities. Porto and Aveiro lead the charge, while Guarda and Vila Real remain the most affordable areas. The average house price in the North has risen to €238,500, reflecting a 9.66% annual increase, while rental prices have shown stability with an average of €731.
As the demand for housing continues to grow, it is crucial for potential buyers and investors to stay informed about market trends and fluctuations. The ongoing changes in the real estate landscape present both opportunities and challenges, necessitating a strategic approach for those looking to navigate this dynamic market.
