House prices in Portugal increased 8.5% year-on-year, reaching €2,926 per square meter in July. Discover the most expensive and cheapest locations to buy a house in Portugal, key regional trends for home buyers and get expert tips for entering the Portuguese real estate market.
If you’re considering buying a house in Portugal, it’s essential to be up to date with the latest market trends. According to the idealista price index, Portuguese house prices have jumped 8.5% in July 2025 compared to last year. The national median price to purchase a home now stands at 2,926 euros per square meter (€/m2).
But what does this mean for buyers? Let’s break down the latest data, highlight price changes across cities and regions, and explore where you can find the best deals in today’s fast-moving Portuguese property market.
House Prices in Portugal: 2025 Overview
- Annual change (July 2024 to July 2025): +8.5%
- Quarterly increase: +3.9%
- National median price: €2,926/m2
Cities with the Highest Price Increases
In July, house prices rose in 17 Portuguese capitals. The cities leading the surge include:
- Santarém: +24%
- Setúbal: +20.8%
- Guarda: +18.5%
- Ponta Delgada: +13.1%
- Évora: +12.1%
Other notable cities with significant annual price increases are Braga, Faro, Coimbra, Funchal, and Porto. In Aveiro, prices remained stable, while Bragança saw a small decrease of 0.6%.
The Most Expensive Cities to Buy a House in Portugal
If you’re looking to buy property in Portugal’s biggest cities, be prepared for higher prices per square meter:
- Lisbon: €5,829/m2
- Porto: €3,804/m2
- Funchal: €3,679/m2
- Faro: €3,264/m2
- Setúbal: €2,920/m2
Other urban centers like Aveiro, Évora, Ponta Delgada, Braga, and Coimbra also command above-average prices.
Where to Find the Cheapest Houses in Portugal
For buyers on a budget, the following cities offer the most affordable housing:
- Portalegre: €871/m2
- Castelo Branco: €906/m2
- Guarda: €957/m2
- Bragança: €989/m2
- Vila Real: €1,360/m2
- Santarém: €1,525/m2
- Viseu: €1,537/m2
These represent some of the best-value opportunities for home buyers seeking entry into the Portuguese housing market.
Regional Trends: Prices by District and Island
Significant price increases are not limited to mainland Portugal. The largest jumps were seen in:
- São Miguel (Azores): +25%
- Porto Santo (Madeira): +23.4%
- Beja: +20.7%
- Santarém: +17.8%
- Setúbal: +16.8%
On the other hand, prices fell slightly on São Jorge island (-2.6%) and in Bragança (-1.2%).
Most Expensive Regions (€/m2)
- Lisbon: €4,451
- Faro (Algarve): €3,753
- Madeira: €3,476
- Setúbal: €2,995
- Porto: €2,935
Most Affordable Regions (€/m2)
- Guarda: €774
- Portalegre: €852
- Bragança: €880
- Castelo Branco: €910
- Vila Real: €1,065
- Viseu: €1,153
Yearly Rise by Region
In the past 12 months, property prices rose in all regions. The strongest increases were in:
- Autonomous Region of the Azores: +19.7%
- Alentejo: +15.5%
- Madeira: +13.6%
- Algarve: +9.9%
- Lisbon Metropolitan Area: +9.8%
Regional Averages: Where Does Your Budget Fit?
- Greater Lisbon: €4,111/m2 (most expensive)
- Algarve: €3,753/m2
- Madeira: €3,466/m2
- North: €2,441/m2
- Center: €1,582/m2 (cheapest)
- Alentejo: €1,804/m2
- Azores: €1,874/m2
Final Thoughts: What’s Next for Portugal’s Housing Market?
With prices rising nearly everywhere, acting quickly is key if you want to secure the right home at a reasonable price. Lisbon and the Algarve remain costly, but bargains can still be found in regions like Guarda, Bragança, and Castelo Branco. Regional and city-level price differences are stark, so research your target area carefully before making a decision.
If you’re planning to buy a house in Portugal, keep these trends in mind and consult with local experts to make an informed investment in this dynamic real estate market.
Interested in buying property in Portugal?
Stay tuned for more tips and guides for international buyers and expats!
