Thinking of buying a house in Portugal? Discover why property prices have risen 8.4% in August compared to the same month last year, with the average cost now at €2,951 per square meter. Get the latest insights on Portugal’s real estate market trends.
Portugal’s Hottest Housing Markets
Price Growth by City:
Eighteen district capitals saw property prices climb, with Beja (+33%), Santarém (+29.6%), and Guarda (+20%) leading the charge. Other notable increases occurred in Setúbal (+19.9%), Coimbra (+12.4%), and Viana do Castelo (+12.1%).
Most and Least Expensive Cities to Buy Property:
Lisbon continues to top the list as Portugal’s priciest city, with homes selling for an average of €5,866/m². Porto (€3,811/m²) and Funchal (€3,755/m²) follow closely. For buyers seeking affordability, Guarda (€962/m²), Bragança (€1,007/m²), and Beja (€1,300/m²) are the most budget-friendly capitals.
Price Trends by Districts and Islands
Major Price Rises:
Porto Santo island (+23.9%), São Miguel (+17.9%), and the Santarém district (+17.7%) experienced the largest year-on-year hikes. Notably, only the district of Bragança saw a decrease, with prices falling by 1%.
Expensive Districts & Islands:
Lisbon district remains the most expensive at €4,502/m², with Faro (€3,792/m²) and Madeira (€3,536/m²) close behind. On the lower end, Guarda (€785/m²), Portalegre (€869/m²), and Bragança (€893/m²) offer more accessible entry points for property buyers.
Regional Housing Market Overview
All Portuguese regions recorded rising property prices over the past year. The Azores led with a 17.3% surge, followed by Alentejo (+16.4%) and Madeira (+13.2%). Despite widespread increases, the Lisbon Metropolitan Area remains the priciest at €4,158/m², while the Center region stands out as most affordable at €1,610/m².
What’s Driving Portugal’s Housing Boom?
The ongoing rise in prices is driven by a mix of strong local demand, foreign investment, and limited housing stock. Portugal’s growing popularity for relocation and investment—thanks to its climate, safety, and quality of life—continues pushing prices upward, especially in urban centers and popular islands.
Considering buying property in Portugal in 2025?
Understanding these shifting market trends can help you find the right location to match your budget and investment goals. Whether you’re eyeing bustling Lisbon, scenic islands like Madeira or the affordable interior, Portugal’s real estate market remains dynamic and competitive.
