The average price to buy a house in Portugal jumped 20% to €420,000 in 2025, with regional price hikes and rental increases especially in once-affordable districts. See how much it costs to buy or rent in Portugal now.
Portugal’s housing market remains red-hot in 2025, with the cost of buying a home reaching new heights across the country. Average purchase prices surged by 20% in just twelve months, while rental values climbed more slowly but still rose sharply in many traditionally affordable areas outside the main cities.
According to the latest Imovirtual barometer, the average advertised price for a home in Portugal soared from €350,000 in 2024 to €420,000 this year—a staggering €70,000 increase. This jump reflects not only the persistent shortage of properties and robust demand in key regions, but also a fundamental shift in how and where both locals and newcomers search for their next home.
Buying a Home: Not Just a Lisbon Phenomenon Anymore
While Lisbon remains the most expensive spot to buy a house—up 30% in one year to €650,000—eye-catching price rises are no longer confined to the capital or Porto. The surge was widespread:
- Santarém: +30% to €240,000
- Coimbra: +24% to €260,000
- Leiria & Viseu: significant double-digit increases
- Beja: +30% to €189,000
- Faro: +19% to €530,000
- Setúbal: +20% to €460,000
- Braga & Aveiro: +17% and +16% respectively
- Porto: +13% to €404,250
In island territories, price jumps were even more dramatic: Porto Santo (+37%), São Miguel (+35%), and Madeira (+19%) all set new records, with average prices reaching €480,000, €390,000, and €575,000 respectively.
The only district to see a decrease was Bragança, down 5% to €115,000.
Renting: Increases Hit the Periphery Hardest
Rental price growth was more moderate at the national level, with the average monthly rent climbing just 4% to €1,300, up from €1,250 last year. However, this mild national average hides strong regional differences:
- Guarda: +31%, from €400 to €525
- São Miguel (Azores): +25%, from €800 to €1,000
- Vila Real: +22%, reaching €600
- Bragança: +15%, to €550
- Faro: +14%, up to €1,250
- Évora: +13.5%, to €965
Meanwhile, rental prices in Lisbon stabilized at an already high €1,655 (+0.3%), and Porto actually saw a slight decrease to €1,150.
Market Fragmentation and Location Shifts
One of the key takeaways from 2025 is the growing fragmentation and diversity in the housing market. The surge in prices is no longer a strictly urban or coastal affair. Buyers and renters are increasingly moving to districts that were, until recently, considered much more affordable. This is not just out of preference, but out of necessity, as traditional hotspots have become out of reach for many.
Why Are Prices Climbing So Fast?
- Insufficient supply: Despite high demand, new construction and listings can’t keep up.
- Structural demand: Both domestic needs and ongoing foreign interest keep up the pressure.
- Remote work flexibility: Pushes demand toward peripheral and regional locations.
- Touristic appeal: Keeps prices high in the islands and coastal markets.
What’s Next?
With such sharp increases in purchase prices and more subtle, but impactful, shifts in rental markets, affordability remains a growing concern, particularly for first-time buyers and young families. Regional disparities are likely to deepen, as more buyers and renters hunt for value—and space—in smaller cities and islands.
Bottom Line
If you’re hoping to buy or rent in Portugal in 2025, expect to pay a premium almost everywhere, not just in Lisbon or Porto. The market is more diversified than ever, and appreciation is now striking well beyond the classic urban hotspots. Whether you’re a would-be buyer, a renter, or a property investor, understanding these regional dynamics has never been more important.
