Discover why the cost of buying a house in Lisbon has surpassed €650,000 in 2025, securing its status as Portugal’s priciest city for real estate. Learn what’s driving demand and explore the current trends in Lisbon’s competitive property market.
Are you considering buying property in Lisbon? The Portuguese capital continues to dominate the country’s real estate market, with average house prices now exceeding €650,000. This sharp increase cements Lisbon as the most expensive city in Portugal for both purchasing and renting property.
Lisbon’s Soaring Property Prices in 2025
The cost of a house in Lisbon has reached unprecedented heights in 2025, reflecting a continuous appreciation trend in the city’s real estate sector. The current average of €650,000 is more than double the regional average, setting Lisbon far above the national mean house price of €426,000. In comparison, other districts within the Central region—such as Coimbra and Leiria—show averages between €250,000 and €315,000, with Castelo Branco remaining much more affordable at around €99,000.
Key Factors Behind Lisbon’s Rising Property Values
Several factors drive Lisbon’s unique real estate market dynamics:
- Economic Centrality: As Portugal’s economic hub, Lisbon attracts a wealth of talent and high-paying jobs, drawing both domestic and international buyers.
- Strong Demand & Shortage of Supply: Chronic undersupply, especially in sought-after central areas, puts upward pressure on prices.
- Tourism & Urban Renewal: The city’s popularity as a tourist and investment destination accelerates housing demand and urban regeneration efforts, particularly in historic districts.
- Gentrification: Ongoing gentrification and urban rehabilitation projects elevate the quality—but also the price—of residential properties, especially in premium segments.
- Foreign Investment: Lisbon’s global appeal brings in significant foreign capital, further intensifying competition for real estate.
Comparing Lisbon to Other Portuguese Cities
Looking beyond Lisbon, the price gap with other regions is stark. While cities like Coimbra and Leiria also see appreciation, their average sales values of €250,000–€315,000 remain well below those in the capital. Santarém, despite experiencing one of the fastest growth rates, cannot match Lisbon’s figures. Interior regions such as Castelo Branco offer much more accessible markets.
In the rental sector, Lisbon also leads by a wide margin, with average rents around €1,710 per month, compared to €800–€850 in Coimbra and Leiria, or €550 in Castelo Branco. This highlights not only the city’s desirability but also the mounting challenges for residents and newcomers alike.
Fast-Paced Growth: Recent Real Estate Trends
Between August 2024 and August 2025, Lisbon saw its average real estate prices jump by 23%, while the national market grew by 15%. The limited availability of new urban land, combined with robust foreign investment, keeps both prices and rents on a steep upward trajectory. Because of this, many buyers are now seeking alternatives in Lisbon’s metropolitan area—such as Almada, Oeiras, or Amadora—where properties are more affordable yet still benefit from proximity to the capital.
The Future Outlook for Lisbon’s Housing Market
Forecasts indicate continued upward pressure on property prices in Lisbon for the foreseeable future. Unless there is a substantial increase in new, affordable housing supply or impactful public policy interventions, the scarcity and demand-driven appreciation are unlikely to subside. Interest rates and economic trends will continue to play a pivotal role, making careful market analysis vital for anyone considering a move or investment in Lisbon.
The cost of buying a house in Lisbon in 2025 is now well above €650,000, strongly outperforming the rest of Portugal. As the gap between the capital and the rest of the country widens, both buyers and renters face increasing hurdles. Whether you’re considering relocating or investing, staying updated on Lisbon’s real estate trends is crucial for making informed decisions in this dynamic and competitive market.
