Homebuyers are flocking to the suburbs of Lisbon, but potential savings are quickly evaporating as real estate prices in these areas now generally exceed €300,000, according to new data from Idealista. The wave of demand is not only pushing up values in the traditionally more affordable outskirts but also creating a ‘contagion effect’ that’s fueling record prices throughout the Greater Lisbon region.
Leading the pack in housing demand are the municipalities of Amadora, Moita, Odivelas, Alenquer, and Vila Franca de Xira. These are closely followed by sought-after locations like Oeiras, Barreiro, Sintra, Palmela, and Loures. Despite its international prestige, Lisbon itself ranks only 12th in demand, though an impressive 17 municipalities from the Greater Lisbon area are included in Idealista’s national top 50 list.
The Porto Metropolitan Area shows a distinctly different pattern, with only seven municipalities making the top 50 for buyer interest. There, Paredes claims the highest demand, ranking 13th nationally. High prices are having a clear impact further south as well; in the Algarve, exorbitant values—often over €400,000—have pushed Faro out of the top 50 for demand altogether.
Among Portugal’s priciest markets, Cascais stands out with a median home price of €1.3 million, making it the nation’s most expensive municipality. Other high-end regions include Oeiras (€738,000), Albufeira (€708,000), and Lisbon itself (€695,000). For those seeking more affordable options, Castelo Branco (€151,000) and Covilhã (€176,000) remain the most budget-friendly municipalities in the country.
The surge in demand for the suburbs underscores a clear trend: families and individuals are actively seeking alternatives to the high prices of major urban centers. Yet, as the report shows, property values are rising rapidly in these peripheral areas as well, making the search for affordable homes increasingly challenging across Portugal.
As families continue to migrate to the edges of big cities, all eyes will be on whether price growth stabilizes or if Portugal’s housing market surge will continue to push buyers farther afield.
