Portugal’s housing market shows no signs of slowing down, with house prices rising across the country and many urban centers hitting new highs, according to the latest figures from the National Statistics Institute (INE).
Widespread Growth in Portugal’s Real Estate Market
In the second quarter of 2025, Portugal’s property prices increased in 19 out of Portugal’s 24 most populous municipalities (those with more than 100,000 residents). The national median price reached €2,065 per square meter, marking a significant 19% year-on-year rise. This robust growth highlights not just the resilience, but the ongoing appeal of the Portuguese real estate sector.
Lisbon, Cascais, Oeiras, Porto, Odivelas, and Almada continue to be the most expensive areas, with square meter prices well above the national average. The metropolitan regions of Lisbon and Porto remain the country’s prime markets for both local and foreign buyers, backed by high demand, limited housing supply, and steady international investment. Island regions like Funchal in Madeira also maintain price levels above the national norm, underlining the appeal of both urban and tourist-friendly locations.
Cities Driving Price Increases
Sales activity remains strong, with 41,608 family homes being transacted in just three months—reflecting a 15.6% jump from the previous year. This surge illustrates sustained buyer interest despite increasing costs, fueled by a recovering economy, continued foreign investment, and challenges to building new housing in city centers.
Vila Nova de Gaia, Coimbra, and Amadora lead this quarter’s price increases. Meanwhile, Baixo Alentejo stands out among Portugal’s 26 sub-regions, experiencing the highest year-on-year growth at 38.7%. However, some of the country’s wealthiest areas—Lisbon (11.4%), Porto (9.2%), and Cascais (8.8%)—are seeing slower growth, suggesting a stabilization where prices are already high.
Portugal’s Real Estate Market Trends and Buyer Challenges
For potential homeowners, the main challenge is balancing personal budgets with location and property type as prices soar. For real estate professionals, these rising values mean new business opportunities, particularly in up-and-coming areas outside the main urban centers.
Experts believe that, with ongoing strong demand and limited new construction, house prices in Portugal will continue to rise in the near future, though possibly at a slightly slower pace.
Looking to Buy or Rent in Portugal?
Portugal’s real estate market remains one of the hottest in Europe, attracting residents and international investors alike. If you’re interested in buying or renting, explore the latest property listings across the country on the iq portal, featuring updated opportunities from north to south—including the islands.
Stay tuned for more updates on Portugal house prices and real estate market trends.
