Portugal’s real estate market sets a new record as house prices rise 13.1% year-on-year, reaching an all-time high of €3,047 per square meter in January. Find out what’s driving the increase and what it means for buyers and investors.
Portugal’s housing market continued to heat up in January 2026, with prices hitting a new record and large year‑on‑year gains across most cities and districts, according to the latest Idealista price index.
Headline figures
• National median asking price rose 13.1% year‑on‑year, reaching a new all‑time high of €3,047 per m² at the end of January 2026. This marks the third consecutive month of new record medians.
• Quarter‑on‑quarter change was +2.6%.
• Standout city gains were posted in Viana do Castelo (+16.8%) and Braga (+13.2%) compared with January 2025.District capitals: broad increases, few exceptions
House prices climbed in 18 of 19 district capitals and autonomous regions analysed. The biggest annual increases were in Guarda (+22.2%), Beja (+21.9%) and Santarém (+21.6%). Other notable rises included Setúbal (+15.7%), Coimbra (+14.9%), Aveiro (+13.9%), Braga (+13.2%) and Viana do Castelo (+16.8%). Lisbon city recorded an 11.2% annual increase and remains the most expensive place to buy a home at a median €6,065/m², followed by Porto (€3,940/m²) and Funchal (€3,901/m²).
Cities with lower medians include Leiria (€1,779/m²), Santarém (€1,697/m²) and inland districts such as Castelo Branco and Portalegre, all below €1,000–€1,100/m² at the lower end.
Districts and islands: Porto Santo’s dramatic jump
All 26 districts and islands measured by Idealista showed price increases year‑on‑year. The island of Porto Santo led the pack with a striking 41% rise, followed by Terceira (+24.4%), Guarda (+22.3%) and Viseu (+21.3%). Lisbon district is the most expensive at €4,637/m², with Faro (€3,899/m²) and Porto Santo (€3,843/m²) following.
At the lower end, districts such as Guarda (€851/m²), Portalegre (€913/m²) and Bragança (€924/m²) remain comparatively affordable.
What this means for buyers and sellers
Rising asking prices across most of Portugal point to continued demand pressure, particularly in coastal and island markets as well as selected inland hubs. For sellers, higher medians may create favorable conditions to list. For buyers—especially first‑time purchasers—affordability pressures are growing in the pricier cities, making timing, mortgage costs and location trade‑offs increasingly important.
