Portugal is witnessing a remarkable surge in house prices, outpacing the rest of Europe significantly. According to the latest figures from Eurostat, house prices in Portugal increased by an astonishing 17.2% in the second quarter of this year compared to the same period last year, making it the highest year-on-year increase among European Union member states. In stark contrast, the euro area saw an average increase of just 5.1%, while the European Union as a whole recorded a 5.4% rise.
A Continued Trend of Rapid Appreciation
For three consecutive quarters, Portugal has been at the forefront of rising property values, alongside Bulgaria (15.5%) and Hungary (15.1%). This upward trend highlights the significant disparity in housing markets across Europe, raising concerns about accessibility in the context of a housing crisis. Notably, Finland was the only country to experience a decline in house prices, with a decrease of 1.3%.
In terms of quarterly changes, Portugal again led the pack with a robust 4.7% increase, compared to Luxembourg’s 4.5% and Croatia’s 4.4%. Meanwhile, two countries, France and Belgium, saw slight decreases in house prices, further emphasizing the unique position of Portugal in this climate.
Long-Term Trends in Housing Costs
The data reveals a troubling trend: between 2010 and the second quarter of 2025, house prices in 21 of the 26 European Union member states increased at a rate faster than rent. In Portugal, house prices skyrocketed by an extraordinary 141% during this period, highlighting the growing affordability crisis facing many residents. For comparison, Hungary experienced an even more dramatic increase of 277%, while Estonia also saw significant price growth.
Calls for State Support
In light of the escalating housing crisis, the European Commission is advocating for increased state support to foster the creation of affordable housing options. As the gap between wages and housing costs widens, the need for effective solutions to ensure access to housing becomes increasingly urgent.
Portugal’s impressive rise in house prices underscores the urgent challenges facing homebuyers in the country. As property values continue to soar, the government and stakeholders within the real estate sector must work together to develop strategies that promote affordable housing solutions for residents. With the current trajectory, understanding the landscape and potential impacts on accessibility will be crucial for both buyers and policymakers in the coming years.
