Buying a home in Portugal has never been more expensive, with the country’s average house price soaring past €2,000 per square meter for the first time, according to new data released by the National Institute of Statistics (INE).
Lisbon Leads as Most Expensive Region
As expected, the Lisbon region holds its place as the priciest area in Portugal, with average property prices now exceeding €3,000 per square meter. The Algarve comes in second, followed closely by the Setúbal Peninsula, both reflecting strong demand for housing in Portugal’s most sought-after coastal and metropolitan areas.
More New Homes, Still Rising Prices
Contrary to common expectations, the recent increase in housing construction has not led to lower prices. INE’s report highlights a surprising trend: from 2019 to 2024, some of the highest spikes in property prices occurred in periods of the most active construction. In fact, the regions with the greatest number of new homes built coincided with the sharpest price rises.
This data challenges the popular belief that simply increasing housing supply will automatically bring prices down. The ongoing surge in property values suggests that factors such as strong demand from foreign buyers, tourism growth, and investment interest are continuing to drive prices higher, even as more units become available.
Portugal’s Real Estate Market: What’s Next?
With the national average now above €2,000 per square meter and no signs of slowing demand, experts predict that property affordability will remain a key issue for both locals and newcomers. Market observers are calling for more nuanced policy solutions that address both supply and demand factors to tackle housing affordability in Portugal.
Key Takeaways:
- Portugal’s average house price exceeds €2,000/m² for the first time (INE).
- Lisbon remains the most expensive region, topping €3,000/m².
- Algarve and Setúbal Peninsula are also among the highest-priced areas.
- More construction has not led to lower prices; supply growth coincides with price increases.
- Portugal’s real estate market remains strong, fueled by high demand and investment.
Stay tuned for more updates and expert analysis on the evolving Portuguese real estate market.
