House prices in Portugal have soared 6.8% in early 2025 compared to December 2024, reaching an all-time high with a median of €3,019 per square meter, according to the latest Idealista price index. This marks the second straight month house prices have set new records, outpacing last quarter with an increase of 2.6%.
Lisbon remains Portugal’s most expensive city, with prices averaging €5,995/m². It’s followed by Porto (€3,885/m²) and Funchal (€3,861/m²). However, the biggest annual increases were seen outside the main urban centers: Santarém jumped an impressive 27.1%, Beja 20%, and Setúbal 17.2%. Vila Real was the only district capital to report a price drop, down 6.1% year-on-year.
Island and Regional Standouts: Azores & Porto Santo
Across all regions, prices increased year-on-year. Porto Santo, a small island, saw a remarkable annual appreciation of 42.6%. The district of Lisbon continues to lead on price at €4,573/m², ahead of Faro and Setúbal.
On a regional level, the Autonomous Region of the Azores posted the strongest annual growth—up 20.1%—followed by Madeira (14.6%), Alentejo (14.3%), and Centro (10.8%). The North region remained mostly stable with a small uptick of just 0.5%. The Lisbon Metropolitan Area leads the country with an average value of €4,239/m², while the Center region holds the most affordable prices at €1,716/m².
About the Data
These figures come from the Idealista price index, which uses advertised prices while excluding outliers and off-market listings to reflect true market medians. As Portugal’s property market sees continued demand, buyers and investors should stay alert to both record-high values and pockets of fast appreciation—especially in up-and-coming regions like the Azores and Porto Santo.
For more on the latest Portugal real estate trends, keep following our updates.
