Discover the latest Portugal real estate prices as the average property sale rises to €426,000—a 15% year-on-year increase—while rents hit an all-time high of €1,300 in August 2024. Explore what’s driving housing market growth and what it means for buyers and renters.
If you’re considering investing in property, Portugal continues to show robust growth in its real estate market. According to the latest figures from Imovirtual’s monthly barometer, the average sale price of real estate in Portugal reached €426,000 in August 2024, marking a 1% increase from July and an impressive 15% jump compared to August 2023 (€369,000). Rents are also on the rise, with the national average hitting a record €1,300 per month (2% monthly, 4% year-on-year).
Rental Market: Lisbon, Faro, and Madeira Lead
When it comes to renting, Lisbon remains the most expensive district with average rents of €1,710 per month (+4%). Faro follows at €1,300 (+4%), and Madeira at €1,500, despite a 6% monthly drop. Interestingly, São Miguel experienced a significant 25% monthly decrease to €900, though it still shows a 13% increase compared to last year.
Notably, Portalegre saw the largest monthly jump in rents, climbing by 27% to €700. Beja mirrored this value with similar gains. In the North, Porto’s average rent rose by 5% to €1,150, and Coimbra recorded an impressive 7% monthly leap, bringing average rents to €800.
Property Sale Prices: Lisbon and the Algarve on Top
On the sales side, Lisbon leads Portugal’s property market with an average sale price of €650,000 (+1%). The Algarve’s Faro comes in second at €550,000 (+1%), while Madeira stands out with a 3% increase to €575,000.
São Miguel, although remaining at €399,000, recorded the highest annual growth at 29%. In the North, Porto reached €425,000 (+2%), with Aveiro and Braga following at €387,500 (+3%) and €348,000 (+2%) respectively. Setúbal’s average sale price climbed to €450,000 (+1%), while Évora reached €264,500 (+2%).
Why Are Portugal’s Real Estate Prices Rising?
Portugal’s popularity among expats, digital nomads, and foreign investors has been a significant driver of property price growth. Demand continues to outpace supply in many regions, especially in coastal cities and prime tourist destinations. The golden visa program, favorable tax policies, and Portugal’s high quality of life all contribute to the sustained increase in real estate values.
Key Takeaways
- Average property sale price in Portugal: €426,000 (up 15% YoY)
- Average rent: €1,300 per month (up 4% YoY)
- Lisbon leads with the highest sale (€650,000) and rent (€1,710) prices
- Portalegre experiences the highest monthly rent increase (+27%)
- São Miguel saw the highest annual sales price growth (+29%)
Portugal’s real estate market continues its strong upward trajectory, driven by both domestic and international demand. Whether you’re looking to buy or rent, understanding local trends is key to making an informed decision. Stay tuned for more updates on Portugal real estate prices and discover your next investment opportunity in this thriving market!
