Portugal Real Estate: Why Lisbon Homes Are 25% Costlier Than Madrid

The Portugal real estate market is witnessing a significant surge, with Lisbon property prices now 25% higher than those in Madrid. This trend highlights the growing demand and investment potential in Lisbon real estate, making it a focal point for buyers and investors alike.

Lisbon, the vibrant capital of Portugal, has officially claimed the title of the most expensive city in the nation for purchasing a home. As of the end of June, the median price for housing in this picturesque city soared to an astonishing 5,642 euros per square meter (euros/m2), marking the highest figure recorded in the idealista series since its inception in 2015. To put this in perspective, properties in Lisbon are now priced at nearly double the national median of 2,683 euros/m2.

When we delve into the realm of real estate across the Iberian Peninsula, Lisbon maintains its prestigious position as the priciest option among the 15 most expensive district capitals in both Portugal and Spain. Data from idealista reveals that house prices in Lisbon are a staggering 25% higher than those in Madrid, which stands at 4,514 euros/m2, and 27% above the median in Barcelona, currently at 4,430 euros/m2. This is particularly noteworthy given that both Spanish cities have recently set new price records in June.

Even when compared to San Sebastián, the most expensive municipality in Spain, where prices hover around 5,461 euros/m2, Lisbon's real estate market still outshines with a 3% premium. Following Lisbon in the hierarchy of costly real estate markets in Portugal are Porto, with prices at 3,578 euros/m2, and Funchal, at 3,388 euros/m2, securing the 6th and 7th positions, respectively. Notably, only two other Portuguese cities make it onto this list: Faro, priced at 2,979 euros/m2 in 10th place, and Aveiro, languishing at the bottom with 2,534 euros/m2.

While Spanish cities dominate the list of the 15 most expensive locales for homebuyers on the Iberian Peninsula—boasting a total of 10 cities compared to Portugal's 5—Lisbon, Porto, and Funchal still manage to maintain median house prices that surpass those of significant Spanish cities like Bilbao (3,301 euros/m2) and Málaga (3,016 euros/m2). It seems that in the grand game of real estate, Lisbon is not just playing; it’s winning—at least in the price department!