Portugal’s real estate market is making headlines as housing prices soar to record-breaking heights. According to the latest Confidencial Imobiliário Price Index, published since 1988, September 2025 witnessed an unprecedented annual home price appreciation of 22.8% — a historical milestone for the country’s property sector.
This surge marks the highest year-on-year increase ever recorded by the index. In comparison, the previous record was set in November 1991, when prices grew by 21.1%. This year, Portugal’s property market surpassed even that, with August’s appreciation reaching 21.6%, and September’s figure climbing to new heights.
Steady Climb Throughout 2025
House prices in Portugal have shown persistent growth throughout 2025, consistently rising by about 2.0% each month since January. September continued this trend, with a 2.4% monthly increase in the value of home sales. The year’s sharp upward trajectory is reflected in the jump from an 11.0% annual growth rate at the end of 2024 to the current 22.8%, as reported by Confidencial Imobiliário.
The market’s quarterly performance also broke records, with a 6.9% rise — the highest in five years. Previously, quarterly growth figures hovered around 6.0%.
Nearly Doubling Prices in Five Years
The transformation in Portugal’s housing market over the past five years is nothing short of dramatic. From September 2020 to September 2025, property prices across mainland Portugal have surged by 97.4%. According to the SIR – Residential Information System, the average sale price per square meter climbed from €1,573 in 2020 to €2,885 by September 2025.
This rapid appreciation underscores Portugal’s growing appeal among both domestic and international buyers. The country’s stable economy, lifestyle allure, and investment potential continue to fuel demand, putting upward pressure on property values.
Future Outlook
These record-breaking figures point to a robust real estate market, but also pose challenges for affordability — particularly for first-time buyers and locals. Market analysts will be watching closely to see if this upward trend continues into 2025 or if policy interventions emerge to temper price growth.
For now, Portugal’s property market stands out as one of Europe’s hottest, setting new benchmarks and drawing attention from investors at home and abroad.
