Interest in Buying a Home in Portugal Remains High

Interest in buying a home in Portugal remains strong. However, families are faced with a double reality: more accessible mortgage loan offers, but in contrast, rising house prices. And nothing seems to be slowing down this upward trend, which is mainly explained by the imbalance between high demand and the limited supply of housing in the national market.

The idealista price index reveals that the price of homes for sale in the country rose by 8.7% in October compared to the same month in 2024, reaching a median price of €2,970 per square meter (€/m2). In quarterly terms, prices rose by 1.5%.

More Expensive Homes in All Major Cities

In October, house prices increased in all 19 district capitals and autonomous regions analyzed, with Beja (30.6%), Santarém (27.8%), and Portalegre (24.1%) leading the list of the biggest annual rises. They are followed by Guarda (21.0%), Setúbal (19.2%), Ponta Delgada (12.6%), Funchal (12.2%), Évora (11.7%), Viana do Castelo (11.1%), Coimbra (10.3%), Braga (10%), Leiria (9.2%), Aveiro (9%), Viseu (7.9%), Faro (7.2%), Bragança (4.5%), Porto (4.3%), Lisbon (4.1%), and Vila Real (3.7%).

Lisbon continues to be the most expensive city to buy a house, at €5,886/m2. Funchal (€3,907/m2) and Porto (€3,844/m2) occupy the second and third places, respectively. They are followed by Faro (€3,370/m2), Setúbal (€2,964/m2), Aveiro (€2,705/m2), Évora (€2,516/m2), Ponta Delgada (€2,364/m2), Coimbra (€2,208/m2), Braga (€2,118/m2), Viana do Castelo (€2,074/m2), Leiria (€1,719/m2), Santarém (€1,655/m2), and Viseu (€1,643/m2).

The most affordable cities to buy a home are Vila Real (€1,397/m2), Beja (€1,326/m2), Bragança (€1,060/m2), Guarda (€1,005/m2), and Portalegre (€1,003/m2).

House Prices in Major Cities

Median value in October (€/m2)
Year-on-year variation between October 2025 and the same month in 2024 (%)

District capitals / Autonomous regions Price (€/m2) Annual variation (%)
Beja 1,326 30.6%
Santarém 1,655 27.8%
Portalegre 1,003 24.1%
Guarda 1,005 21.0%
Setúbal 2,964 19.2%
Ponta Delgada 2,364 12.6%
Funchal 3,907 12.2%
Évora 2,516 11.7%
Viana do Castelo 2,074 11.1%
Coimbra 2,208 10.3%
Braga 2,118 10.0%
Leiria 1,719 9.2%
Aveiro 2,705 9.0%
Viseu 1,643 7.9%
Faro 3,370 7.2%
Bragança 1,060 4.5%
Porto 3,844 4.3%
Lisbon 5,886 4.1%
Vila Real 1,397 3.7%

Source: idealista

Islands Record Price Increases Above 20%

Looking at the 25 districts and islands, it becomes evident that homes for sale became more expensive over the last year in almost all territories – the only exception was Bragança, which saw a price correction of -3.2%.

The largest price increases were recorded in Porto Santo Island (29.9%), Terceira Island (21.5%), São Miguel Island (20.5%), São Jorge Island (20.2%), Santarém (19.6%), Setúbal (18.5%), Pico Island (17.3%), Beja (16.1%), Castelo Branco (15.9%), Guarda (15.9%), Madeira Island (15.4%), Portalegre (15%), Aveiro (14.2%), Viseu (14.1%), Braga (11.6%), and Leiria (11%).

There were also eight territories with single-digit housing price increases: Faro (9.3%), Évora (9.2%), Viana do Castelo (8.5%), Lisbon (8.1%), Porto (7.3%), Santa Maria Island (6.4%), Coimbra (5.7%), and Vila Real (4.7%).

The ranking of the most expensive districts and islands to buy a home is led by Lisbon (€4,487/m2), followed by Faro (€3,849/m2), Madeira Island (€3,693/m2), Porto Santo Island (€3,226/m2), Setúbal (€3,114/m2), Porto (€2,992/m2), São Miguel Island (€2,246/m2), Aveiro (€1,975/m2), Leiria (€1,877/m2), Braga (€1,832/m2), Pico Island (€1,619/m2), Viana do Castelo (€1,604/m2), Terceira Island (€1,599/m2), Coimbra (€1,548/m2), Évora (€1,525/m2), Santarém (€1,479/m2), São Jorge Island (€1,448/m2), Santa Maria Island (€1,425/m2), and Beja (€1,352/m2).

The most affordable areas to buy a home are Viseu (€1,252/m2), Vila Real (€1,088/m2), Castelo Branco (€995/m2), Bragança (€913/m2), Portalegre (€893/m2), and Guarda (€812/m2).

House Prices by Districts and Islands

Median value in October (€/m2)
Year-on-year variation between October 2025 and the same month in 2024 (%)

Districts / Islands Price (€/m2) Annual variation (%)
Porto Santo (Island) 3,226 29.9%
Terceira (Island) 1,599 21.5%
São Miguel (Island) 2,246 20.5%
São Jorge (Island) 1,448 20.2%
Santarém 1,479 19.6%
Setúbal 3,114 18.5%
Pico (Island) 1,619 17.3%
Beja 1,352 16.1%
Guarda 812 15.9%
Castelo Branco 995 15.9%
Madeira (Island) 3,693 15.4%
Portalegre 893 15.0%
Aveiro 1,975 14.2%
Viseu 1,252 14.1%
Braga 1,832 11.6%
Leiria 1,877 11.0%

No representative sample for Faial Island
Source: idealista

Rise in House Prices Felt Across All Regions

Over the past 12 months, house prices have increased in all regions of the country. Leading the increases is the Autonomous Region of the Azores, with an annual variation of 20.8%, followed by the Alentejo (18.7%), Autonomous Region of Madeira (15.6%), Center (11.0%), Lisbon Metropolitan Area (9.6%), Algarve (9.3%), and North (6.5%).

The Lisbon Metropolitan Area, with €4,151/m2, remains the most expensive region to buy a home, followed by the Algarve (€3,849/m2), the Autonomous Region of Madeira (€3,684/m2), and the North (€2,471/m2). They are followed by the Autonomous Region of the Azores (€1,931/m2), the Alentejo (€1,904/m2), and the Center (€1,651/m2), which are the most affordable regions to buy a home.

Buying Cheaper Homes

São Miguel, Azores
Photo by Regimantas Danys on Pexels

idealista Real Estate Price Index

To compile the idealista real estate price index, the asking prices (based on built square meters) published by advertisers on idealista are analyzed. Outlier listings and those with unrealistic prices are excluded from the statistics.

The typology “single-family homes” is included, and all listings that have been inactive in the database for some time without any user interaction are discarded. The final result is obtained through the median of all valid listings in each market.