Home Sales in Portugal Remain Dynamic with Prices Continuing to Rise

Home sales in Portugal remain highly dynamic, driven by competitive mortgage loan offers, increasingly lower interest rates, and new support measures for young people (such as IMT exemptions and public guarantees). However, housing supply still fails to keep up with this growth. That’s why asking prices for homes on the market continue to rise, having increased by 8% in June compared to the same month in 2024. Thus, buying a home in Portugal reached a median cost of €2,898 per square meter at the end of June, according to idealista’s price index. On a quarterly basis, prices rose by 4.4%.

House Prices Rising in Major Cities

Among the 18 district capitals (or autonomous regions), home prices rose in 15 major cities in June, with Setúbal (20%), Santarém (15.3%), Évora (13.9%), and Ponta Delgada (13.6%) leading the list. These were followed by Faro (10.3%), Viana do Castelo (10.1%), Coimbra (9.5%), Funchal (7.6%), Braga (6.5%), Porto (6%), Portalegre (4.8%), Vila Real (4%), Leiria (4%), Lisbon (2.3%), and Bragança (1.6%).

In Aveiro, house prices remained practically stable during this period (0.5%). Conversely, prices dropped in Castelo Branco (-3.1%) and Viseu (-1.9%).

Lisbon continues to be the most expensive city to buy a home: €5,769/m2. Porto (€3,792/m2) and Funchal (€3,645/m2) take second and third place, respectively. They are followed by Faro (€3,285/m2), Setúbal (€2,870/m2), Aveiro (€2,546/m2), Évora (€2,463/m2), Ponta Delgada (€2,194/m2), Coimbra (€2,058/m2), Braga (€2,049/m2), Viana do Castelo (€1,986/m2), and Leiria (€1,582/m2).

The most affordable cities to buy a home are Portalegre (€843/m2), Castelo Branco (€880/m2), Bragança (€990/m2), Vila Real (€1,319/m2), Santarém (€1,446/m2), and Viseu (€1,505/m2).

House Prices in Major Cities

Median Price in June (€/m2)
Year-over-Year Variation (June 2025 vs June 2024)

District/Autonomous Region Capital Price (€/m2) Annual Change (%)
Setúbal 2,870 20.0%
Santarém 1,446 15.3%
Évora 2,463 13.9%
Ponta Delgada 2,194 13.6%
Faro 3,285 10.3%
Viana do Castelo 1,986 10.1%
Coimbra 2,058 9.5%
Funchal 3,645 7.6%
Braga 2,049 6.5%
Porto 3,792 6.0%
Portalegre 843 4.8%
Vila Real 1,319 4.0%
Leiria 1,582 4.0%
Lisbon 5,769 2.3%
Bragança 990 1.6%
Aveiro 2,546 0.5%
Viseu 1,505 −1.9%
Castelo Branco 880 −3.1%

Housing Costs Rise Over 10% in 13 Districts and Islands

Analyzing 24 districts and islands with representative samples, it appears that homes for sale have become more expensive in almost every region over the past year. Only in Castelo Branco did prices remain stable.

The most significant price increases for homes to buy were observed on Porto Santo Island (29.4%), São Miguel Island (23.4%), and Évora (18.5%). These were followed by Terceira Island (17.9%), Beja (17.8%), Santarém (16%), Portalegre (15.8%), Setúbal (15.6%), Guarda (12.5%), Madeira Island (11%), Aveiro (10.5%), Porto (10.2%), and Faro (10%). These 13 districts and islands saw price increases above 10%, exceeding the national average.

Below this level, home prices rose in Vila Real (8%), Viana do Castelo (7.7%), Lisbon (7.6%), Leiria (7.1%), Braga (5.6%), Pico Island (4.8%), Bragança (3.8%), São Jorge Island (3.7%), Coimbra (2.6%), and Viseu (2.1%).

Most Expensive Districts and Islands to Buy a Home

District/Island Price (€/m2)
Lisbon 4,407
Faro 3,712
Madeira Island 3,448
Setúbal 2,945
Porto 2,926
Porto Santo Island 2,908
São Miguel Island 2,180
Aveiro 1,889
Braga 1,752
Leiria 1,746
Évora 1,544
Pico Island 1,527
Viana do Castelo 1,488
Coimbra 1,445
Terceira Island 1,443
Santarém 1,359
São Jorge Island 1,295

Most Affordable Places to Buy a Home

District Price (€/m2)
Guarda 768
Portalegre 848
Castelo Branco 868
Bragança 914
Vila Real 1,062
Viseu 1,144
Beja 1,278

Home Prices Rising Across All Regions

Over the past 12 months, home prices have risen in all regions of the country. Leading the increases is the Autonomous Region of the Azores (19.5%), followed by Alentejo (14.1%), Autonomous Region of Madeira (11.2%), Algarve (10%), Lisbon Metropolitan Area (9.5%), North (8.6%), and Center (7.8%).

Greater Lisbon, with €4,076/m2, remains the most expensive region to buy a home, followed by the Algarve (€3,712/m2), Madeira (€3,439/m2), and the North (€2,425/m2).

At the bottom of the list are the Center (€1,562/m2), Alentejo (€1,755/m2), and the Azores (€1,834/m2) — the most affordable regions to buy property.

Methodology: idealista Property Price Index

To create the idealista real estate price index, listing prices (based on built square meters) published by idealista advertisers are analyzed. Outliers and listings with prices far from market values are excluded.

The data also includes listings for single-family homes, and ads that have been inactive for an extended period are discarded. The final result is calculated using the median of all valid listings in each market.