Exceptional Growth in the Real Estate Market
House prices in Portugal are experiencing a phase of strong dynamism and high pressure, with significant increases in both valuation and transaction volume. According to data from the National Statistics Institute (INE), in the first quarter of 2025 the median price of homes reached €1,951/m², reflecting a growth of 18.7% compared to the previous year — the highest since the beginning of statistical records.

Transaction volume increased by 24.9%, with over 40,000 homes sold, reflecting the positive impact of falling interest rates and public incentives for home purchases, even amid a global context of economic uncertainty.

Regions with the Highest Prices
Lisbon and the metropolitan areas remain at the top in terms of prices, reaching impressive values exceeding €4,000/m² in premium zones. The Algarve and Madeira also face high property values. The disparity between coastal and inland regions is evident, with interior regions still having prices below €700/m².

Key data on prices by region:

  • Lisbon: €4,492/m²

  • Cascais: €4,477/m²

  • Oeiras: €3,983/m²

  • Porto: €3,066/m²

  • Odivelas: €3,048/m²

  • Algarve: €2,929/m²

  • Autonomous Region of Madeira: €2,518/m²

  • Beiras and Serra da Estrela (cheapest): €698/m²

Municipalities with the Highest Relative Increases
Some peripheral and suburban municipalities stood out for their sharp price increases, indicating that demand is shifting toward more affordable alternatives outside major urban centers.

Year-on-year growth highlights:

  • Santa Maria da Feira: +27%

  • Maia: +22.7%

  • Guimarães: +22.7%

  • Vila Nova de Famalicão: +22.6%

  • Oeiras: +21.4%

Influence of Foreign Buyers
Foreign buyers continue to be a key driver in rising house prices, especially in Lisbon and Porto, where the amounts paid by foreigners exceed those paid by national residents by more than 50%.

Key indicators:

  • Median price of homes bought by foreigners: €2,573/m² (+14.5% compared to 2024)

  • Median price of homes bought by national residents: €1,931/m² (+19.5%)

  • Price difference in Lisbon for foreigners vs. nationals: +52.5%

  • Equivalent difference in the Porto Metropolitan Area: +32.3%

Transaction Profile and Limited Supply
Despite high prices, most sales are for pre-owned properties; however, there has been a growth of more than 25% in new home sales, indicating a mismatch between supply and demand.

Relevant facts:

  • The overwhelming majority of sales are existing homes

  • Growth in new home sales exceeds 25%

  • Delays in residential supply expansion contribute to price pressure

  • Property rehabilitation is an increasingly popular solution for buyers

Challenges and Future Outlook
The rapid rise in house prices raises concerns about market sustainability and housing access, especially for young people and families. Despite support measures and easier credit, the financial effort required to buy a home remains high, affecting mobility and quality of life.

The current scenario demands:

  • Balanced public policies to increase supply

  • Sustainable investment in the real estate sector

  • Solutions that ensure the right to housing for all

  • Ongoing monitoring to prevent bubbles and excessive speculation

Portugal is at a critical moment in the housing market, with house prices at historic highs and an active market full of challenges. With a balance between investment and regulation, it will be possible to ensure a more accessible and sustainable future for those seeking a home.