Demand for Homes to Buy in Portugal Remains High

Demand for homes to buy in Portugal remains high, fueled by incentives such as lower interest rates, the Youth IMT exemption, and public guarantees for those under 35, alongside the high cost of renting. Still, the market is showing signs of stabilization in the rate of house price increases. In May, the median cost of buying a home reached 2,851 euros per square meter (euros/m²), according to idealista’s price index, reflecting a year-on-year increase of 7.4% — the same annual increase recorded in April. On a quarterly basis, house prices rose by 4%.

House Prices Rising in 15 Major Cities

In May, buying a home became more expensive in 15 district capitals (or autonomous regions), with Beja (28.8%), Ponta Delgada (19.2%), Setúbal (18.7%), and Santarém (16%) leading the list. House prices also rose in Guarda (12.3%), Coimbra (12.2%), Faro (11.3%), Évora (11%), Funchal (6.5%), Braga (6%), Porto (5.9%), Leiria (4.3%), Portalegre (3.3%), Lisbon (1.8%), and Bragança (1.2%).

In Aveiro, the cost of housing remained virtually stable between May 2025 and the same period last year (0.4%). In contrast, prices fell in Viseu (-4.9%), Viana do Castelo (-2.4%), and Castelo Branco (-1.1%).

Lisbon remains the most expensive city to buy a home: 5,720 euros/m². Porto (3,768 euros/m²) and Funchal (3,574 euros/m²) rank second and third, respectively. They are followed by Faro (3,289 euros/m²), Setúbal (2,800 euros/m²), Aveiro (2,526 euros/m²), Évora (2,411 euros/m²), Ponta Delgada (2,174 euros/m²), Coimbra (2,079 euros/m²), Braga (2,049 euros/m²), Viana do Castelo (1,887 euros/m²), and Leiria (1,613 euros/m²).

The most affordable cities to buy property in Portugal are Portalegre (840 euros/m²), Castelo Branco (893 euros/m²), Guarda (914 euros/m²), Bragança (977 euros/m²), Beja (1,192 euros/m²), Santarém (1,415 euros/m²), and Viseu (1,471 euros/m²).

House Prices to Buy in Major Cities
Median Value in May (euros/m²)
Change from May 2025 vs. same month previous year (%)

District Capitals / Autonomous Regions Price (euros/m²) Annual Change (%)
Aveiro 2,526 0.4%
Beja 1,192 28.8%
Braga 2,049 6.0%
Bragança 977 1.2%
Castelo Branco 893 −1.1%
Coimbra 2,079 12.2%
Évora 2,411 11.0%
Faro 3,289 11.3%
Funchal 3,574 6.5%
Guarda 914 12.3%
Leiria 1,613 4.3%
Lisbon 5,720 1.8%
Ponta Delgada 2,174 19.2%
Portalegre 840 3.3%
Porto 3,768 5.9%
Santarém 1,415 16.0%
Setúbal 2,800 18.7%
Viana do Castelo 1,887 −2.4%
Viseu 1,471 −4.9%

Source: idealista
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Islands Show Highest Housing Cost Increases

Analyzing the 24 districts and islands with representative samples, the largest increases in house prices over the past year occurred on the island of Porto Santo (26.8%), São Miguel Island (25.8%), and Terceira Island (19.7%).

Homes for sale also appreciated in Évora (16.7%), Portalegre (15%), Setúbal (13.9%), Santarém (12.3%), Beja (11.9%), Guarda (11.7%), Vila Real (11.5%), Porto (9.9%), Aveiro (9.6%), Faro (9.2%), Madeira Island (9.1%), Braga (8.6%), Lisbon (7.4%), Coimbra (5.7%), Leiria (4.2%), São Jorge Island (2.8%), Castelo Branco (2.5%), and Bragança (2%).

On the other hand, price decreases were only observed on Pico Island (-0.6%), Viseu (-1.2%), and Viana do Castelo (-2%).

The ranking of the most expensive districts and islands to buy a home is led by Lisbon (4,360 euros/m²), followed by Faro (3,664 euros/m²), Madeira Island (3,351 euros/m²), Porto Santo Island (2,875 euros/m²), Porto (2,869 euros/m²), Setúbal (2,862 euros/m²), São Miguel Island (2,124 euros/m²), Aveiro (1,873 euros/m²), Braga (1,749 euros/m²), Leiria (1,720 euros/m²), Évora (1,498 euros/m²), Pico Island (1,471 euros/m²), Coimbra (1,464 euros/m²), Viana do Castelo (1,453 euros/m²), Terceira Island (1,444 euros/m²), Santarém (1,312 euros/m²), and São Jorge Island (1,251 euros/m²).

The most affordable housing prices are found in Guarda (771 euros/m²), Portalegre (827 euros/m²), Castelo Branco (874 euros/m²), Bragança (900 euros/m²), Vila Real (1,088 euros/m²), Viseu (1,130 euros/m²), and Beja (1,246 euros/m²).

House Prices for Sale by Districts and Islands
Median Value in May (euros/m²)
Change from May 2025 vs. same month previous year (%)

Districts / Islands Price (euros/m²) Annual Change (%)
Aveiro 1,873 9.6%
Beja 1,246 11.9%
Braga 1,749 8.6%
Bragança 900 2.0%
Castelo Branco 874 2.5%
Coimbra 1,464 5.7%
Évora 1,498 16.7%
Faro 3,664 9.2%
Guarda 771 11.7%
Leiria 1,720 4.2%
Lisbon 4,360 7.4%
Portalegre 827 15.0%
Porto 2,869 9.9%
Santarém 1,312 12.3%
Setúbal 2,862 13.9%
Viana do Castelo 1,453 −2.0%
Vila Real 1,088 11.5%
Viseu 1,130 −1.2%

*No representative sample for Faial Island
Source: idealista
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Azores Registers Highest Price Increase Among Regions

Over the last 12 months, house prices for sale increased in all regions of the country. Leading the increases is the Autonomous Region of the Azores (20.8%), followed by Alentejo (13.8%), Lisbon Metropolitan Area (9.3%), Autonomous Region of Madeira (9.3%), Algarve (9.2%), North (7.3%), and Center (7%).

Greater Lisbon, with 4,020 euros/m², remains the most expensive region to buy a home, followed by the Algarve (3,664 euros/m²), the Autonomous Region of Madeira (3,342 euros/m²), and the North (2,361 euros/m²). At the opposite end are the Center (1,554 euros/m²), Alentejo (1,709 euros/m²), and the Autonomous Region of the Azores (1,709 euros/m²), which are the cheapest regions to buy a home.

Buying a Home in Portugal
São Miguel Island, Azores – Freepik

idealista Real Estate Price Index

To create the idealista real estate price index, listing prices (based on built square meters) published by advertisers on idealista are analyzed. Atypical listings and those with off-market prices are removed from the statistics.

We also include the "single-family home" typology and discard all listings in our database that have been inactive for a long time. The final result is obtained through the median of all valid listings in each market.