Portugal experienced a 6.3% increase in property prices
In a significant shift in Portugal's real estate market, house prices are generally increasing in major cities, driven by strong demand, limited supply, and investor interest. However, Lisbon's prices are rising more moderately or stabilizing compared to other cities, due to its high price base and the relatively better value offered in other cities.
The surge in house prices can be attributed to the allure of major city amenities at more affordable costs in cities like Porto, which has a house price per square meter of €3,937–€4,883, a 4.5% increase year-on-year. Meanwhile, the Algarve region, with its high-end resorts and coastal towns, has an average price of €3,513–€4,385 per square meter, showing a 5.5% increase.
Cities such as Braga, Coimbra, and Évora, often with property prices below €2,000/m², are considered more affordable and have growth prospects. These secondary cities, like Setúbal with a 17.9% increase in house prices, are attracting attention due to their lower prices, cultural appeal, and university presence.
Lisbon remains the most expensive city for house purchases in Portugal, with city center prices around €6,934 per square meter in 2025. The capital's high prices limit the pool of buyers able to enter the market, which moderates price growth. In contrast, cities like Porto offer around €4,883/m², attracting buyers and investors seeking major city amenities but at a more affordable cost.
Outside of the major cities, Northern Portugal offers the most affordable housing options, with an average price of €1,903 per square meter. Cities like Braga, Coimbra, Évora, and other emerging markets like Setúbal show strong growth potential due to their lower prices and cultural appeal.
In summary, while Lisbon remains the most expensive city for house purchases in Portugal, its market is stabilizing due to high prices. Meanwhile, cities like Porto and the Algarve are experiencing rising prices driven by demand and investment appeal, and Northern Portugal offers the most affordable housing options with potential for appreciation. The differences in price dynamics reflect varied local demand, supply constraints, and investor focus across regions.
- Investors, driven by the appeal of lower costs and major city amenities, are showing increasing interest in Porto, where house prices per square meter range from €3,937 to €4,883, demonstrating a 4.5% year-on-year increase.
- The Algarve region, which boasts high-end resorts and coastal towns, also shows a 5.5% yearly price increase, with an average price of €3,513 to €4,385 per square meter.
- Cities like Braga, Coimbra, and Évora, known for their lower prices below €2,000 per square meter, are attracting attention due to their growth potential and increased demand from buyers and investors who seek affordable real estate options with strong cultural appeal.
