Rise of 8.5% in property values
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The housing market in Portugal experienced a significant surge in July 2024, with an 8.5% increase in home prices. This growth was driven by a combination of factors, including limited housing supply, low interest rates, more attractive mortgage terms, and new governmental benefits for young homebuyers.
According to idealista’s price index and related market analyses, the rise in housing prices reflects structural demand supported by favourable financing conditions and government measures, against a backdrop of constrained supply. This has created sustained upward pressure on housing prices throughout Portugal.
Santarém, Setúbal, and Guarda topped the list of district capitals with the highest increase in home prices, recording increases of 24%, 20.8%, and 18.5% respectively. Other cities like Lisbon, Porto, Coimbra, Faro, Braga, Évora, Funchal, Ponta Delgada, Viana do Castelo, Vila Real, Leiria, Viseu, Portalegre, Castelo Branco, and Aveiro also experienced an increase in housing costs.
Lisbon remains the most expensive city for housing with an average price of €5,829 per square meter. Setúbal ranks fifth with a housing price of €2,920 per square meter, while Guarda is among the least expensive cities for housing at €957 per square meter. Viseu has a housing price of €1,537 per square meter, and Coimbra has a housing price of €2,067 per square meter.
The overall national median price for housing in July 2024 was around €2,926 per square meter, reflecting substantial growth compared to previous years. The increases in these cities ranged from 13.1% in Ponta Delgada to 5.9% in Porto. Portalegre is the most economical city for housing at €871 per square meter, while Santarém has a housing price of €1,525 per square meter.
In contrast, home prices in Bragança fell 0.6%. In Aveiro, home prices remained virtually stable between July 2025 and the same month last year. Bragança is among the least expensive cities for housing at €989 per square meter.
The government incentives aimed at young homebuyers encourage purchases, further stimulating the market. These benefits include exemption from IMT (property transfer tax) on public guarantees.
The increase in housing costs was observed in the vast majority of the district capitals analyzed. The 8.5% July 2024 increase is part of a broader trend of rising property values in Portugal, with earlier months and quarters also showing strong growth, backed by high volumes of homes sold and a persistent supply-demand imbalance.
- The rising housing market in Portugal, with an increase in home prices by 8.5% in July 2024, has attracted investors who are keen on capitalizing on the promising real-estate sector, particularly in districts like Santarém, Setúblo, and Guarda.
- To stimulate investment in the housing market, the government has introduced beneficial financing conditions and incentives for young homebuyers, such as exemption from IMT (property transfer tax) on public guarantees, which further fuels the increasing demand for housing in Portugal.
