Portugal House Prices in 2026: Where Values Are Rising Fastest and What the Latest Data Reveals

Portugal House Prices: Key Takeaways

• The average house price per square metre has surged to €2,065/m² as of Q2 2025;
   

• This represents a year-on-year growth of 19% compared to Q2 2024;
   

• The transaction volume also increased, with 15.6% more sales than the same quarter last year;
   

• The most expensive regions are the Greater Lisbon area and the Algarve.
   

How Much Does Property Cost in Portugal in 2026?

Top 5 Most Expensive Regions

• Greater Lisbon: €3,403/m²;
   

• The Algarve: €3,123/m²;
   

• Setúbal: €2,511/m²;
   

• Madeira Islands: €2,381/m²;
   

• Porto Metropolitan Area: €2,278/m²;
   

• Lisbon and Porto command particularly high property prices due to a concentration of jobs, international business activity, and economic opportunities that consistently attract both domestic and foreign buyers. Additionally, these areas have some of the highest rental prices in the country, a key factor for buyers looking to purchase a property for rental.
   

• Property in Setúbal has seen increased interest from buyers eager to escape higher Lisbon prices without compromising on proximity to the advantages of city life.
   

• Price increases in the Algarve and Madeira are more related to lifestyle factors, as many domestic and international buyers value these regions for their beautiful landscapes and beaches and strong lifestyle appeal, as well as the availability of major transport hubs and essential infrastructure.
   

• The strong demand in all these areas has far exceeded the available housing stock, while at the same time, limited land availability, planning restrictions, and slow new construction constrain supply, pushing prices upward as competition for well-located properties intensifies.
   

• The region with the lowest median price in Portugal as of Q2 2025 is Beiras e Serra de Estrela, with an average price of €715/m². This region, located in the east of the country, along the border with Spain, is mountainous and sparsely populated. Limited essential infrastructure and transport links make this area less attractive, especially for foreign buyers.
   

Where Are House Prices Rising the Most in Portugal?

The Regions with the Fastest Growth

• Baixo Alentejo: +38.7% (highest national growth rate);
   

• Douro: 31.8%;
   

• Ave: 31.2%
   

• Setúbal: 2,511 €/m2 (22.6% increase);
   

• Greater Lisbon: 3,403 €/m2 (21.5% increase).

Metropolitan Acceleration

Lisbon

• Santo António: €6,031/m²;
   

• Parque das Nações: €5,840/m²;
   

• Campo de Ourique: €5,528/m²;
   

• Estrela: €5,487/m²;
   

• Misericórdia: €5,340/m²
   

• Beato: 32.3% increase.

Porto

• Aldoar, Foz do Douro e Nevogilde: €3,836/m²;

• Lordelo do Ouro e Massarelos: €3,333/m² (+10.5%).

Why “Secondary” Regions are Outperforming

• This may suggest that homebuyers and investors, wary of the unprecedented prices in urban areas, are looking further afield, especially towards the North and the Douro region, known for its wine production.
   

• The top regions all feature regional urban centres and good transport links to Lisbon or Porto, as well as the lifestyle advantages that come with living outside of the city.
   

• These factors make them appealing choices for both domestic and foreign buyers even before considering the fact that average prices in these regions are often less than a third of those in the main cities.
   

• These regions are also well-suited to remote workers, who do not need to be based in dense urban centres and can benefit from the lower cost of living in these areas.

Market Trends in Portugal’s Property Prices

• Record-setting 19% YoY growth;
   

• Year-on-year growth has accelerated rapidly from 5% in Q1 2024;
   

• A total of 165,405 transactions in the last 12 months;
   

• Median price of €1,923/m² over the last 12 months, an increase of 15.8% compared to the previous 12 months.
   

• Supply constraints: Especially in the most sought-after areas, such as in Lisbon and Porto, demand for housing significantly outstrips supply.
   

• Construction lag: Construction of new housing has not yet caught up with the accelerating increase in demand.
   

• Empty and vacant houses: A large number of houses across Portugal stand empty and unused and a significant proportion of these are not for sale or being renovated, despite efforts to valorise this essential housing stock.

Foreign Buyers vs National Buyers

• Foreign buyers pay a median price of €2,750/m²;
   

• National buyers pay a median of €2,042/m²;
   

• That makes for an average premium of €708/m2 or 34.7% for foreign buyers across the country.
   

• Foreign buyers in Lisbon pay a substantial premium of 61.9% more than national buyers, while those buying in Porto pay 29% more.
   

• Location preference: Foreign buyers are more likely to purchase property in one of the most expensive regions or municipalities in Portugal, as these are generally regarded as more promising investments as well as being better served for international travel connections.
   

• New-build bias: Foreign buyers are more likely to purchase newly built properties than existing ones, which also means they are likely to pay more.
   

• Purchasing power differences: Foreign buyers often have greater purchasing power than domestic buyers, meaning they are able to purchase more expensive property.

New and Renovated vs Existing Homes

• Cascais: €5,226 per m².
   

• Lisboa: €5,105 per m².
   

• Energy Efficiency: Recently built houses usually have better energy efficiency than older homes due to improved insulation, double glazing, air conditioning, and integrated solar panels.
   

• Condition: Buying an existing house means also buying any deterioration or structural issues it might have. A new build will not only be freshly finished but also likely have professional guarantees about its condition. Many buyers are willing to pay more for this peace of mind.
   

• Modern Design: Most new-build houses feature much more modern aesthetics than older houses. For many buyers, this can be a key criterion. Nobody wants to live in a house they don’t like the look of.
   

• Personal Choice: If a buyer purchases a new house while it is still under construction, they may be able to make certain choices about the design and finish of the house, an advantage for which many people are willing to pay a premium.

House Prices in Portugal 2026: What the Data Suggests

• Increasing Momentum: Momentum indicators such as transaction volume and growth rate are rapidly increasing, and this year’s figures don’t suggest any slowing down of this trend.
   

• Foreign buyer premium data: Continued discrepancies between the median prices paid by foreign buyers and national buyers are likely to continue based on the data for this year and previous years.
   

• New vs. existing home pricing: The gap in price between new and existing homes seems likely to remain as well, although increased levels of construction or new initiatives to valorise vacant homes could change this before this end of the year.

How to Buy an Apartment or House in Portugal in 2026

1. Obtain a NIF Number: Essential for all fiscal activities, this can be acquired through a local tax office or fiscal representative.
    

2. Open a Portuguese Bank Account: Facilitates transactions and ongoing expenses like utilities and taxes.
    

3. Hire Legal Representation: A lawyer ensures due diligence, reviews contracts, and verifies the property's legal status.
    

4. Property Search: Collaborate with your real estate agent to find properties that meet your needs.
    

5. Make an Offer: Once you find a suitable property, submit a formal offer through your agent.
    

6. Promissory Contract (CPCV): A preliminary agreement outlining the terms of the sale, typically accompanied by a deposit.
    

7. Final Deed (Escritura Pública): The official transfer of ownership, signed before a notary.
    

8. Registration: Register the property in your name at the Land Registry and Tax Office.

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