Luxury house prices in Portugal rise by 6.5% in a year

In the Portuguese housing market, there are houses for sale at prices that match family incomes (although the supply is scarce). And there are also those properties among the most expensive, which only the wealthiest families can afford to buy. The latest analysis by idealista reveals that the houses for sale with the highest prices on the market (10% of the total supply) are becoming even more expensive, with prices rising by 6.5% in April 2024 compared to the same month last year. The price increase of these luxury properties in Portugal was similar to the overall market, which saw a 6.4% rise during this period.

Exclusive houses in Madeira became 21.7% more expensive

Looking at the 20 districts and islands in Portugal with representative samples, it stands out that in the vast majority of territories (18), there was an increase in the cost of houses in the 90th percentile of prices, i.e., the top 10% most expensive in the Portuguese market.

The island of Madeira experienced the most significant price growth for the most expensive properties, reaching 21.7%. Following in this ranking of rising costs for the most exclusive houses are Castelo Branco (19.2%), Beja (16.5%), Portalegre (14.8%), Guarda (13.1%), Viseu (12.7%), Faro (11.3%), Leiria (9%), Santarém (8.4%), and Coimbra (6.5%).

The smallest price increases for these exclusive houses were on the island of São Miguel (5.6%), Viana do Castelo (5.6%), Lisbon (5%), Setúbal (5%), Vila Real (3.3%), Porto (3.1%), Bragança (2.2%), and Aveiro (1%). In only two districts did the price of the most expensive properties decrease between April 2024 and the same period last year: Évora (-4.2%) and Braga (-4.3%).

Comparison with overall market price trends in Portugal

The most exclusive houses for sale had more significant price increases in 5 of the 20 districts analysed. The largest difference was recorded in Castelo Branco, where overall market prices rose by 9.9%, while the 90th percentile market grew by 19.2%. Following are Guarda (7.8% overall market and 13.1% 90th percentile), Beja (12.5% overall market and 16.5% 90th percentile), Faro (7.7% overall market and 11.3% 90th percentile), and Portalegre (12.5% overall market and 14.8% 90th percentile).

At the opposite extreme is Viseu, where the top 10% of houses saw a less expressive price increase than the overall market: the overall market rose by 16.7%, while properties in the 90th percentile grew by only 12.7%. Following are Viana do Castelo (9.6% overall market and 5.6% 90th percentile), Porto (6.5% overall market and 3.1% 90th percentile), São Miguel island (8% overall market and 5.6% 90th percentile), Santarém (10.7% overall market and 8.4% 90th percentile), Leiria (11% overall market and 9% 90th percentile), Setúbal (6.8% overall market and 5% 90th percentile), Vila Real (4.7% overall market and 3.3% 90th percentile), and Aveiro (2.4% overall market and 1% 90th percentile).

In the district of Braga, the overall market price remained stable (0.5%), while the value of the most exclusive properties decreased by 4.3%. The difference in price trends between the overall residential market and properties in the 90th percentile was almost negligible in Madeira island (21.7% in both), Lisbon (4.9% overall market and 5% 90th percentile), and Bragança (2.1% overall market and 2.2% 90th percentile).

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In which cities did Portugal's most expensive houses become even more expensive?

Funchal is the city where the most exclusive houses saw the highest increase, with prices rising by 18.8%. Following are Leiria (17.8%), Castelo Branco (13.8%), Viseu (13.8%), Vila Real (13.2%), and Portalegre (12.1%). In the city of Coimbra, the increase in this market segment was 9.2%, followed by Setúbal (7%), Guarda (6.6%), Bragança (5.8%), Santarém (5%), Viana do Castelo (5%), Faro (3.5%), Lisbon (3.2%), Porto (3.2%), Braga (1.8%), Beja (1.1%), Évora (0.8%), and Ponta Delgada (0.7%). In Aveiro, the most expensive houses maintained their price between April 2024 and the same month last year, the analysis reveals.

Looking at the overall residential market price trends, the most exclusive houses for sale had more significant price increases in 8 of the 20 cities analysed. The largest difference was recorded in Leiria, where overall market prices rose by 10.4%, while the 90th percentile market rose by 17.8%. Following are Vila Real (6.2% overall market and 13.2% 90th percentile), Castelo Branco (7.8% overall market and 13.8% 90th percentile), Guarda (0.6% overall market and 6.6% 90th percentile), Setúbal (3.5% overall market and 7% 90th percentile), Viseu (10.8% overall market and 13.8% 90th percentile), Coimbra (7.5% overall market and 9.2% 90th percentile), and Funchal (17.3% overall market and 18.8% 90th percentile).

In Viana do Castelo, the differences between the overall residential market and the high-end segment are significant, as house prices increased by 22.2% in the overall market and only 5% in the 90th percentile. Following are Faro (10% overall market and 3.5% 90th percentile), Braga (7.3% overall market and 1.8% 90th percentile), Lisbon (7.6% overall market and 3.2% 90th percentile), Évora (4% overall market and 0.8% 90th percentile), Porto (6.3% overall market and 3.2% 90th percentile), Santarém (7.6% overall market and 5% 90th percentile), Portalegre (14.5% overall market and 12.1% 90th percentile), Ponta Delgada (2.5% overall market and 0.7% 90th percentile), and Aveiro (0.8% overall market and 0.2% 90th percentile).

In Bragança, the price increase of houses remained equivalent, rising by 6% in the overall market and 5.8% in the 90th percentile.

• Property for sale in Portugal
• Long-term rentals in Portugal

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Methodology

For this analysis, the idealista team compared the price per square metre in April 2023 and 2024, using the same sample as in the idealista price report, focusing on the 90th percentile of each examined market.

The data was collected and analysed by idealista/data, idealista's proptech that provides information aimed at a professional audience to facilitate strategic decision-making in Portugal, Spain, and Italy. It utilises all parameters from the idealista database in each country, as well as other public and private data sources, to offer services in property valuation, investment, acquisition, and market analysis.