Portugal’s property market continues to surge, with recent bank appraisals revealing record-breaking values for homes across the country. According to the National Statistics Institute (INE), the median value of homes assessed by banks for mortgage purposes reached €1,965 per square metre in August 2025, marking a slight increase of €20 compared to July and setting a new all-time high.
This marks the 21st consecutive month of rising home valuations, continuing a growth trend that has been steady since late 2023. While the year-on-year growth has slowed marginally—rising 18.1% compared to 18.7% in July—the market’s upward trajectory remains strong.
However, the number of bank appraisals fell slightly, with around 31,700 properties evaluated, a 6.4% decrease from the previous month and virtually unchanged year-on-year.
Apartments leading the surge
Apartments have seen some of the most significant price increases. The median appraisal for apartments reached €2,269 per square metre, a 22.6% increase from August 2024. Regional differences are pronounced:
- Greater Lisbon tops the charts at €2,991/m²
- The Algarve follows with €2,681/m²
- Central Portugal remains more affordable at €1,472/m²
Breaking it down by size, one-bedroom apartments now average €2,914/m², two-bedroom units €2,344/m², and three-bedroom homes €1,957/m².
Regional insights
Certain regions stand out for exceeding national median values:
- Greater Lisbon: +50.5%
- Algarve: +33.7%
- Setúbal Peninsula: +19.6%
- Madeira: +16.3%
- Alentejo Coast: +5.2%
Meanwhile, some interior regions remain more affordable, with appraisal values well below the national median:
- Beiras & Serra da Estrela: -52.5%
- Alto Tâmega & Barroso: -50.4%
- Alto Alentejo: -50.4%
What this means for buyers
For international buyers, Portugal remains a highly attractive market. Prime coastal areas such as Lisbon, the Algarve, and Madeira continue to command premium prices, while interior regions offer more budget-friendly opportunities. With strong long-term growth and steady monthly increases, the Portuguese property market demonstrates resilience and appeal for those seeking a mix of lifestyle and investment potential.
Whether you’re looking for a luxury apartment overlooking the sea or a countryside home with potential for growth, understanding these trends is key to making informed investment decisions.