Portugal’s housing market gathered pace in mid‑2025, with prices and transactions rising across the country. The spotlight is on Lisbon and Porto, where international demand is reshaping budgets and shifting which parishes are hottest and which still look like value.
National snapshot: prices up 19%, sales up 15.6%
Portugal’s housing market accelerated sharply in the second quarter of 2025. According to the National Institute of Statistics (INE), the national median price reached €2,065 per m2 across 41,608 family dwellings. This is up 19% year-on-year, compared with an 18.7% rise in the previous quarter. Sales activity also strengthened, with transactions rising 15.6% versus Q2 2024.
Lisbon vs Porto: how far does your budget go in Q2 2025?
The price differential between Portugal’s two largest cities remained pronounced. Lisbon recorded a median of €4,865 per m2, while Porto stood at €3,309 per m2 in the second quarter of 2025.
Crucially for international buyers, foreign tax-resident purchasers paid significantly more than domestic buyers in both metropolitan areas. In Grande Lisboa, the median price of transactions by buyers with foreign tax residence was 61.9% higher than for buyers resident in Portugal.
In the Área Metropolitana do Porto, the gap was 29%. These premiums underline how international demand is shaping budgets and expectations in the country’s most competitive urban markets.
Lisbon’s priciest parishes and where momentum is shifting
According to the INE press release from 22nd October, the 12 months to June 2025, five Lisbon parishes stood above €5,300 per m2: Santo António (€6,031), Parque das Nações (€5,840), Campo de Ourique (€5,528), Estrela (€5,487), and Misericórdia (€5,340).
The fastest annual rise in Lisbon was in Beato, up 32.3%. Seven parishes saw prices fall year-on-year, led by Marvila (-16.9%) and Areeiro (-12.7%).
By October 2025, Lisbon’s average property prices reached a new peak of €5,886 per m2. At the top end, Santo António remained the most expensive at €7,289 per m2. Avenidas Novas (€6,916 per m2) and Misericórdia (€6,788) posted modest annual gains of 1.7% and 4.3%, respectively.
Porto’s premium pockets and value districts
Over the 12 months to June 2025, the INE report states that Porto averaged €3,060 per m2. The city’s priciest spot was Aldoar, Foz do Douro e Nevogilde at €3,836 per m2, though prices there slipped 3.6% over the year.
The strongest growth came in Lordelo do Ouro e Massarelos, up 10.5% to €3,333 per m2. Campanhã was the cheapest at €2,819 per m2 and the only parish to fall on both price and annual trend.
Porto property prices reached €3,844 per m2 in October 2025, up 4.3% year-on-year, setting a new high for the city. At the top end, Aldoar–Foz do Douro–Nevogilde is the most expensive neighbourhood in Porto at €4,716 per m2. It also posted the strongest momentum, rising 12.5% from the year before.
For areas combining relative value with growth, Paranhos reached €3,709 per m2 after an 8.1% annual increase, and Ramalde rose to €3,230 per m2. Campanhã remains the cheapest parish in Porto at €3,091 per m2, and it is the only one still falling at pace year-on-year, down 7%.
Beyond the big two: inland acceleration
While metropolitan Lisbon and Porto set the upper pricing tiers, inland markets also gathered pace. Baixo Alentejo led annual growth among sub-regions in Q2 2025 with a 38.7% rise.
Across the 12 months to June 2025, the national median was €1,923 per m2, up 15.8% on the year ending June 2024. The sub-regions of Grande Lisboa (€3,165), Algarve (€2,922), Madeira (€2,560), Setúbal (€2,305), and Porto Metropolitan Area (€2,129) all remained above the national figure.
Over the same 12-month window, Lisboa recorded the country’s highest number of sales (8,949), with Sintra (6,373), Vila Nova de Gaia (5,954) and Porto (4,685) also among the most active.
What matters to foreign buyers in late 2025
The scale of the foreign-buyer premium in Lisbon and Porto suggests that international demand is helping to set the clearing price in key neighbourhoods. In the Lisbon area, foreign transactions were priced nearly two-thirds higher than domestic deals.
In Porto’s metro, the gap between foreign and local purchases was close to one-third. The coastal-west areas remained the costliest but were not uniformly rising, whereas central-west and inner-city parishes showed a mix of competitive pricing and positive momentum.
Getting familiar with the ins and outs of buying property in Portugal in 2025 is a good idea before diving into the competitive and ever-growing market.
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