The housing market in Lisbon and Porto continues to become more expensive year after year. However, municipal data conceal a very mixed picture when it comes to house prices in each area, which are evolving in markedly different ways. The latest figures from the National Statistics Institute (INE) show that there has actually been a fall in house prices in seven parishes of the capital — particularly in Marvila — and in two areas of the Invicta (Campanhã and Foz).
Marvila records the biggest drop in prices in Lisbon
In the year ending June 2025, the average price of homes sold in the municipality of Lisbon was €4,525 per square metre (€/m²), representing an annual growth of 7.7%. But house prices did not rise in all parts of the capital.
“In seven of the 24 parishes of the municipality of Lisbon, the average sale price was lower than that recorded in the same quarter of the previous year, with the most significant decreases seen in the parishes of Marvila (-16.9%) and Areeiro (-12.7%),” reads the INE bulletin published at the end of October. Other price drops were observed in the parishes of Santo António, Santa Maria Maior, Arroios, Misericórdia and Belém.
The vast majority of Lisbon’s parishes (17 out of 24) continue to see rising house prices — and in some cases, at a rapid pace. Ten areas of the capital recorded double-digit growth over the past year, with the biggest increases in Beato (32.3%) and Campolide (23.4%).
It is precisely the appreciation of housing in the capital in recent years that explains why there are now seven parishes with prices above €5,000/m². The most expensive square metre of all remains in Santo António (€6,031), despite the annual price correction. Parque das Nações is the second most expensive parish to buy a home (€5,840/m²), and prices there continue to show no signs of slowing, having risen by 17.4%.
The most affordable area to buy a home in Lisbon is Santa Clara, where the average housing cost stands at €3,450/m², following a 5.6% increase over the past year.
In terms of homes sold, the INE reports that “the parish of Lumiar recorded the highest number of family housing transactions (857) and Carnide the lowest (128) in the 12 months ending June 2025.”
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Porto: Homes in Foz and Campanhã become cheaper
The housing situation in the municipality of Porto is quite different from that of the capital, presenting much lower overall values. The average price of homes sold in Porto was €3,060/m², an annual increase of 2.3% for the year ending June 2025.
A closer look at the Invicta reveals that house prices fell in two areas, as reported by the institute:
- Campanhã (-8.5%), a parish undergoing clear urban expansion, recorded the lowest housing cost per square metre (€2,819);
- Union of Parishes of Aldoar, Foz do Douro and Nevogilde (-3.6%), the city’s most prestigious area to buy a home, with an average of €3,836/m².
All the other five areas saw house prices rise at a faster pace than the municipality of Porto as a whole. The biggest increase in the price of homes sold was observed in the Union of Parishes of Lordelo do Ouro and Massarelos (10.5%).
“The number of family housing transactions in the parishes of the municipality of Porto ranged from 1,002 in Paranhos to 354 in the Union of Parishes of Aldoar, Foz do Douro and Nevogilde,” the bulletin adds.
The Portuguese towns where you can buy a house for under €35,000
Access to housing in Portugal is becoming increasingly difficult as house prices reach record growth levels while wages fail to keep pace. However, this reality does not affect the entire country. Inland areas hide municipalities where buying a house can cost less than €35,000.