Portugal’s housing market in 2026 is increasingly defined by one issue: access to affordable property. The latest figures from idealista/data show that only 1 in 3 homes for sale cost up to €300,000, which is exactly the price bracket where demand is strongest.
Stock is tightening sharply at the lower end, competition is rising, and mid-range homes are becoming the new battleground.
Portugal property market overview (Q1 2026)
There has been a broad contraction in supply across the country.
- Residential listings fell 19% year-on-year
- Just over 100,000 apartments were advertised on idealista in Q1 2026
- Only 36% of total stock is priced at or below €300,000 (down from 42% a year earlier)
- The largest share of supply now sits between €300,000 and €600,000 (44%)
- Around 20% of listings are priced above €600,000
The reduction in the supply of accessible housing is contributing to record-high house prices nationally, while construction costs continue to make it difficult to build new homes at lower price points.
Where supply has fallen the most
The sharpest supply drops are concentrated in the price ranges typically considered affordable.
- Total stock priced up to €210,000 fell to less than half of what was available a year earlier.
- By contrast, supply above €600,000 fell just 8%.
Biggest annual supply declines (Q1 2026 vs Q1 2025)
Price range | Annual change |
|---|---|
€120,000–€150,000 | −236% |
€150,000–€180,000 | −228% |
€90,000–€120,000 | −180% |
€180,000–€210,000 | −119% |
Up to €300,000 (overall) | −31% |
Demand trends: strongest below €300,000
Demand pressure remains highest for homes priced up to €300,000.
Apartments between €90,000 and €150,000 recorded the highest average number of contacts per listing in Q1 2026, with around 11 contacts per advert, the highest of all price brackets
Across all 20 district capitals analysed, demand is strongest in properties under €300,000. However, interest is rising sharply in the mid-range.
Fastest-growing demand segments
Price range | Annual increase in demand |
|---|---|
€420,000–€480,000 | +48% |
€360,000–€420,000 | +42% |
€300,000–€360,000 | +35% |
€480,000–€600,000 | +35% |
This suggests that buyers are moving into higher price brackets as lower-cost stock becomes harder to find. In Lisbon, there is also clear attraction towards properties above €600,000.
How fast are homes selling in Portugal?
Homes under €300,000 are leaving the market fastest.
Properties priced between €210,000 and €270,000 are among the quickest to sell, remaining online for around 63–64 days.
In Lisbon and Porto, homes priced below €300,000 stayed on the market just over two months at the start of 2026.
Overall, homes under €600,000 generally spent less time on the market in Q1 2026 than in the same period a year earlier.
Average time on market (Q1 2026)
Price bracket | Average days online |
|---|---|
Up to €300,000 | 80 days |
€300,000–€600,000 | 82 days |
Above €600,000 | 119 days |
Lisbon, Porto and regional differences
National averages hide significant local contrasts.
- In Lisbon, nearly 49% of listings are priced above €600,000.
- In Porto, the dominant segment is €300,000–€600,000, accounting for 45% of the total stock, while 25% is above €600,000.
Meanwhile, more affordable stock remains concentrated in interior cities such as Bragança, Beja, and Guarda, where homes under €300,000 account for the vast majority of listings.
Share of homes under €300,000 in selected cities
City | % of stock under €300k |
|---|---|
Bragança | 98% |
Beja | 86% |
Guarda | 82% |
Coimbra | 41% |
Porto | 30% |
Faro | 14% |
Lisbon | 7% |
Funchal | 3% |
Government measures affecting the market
Several fiscal measures are in place or due to take effect:
- IMT (property transfer tax) and Stamp Duty exemption for buyers up to age 35. (These are two of the main measures in the Government's fiscal package, published in the Official Gazette on May 20th.)
- Partial IMT exemption for homes priced between €330,000 and €660,000
- 6% VAT on construction scheduled to enter into force in July
- Simplification of urban planning licensing rules (revision of the RJUE)
However, sector specialists estimate that these measures may take time to produce tangible effects for families, particularly in terms of increasing available supply.
What this means for foreign buyers in 2026
If you are looking at property in Portugal this year, the data suggests a more polarised market.
- Budgets under €300,000 face the sharpest stock contraction and the fastest sales cycles.
- The €300,000–€600,000 bracket now represents the largest share of available homes and is seeing strong growth in demand.
- Supply above €600,000 is comparatively more stable, with longer selling times.
The key issue is no longer just price levels. It is the shrinking availability of affordable options, particularly in major cities.
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