House prices

The Portuguese Government has set up a task force to focus on affordable housing, aiming to “define guiding principles for investments supported under Portugal 2030” in this sector, according to a decree published in the Diário da República.Dated 3 March, the decree explains that the group will also

House prices in Portugal are expected to rise another 15% in 2026, following an already record-breaking 18% surge in 2025, according to global ratings agency Fitch.

Portugal is now the second EU country with the largest increase in housing prices since 2020, with a 24.1% rise, only behind Greece (29%). At the same time, the country remains among the EU member states with low purchasing power, according to the latest Pordata data.

Portugal has become a hotspot for the global middle class, driving property prices beyond what local wages can support, according to economist José Manuel Félix Ribeiro.

While Portugal faces a housing crisis and rising property prices, local differences are striking.

House prices in Portugal rose 17.7% year-on-year in the third quarter of 2025, marking the second-largest increase in the European Union, according to Eurostat. This surge is well above both the Eurozone average of 5.1% and the EU average of 5.5%, highlighting the continued strength of the Portuguese property market.

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.

Access to housing is becoming increasingly difficult across Europe, with house prices rising far faster than household incomes in recent years. Portugal, in particular, stands out for all the wrong reasons: it is one of the EU Member States where housing costs have more than tripled over the last decade.

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.

Portugal’s housing market is showing no signs of cooling.

Year-on-year house prices increased by 5.4% in the euro area, 5.7% in the EU, and... 16.3% in Portugal, according to Eurostat.

Portugal’s Prime Minister has announced a fresh housing strategy aimed at bringing together all key players in the property sector to help resolve the country’s housing crisis and curb price increases.The new government led by Luís Montenegro is prioritising one clear goal: “Ensuring quality housing

There is a significant disparity in Portugal regarding house prices for purchase. In the major urban centres of Lisbon, Porto, and Faro, housing costs are quite high and often out of reach for middle-class families.

People have been buying homes in Portugal at increasingly higher prices, with the average cost reaching 221,272 euros in the summer of 2024.

The global economic context continues to present challenges and uncertainties. However, the luxury real estate market remains resilient.

The Lisbon region has increasingly attracted families to live, visit, and invest. This high demand has been reflected in house prices, as the housing supply has not kept pace with this growth.

The Algarve is the most accessible prime market in Europe for millionaires, closely followed by Bordeaux and Tuscany.

Concerns about house prices (whether for renting or buying) are reaching record levels in the wealthiest countries, surpassing other issues such as health or education.

The growth in luxury home prices worldwide is losing momentum due to high interest rates still impacting many markets, such as those in the US and Europe. However, some cities are experiencing a counter-cyclical trend, with Lisbon among them.

The purchase of homes in Portugal by foreigners fell in early 2024, coinciding with the end of the Non-Habitual Residents (NHR) regime on previous terms and the golden visa programme for real estate investment.