Portugal House Prices: Records and Trends

Portugal, a sunny country with a rich history and stunning landscapes, continues to attract the attention of both local and foreign real estate investors. Amidst the overall rise in housing prices across Europe, the Portuguese market is performing particularly impressively. According to the National Statistics Institute (INE), in August 2025, the average price of housing assessed by banks for mortgage purposes reached a record €1,965 per square meter. This is €20 more than in July, indicating continued price growth, which has now been observed for 21 consecutive months.

Price Dynamics

Since the end of 2023, housing prices in Portugal have been steadily rising, driven by both domestic demand and interest from foreign buyers. Apartments, in particular, have been particularly susceptible to price increases, increasing by 22.6% year-over-year from August 2024 to August 2025. The average price per square meter for apartments reached €2,269, underscoring the high appeal of this market segment.

Regional Differences

Despite the overall upward trend, housing prices in Portugal vary by region. Greater Lisbon, the country's capital and economic hub, leads in housing prices with €2,991 per square meter. This region attracts not only local residents but also foreign investors seeking real estate investment opportunities.

The next most expensive region is the Algarve, known for its beaches and tourist resorts. Here, the average price per square meter is €2,681. The Algarve continues to be a popular destination for those seeking a sunny climate and a high quality of life.

Central Portugal, unlike the aforementioned regions, remains more affordable. The average housing price here is €1,472 per square meter, making it attractive to those seeking more affordable options.

Reasons for Price Rise

The rise in housing prices in Portugal can be attributed to several factors. First, the country continues to attract foreign investors thanks to its stable economy, favorable climate, and high standard of living. Second, limited supply in the real estate market, coupled with growing demand, is driving up prices.

Conclusion

Thus, the Portuguese real estate market is on the rise, with prices continuing to set new records. Investors considering purchasing a home in this country should consider both the benefits and risks associated with rising prices. Regional differences in housing costs also play a significant role in purchasing decisions. Portugal remains an attractive destination for real estate investment, and this trend is likely to continue in the coming years.