Property prices in Portugal have been rising so rapidly over the last few years that it can be hard to keep track of the latest figures.
But for anybody considering buying property in Portugal, it’s essential to be well-informed about the latest average house prices, the most and least expensive areas, and the growth trends of the market heading into 2026.
Portugal Homes collects the most important information on house prices in Portugal in 2026 so that you can have a clear view of the market without having to sift through the data yourself.
Statistics Portugal (Instituto Nacional de Estatística, INE), the government office for national statistics in Portugal, presented its latest local-level house price statistics (based on transaction data) on 2 February 2026, with results updated to the 3rd quarter of 2025.
We’ve examined the latest statistics and crunched the numbers to bring you this guide on what the newest data reveals about house prices in Portugal as we move through 2026.
Average Portugal House Prices: Key Takeaways
Here are the most important takeaways according to INE’s local-level house price statistics, based on actual transaction data:
- The median house price per square metre rose to €2,111/m² in Q3 2025;
- This represents a year-on-year increase of 16.1% compared to Q3 2024;
- Transaction volumes increased 4.0% year-on-year, with 41,117 sales in Q3 2025;
- The most expensive regions remain Greater Lisbon and the Algarve;
- The most expensive municipalities by price per square metre are Lisbon (€5,000/m²), Cascais (€4,713/m²), and Oeiras (€4,361/m²).
How Much Does Property Cost in Portugal in 2026?
The national median property price across Portugal was €2,111/m² in Q3 2025, according to INE’s most recent local-level data available as of February 2026.
After several years of post-pandemic acceleration, Portugal continues to register strong annual house price growth, although the year-on-year rate eased from 19.0% in Q2 2025 to 16.1% in Q3 2025.
Top 5 Most Expensive Regions
Property in these sought-after areas of the country fetch prices well-above the national average: The average housing prices for all the above-mentioned regions increased from Q2 2025.
- Greater Lisbon: €3,567/m² (from €3,403/m²);
- The Algarve: €3,203/m² (from €3,123/m²);
- Setúbal Peninsula: €2,710/m² (from €2,511/m²);
- Madeira Islands: €2,512/m² (from €2,381/m²);
- Porto Metropolitan Area: €2,350/m² (from €2,278/m²);
- Alentejo Litoral: €2,128/m² (also above the national level).
Several different factors are responsible for these record prices:
- Lisbon and Porto command high values due to employment concentration, international business activity, and consistent demand from both domestic and overseas buyers. These areas also show some of the strongest rental dynamics, which is a key driver for buyers purchasing a property for rental.
- Setúbal continues to attract those who want proximity to Lisbon without paying Lisbon’s top-ticket prices.
- The Algarve and Madeira remain underpinned by lifestyle demand and established international buying patterns.
- As ever, supply is the awkward constraint. Limited land availability, planning bottlenecks, and slow delivery of new stock keep pressure on prices in the best-connected locations.
- The region with the lowest median price in Portugal in the latest quarter is Beiras e Serra da Estrela, at €594/m² in Q3 2025. This region, located in the east of the country, along the border with Spain, is mountainous and sparsely populated. Limited essential infrastructure and transport links make this area less attractive, especially for foreign buyers
Where Are House Prices Rising the Most in Portugal?
The Regions with the Fastest Growth
In Q3 2025, all 26 NUTS 3 sub-regions recorded year-on-year price growth. The standout for growth was:
- Terras de Trás-os-Montes: +34.3% (highest year-on-year growth rate);
At the top end, several of the country’s most expensive regions also posted growth above the national average, including:
- Setúbal Peninsula: €2,710/m² (+25.5%);
- Greater Lisbon: €3,567/m² (+17.6%);
- Alentejo Litoral: €2,128/m² (+16.8%);
- The Algarve: €3,203/m² (+16.6%).
This is a useful reminder that Portugal’s market isn’t moving as one — price growth is widespread, but the level of prices still concentrates heavily in the metropolitan and coastal belts.
Portuguese Metropolitan Acceleration
In Q3 2025, house prices accelerated in 12 of the 24 municipalities with more than 100,000 inhabitants, with the sharpest increases in the pace of annual growth occurring in:
- Coimbra (+14.8 percentage points);
- Setúbal (+11.4 percentage points).
Among the larger municipalities, several locations recorded both strong values and stronger-than-average growth. Notably:
- Coimbra: €2,296/m² (+32.4%)
- Braga: €2,090/m² (+22.7%)
- Leiria: €1,819/m² (+22.5%)
- Vila Nova de Famalicão: €1,742/m² (+25.8%)
- Guimarães: €1,652/m² (+19.2%)
However, the very top of the housing pricing table in Q3 2025, the leaders remain the same:
- Lisbon: €5,000/m²
- Cascais: €4,713/m²
- Oeiras: €4,361/m²
Why “Secondary” Regions are Outperforming
Q3 2025's statistics found that the highest growth rates not in the major urban centres that usually dominate discussions of property price increases in Portugal but instead in more rural, “secondary” regions outside of major cities.
- This may suggest that homebuyers and investors, wary of the unprecedented prices in urban areas, are looking further afield, especially towards the North and the Douro region, known for its wine production.
- The top regions all feature regional urban centres and good transport links to Lisbon or Porto, as well as the lifestyle advantages that come with living outside of the city.
- These factors make them appealing choices for both domestic and foreign buyers even before considering the fact that average prices in these regions are often less than a third of those in the main cities.
- These regions are also well-suited to remote workers, who do not need to be based in dense urban centres and can benefit from the lower cost of living in these areas.
Market Trends in Portugal’s Property Prices
Since the same quarter last year, house prices in Portugal have continued to rise sharply:
- 16.1% year-on-year growth in Q3 2025 (down from 19.0% in Q2 2025);
- 41,117 transactions in Q3 2025, up 4.0% year-on-year;
- 167,003 transactions in the 12 months ending September 2025;
- Median price of €1,991/m² over the last 12 months, an increase of 16.5% compared to the 12 months ending September 2024.
These trends are linked to familiar drivers:
- Supply constraints in the most desirable and best-connected areas;
- Construction lag, with new delivery failing to keep pace with demand;
- A large stock of empty and vacant houses that remains difficult to bring back into circulation at scale.
Foreign Buyers vs National Buyers
The report again highlights a marked disparity between prices paid by purchasers with tax residence abroad and those domiciled in Portugal. In Q3 2025:
- Foreign buyers paid a median price of €2,889/m²;
- National buyers paid €2,083/m²;
- That is a premium of €806/m², or roughly 38.7% above the national-buyer median.
In the most internationally exposed markets, the gap is even more pronounced:
- In Greater Lisbon, foreign-buyer prices exceeded national-buyer prices by 61.7%;
- In the Porto Metropolitan Area, the premium was 39.8%.
However, this doesn’t necessarily mean that foreign buyers are simply being charged more. Instead, it has more to do with what, where, and how they choose to buy:
- Location preference: Foreign buyers are more likely to purchase property in one of the most expensive regions or municipalities in Portugal, as these are generally regarded as more promising investments as well as being better served for international travel connections.
- New-build bias: Foreign buyers are more likely to purchase newly built properties than existing ones, which also means they are likely to pay more.
- Purchasing power differences: Foreign buyers often have greater purchasing power than domestic buyers, meaning they are able to purchase more expensive property.
New and Renovated vs Existing Homes
Over the 12 months ending September 2025, INE reports that 23 of 24 large municipalities recorded higher prices for new dwellings than for existing dwellings. The exception was Amadora, where existing homes were €88/m² more expensive than new.
Among large municipalities:
- The lowest median price for new dwellings was in Barcelos: €1,567/m²;
- The highest new-build medians were in Lisbon: €5,467/m² and Cascais: €5,077/m².
The largest gap between new and existing dwellings among large municipalities was in Funchal, where new homes traded at €4,015/m² versus €2,983/m² for existing, a difference of €1,032/m².
Why does this gap exist? There are several reasons:
- Energy Efficiency: Recently built houses usually have better energy efficiency than older homes due to improved insulation, double glazing, air conditioning, and integrated solar panels.
- Condition: Buying an existing house means also buying any deterioration or structural issues it might have. A new build will not only be freshly finished but also likely have professional guarantees about its condition. Many buyers are willing to pay more for this peace of mind.
- Modern Design: Most new-build houses feature much more modern aesthetics than older houses. For many buyers, this can be a key criterion. Nobody wants to live in a house they don’t like the look of.
- Personal Choice: If a buyer purchases a new house while it is still under construction, they may be able to make certain choices about the design and finish of the house, an advantage for which many people are willing to pay a premium.
House Prices in Portugal 2026: What the Data Suggests
While it’s impossible to say with certainty what trends home prices in Portugal will follow over the course of 2026, here’s what the data suggests we might be able to expect:
- Increasing Momentum: Momentum indicators such as transaction volume and growth rate are rapidly increasing, and this year’s figures don’t suggest any slowing down of this trend, despite Q3 2025's annual rate being lower then Q2's.
- Foreign buyer premium data: Continued discrepancies between the median prices paid by foreign buyers and national buyers are likely to continue based on the data for this year and previous years.
- New vs. existing home pricing: The gap in price between new and existing homes seems likely to remain as well, although increased levels of construction or new initiatives to valorise vacant homes could change this before this end of the year.
How to Buy an Apartment or House in Portugal in 2026
There are many reasons to be interested in purchasing property in Portugal, but the continued strength and promising growth of the housing market is one of the most critical motivators.
Here is a brief overview of the steps involved in buying a property in Portugal:
- Obtain a NIF Number: Essential for all fiscal activities, this can be acquired through a local tax office or fiscal representative.
- Open a Portuguese Bank Account: Facilitates transactions and ongoing expenses like utilities and taxes.
- Hire Legal Representation: A lawyer ensures due diligence, reviews contracts, and verifies the property's legal status.
- Property Search: Collaborate with your real estate agent to find properties that meet your needs.
- Make an Offer: Once you find a suitable property, submit a formal offer through your agent.
- Promissory Contract (CPCV): A preliminary agreement outlining the terms of the sale, typically accompanied by a deposit.
- Final Deed (Escritura Pública): The official transfer of ownership, signed before a notary.
- Registration: Register the property in your name at the Land Registry and Tax Office.
An important thing to understand about buying property in Portugal is the extensive legal process and paperwork that comes with it.
While it is possible to undertake on your own, having legal representation makes the process easy, hands-off, and wrinkle-free, as well as potentially reducing costs that might be incurred by the complicated and often confusing bureaucratic process.
They say the best time to plant a tree is yesterday and the next best time is today. The same might well be said about investment in Portuguese real estate.
A property in Portugal bought in 2024 would already be offering an average increase in value of 19% just a year later.
If you’re interested in making an investment in Portuguese real estate, Portugal Homes can help you through every step of the process. Get in touch to find out how you can access one of the world’s fastest-growing property markets.
