We’ve seen a remarkable surge in property prices across the country, reaching new record highs. According to the latest data from the National Statistics Institute (INE), the prices of homes sold in Portugal rose by a staggering 18.7% last year, the highest increase on record.
This price boom is not simply a result of increased residential sales, as the data shows. In the first three months of this year alone, we saw a 24.9% jump in the number of homes sold compared to the same period in 2024. Lower mortgage interest rates and new government support for young homebuyers, such as exemptions from IMT taxes and public guarantees, have undoubtedly fueled this heightened demand.
However, the rise in home purchases is outpacing the growth in residential supply, whether through new construction, renovations, or alternative building methods like modular construction or converting commercial spaces into living units. This mismatch between supply and demand is a key driver behind the record-breaking price appreciation, with the average price per square meter reaching €1,951 last year – a new high.
It’s important to note that this rapid price increase is not isolated to a specific region or market segment. The data reflects a nationwide trend, with prices rising 4.3% even from the previous quarter. This suggests that the factors driving this real estate boom are widespread and systemic, affecting housing markets across the country.
As we look into the underlying factors and implications of this historic price surge, it’s clear that policymakers and industry stakeholders will need to closely monitor the situation.
Your vision of living or investing in Portugal is closer than you think. Our comprehensive service ensures a seamless property purchase and home setup, tailored precisely to your requirements. Benefit from our in-depth market knowledge and personalized approach. Ready to explore the possibilities? Schedule a meeting with us and let’s make it happen!