Portugal’s housing market continues to experience significant growth, with property prices climbing across most major cities. Understanding these trends is crucial for anyone considering buying a home in Portugal.
As of June 2025, buying a house in Portugal costs an average of 2,898 euros per square meter. This represents a substantial 8% increase compared to the same period last year, with quarterly growth reaching 4.4%.
These figures come from the idealista price index, which tracks real estate trends across the country’s major markets.
Portuguese Housing Market Trends
The Portuguese housing market shows dramatic regional variations, with some cities experiencing explosive growth while others remain stable or even decline.
- Setúbal: 20% increase
- Santarém: 15.3% growth
- Évora: 13.9% price rises
- Ponta Delgada: 13.6% growth
- Faro: 10.3% increase
- Viana do Castelo: 10.1% growth
- Coimbra: 9.5% rise
- Funchal: 7.6% increase
- Braga: 6.5% growth
- Porto: 6% increase
- Portalegre: 4.8% growth
- Vila Real: 4% growth
- Leiria: 4% growth
- Lisbon: 2.3% growth
- Bragança: 1.6% growth
- Aveiro: 0.5% growth
► Cities with Price Declines:
- Viseu: -1.9% decline
- Castelo Branco: -3.1% decline
What These Growth Patterns Mean for Buyers
The Portuguese property market reveals several important trends that buyers should understand before making investment decisions.
Emerging Markets Outperform Established Ones The fastest-growing markets are not the most expensive cities. Setúbal’s 20% growth rate demonstrates how proximity to major cities like Lisbon creates spillover demand, offering better value for money while still providing access to urban amenities.
Regional Diversification is Key With 15 out of 18 cities showing price increases, the growth is widespread but not universal. This suggests that local factors still matter significantly, from employment opportunities to infrastructure development.
Tourism Impact on Coastal Cities Coastal areas like Faro (Algarve) and Funchal (Madeira) continue showing strong growth, driven by both international buyers and tourism-related investment. However, their growth rates are more moderate than emerging inland markets.
The Interior Opportunity While cities like Castelo Branco and Viseu show price declines, this could represent opportunities for buyers seeking value in less crowded markets, particularly as remote work becomes more common.
How Residential Advisory Portugal Can Help?
While understanding Portugal’s property price trends is essential, successfully capitalizing on these opportunities requires local expertise. At Residential Advisory Portugal, we specialize in helping international buyers navigate the complexities of Portugal’s diverse property markets.
Our team handles everything from market analysis and property selection to negotiations and legal documentation, ensuring you make informed decisions in this dynamic 8% growth market while avoiding costly mistakes.
Contact us today to discover how our expertise can help you secure your ideal Portuguese estate.