Portugal

House prices in Portugal rise by almost 19% in the first quarter

House prices in Portugal rise by almost 19% in the first quarter
PHOTO BY: JAKUB ŻERDZICKI, UNSPLASH.

In the first quarter of this year, the median price of the 40,163 family homes sold in Portugal stood at 1,951 euros per square metre, an increase of 18.7% on the same period last year, i.e. above the 15.5 percent variation recorded in the previous quarter, INE said on Wednesday.

The Portuguese property market thus continues on a solid growth path, despite the global economic context marked by uncertainty. Between January and March, the number of transactions increased by 24.9% compared to the first quarter of 2024.

Compared to the same period in 2024, the median house price increased in the 26 NUTS III sub-regions, with the Alto Alentejo standing out with the highest growth (51.6 per cent). The sub-regions with the highest median house prices - Greater Lisbon, the Algarve, the Autonomous Region of Madeira, the Setúbal Peninsula and the Oporto Metropolitan Area - also had the highest values in both categories of the buyer's tax residence (national and foreign territory).

In the Greater Lisbon and Oporto Metropolitan Area sub-regions, the median price of transactions made by buyers domiciled abroad exceeded the price of transactions made by buyers domiciled in Portugal by 52.5 per cent and 32.3 per cent respectively.

House prices accelerated in 16 of the 24 municipalities with more than 100,000 inhabitants

INE figures also show that in the first three months of the year, house prices accelerated in 16 of the 24 municipalities with more than 100,000 inhabitants, with the municipalities of Santa Maria da Feira (+15.8 p.p.) and Cascais (+14.8 p.p.) showing the biggest increases.

The biggest decrease in the year-on-year rate of change occurred in the municipality of Funchal (-30.2 p.p.). The municipalities of Lisbon and Porto recorded decreases of 1.1 p.p. and 2.0 p.p. in their year-on-year rates of change from the 4th quarter of 2024 to the 1st quarter of 2025. The municipalities of Lisbon, Cascais, Oeiras, Porto and Odivelas had the highest house prices.

Families push up the cost of housing

In the first three months of the year, the median price of dwellings purchased by households in Portugal in the 1st quarter of 2025 was 1,986 euros per square metre (19.1% more than in the same quarter of the previous year) and that of buyers from the other institutional sectors was 1,601 euros per square metre (6.7% more than in the same quarter of the previous year). The median value of family housing transacted in Portugal involving foreigners was 2,573 euros per square metre.

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