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House prices across Europe: Which countries have the highest increases?

Portugal experienced the highest annual increase in house prices among EU countries, with a 17.1% rise in the second quarter of 2025 compared to the same period in 2024. Other countries with notable increases include Bulgaria (15.5%), Hungary (15.1%), Croatia (13.2%), Spain (12.8%), Slovakia (11.3%), and Czechia (10.5%). These figures reflect a strong demand and investor confidence in the European real estate market.

Portugal Property Prices Double

Portugal's housing market has experienced a remarkable surge, with property prices more than doubling (141%) between 2010 and 2025. In the second quarter of 2025, house prices increased by 17.2% year-on-year, the highest among EU member states. This growth is attributed to factors such as strong demand from international buyers, limited housing supply, and favorable economic conditions. Despite this rapid appreciation, the market remains attractive for investment, offering opportunities in emerging regions and sectors.

Portugal’s Real Estate Market throughout the year.

Portugal's commercial real estate market experienced a significant rebound in the first half of 2025, with investment volumes reaching €1.26 billion—a 70% increase compared to the same period in 2024. This surge indicates a strong recovery and investor confidence across sectors such as office, retail, and industrial properties.

Property rental prices rise by 4%

In the year ending in September 2025, rental prices in Portugal increased by 4.1%, marking an acceleration from the previous month's 3.3% growth. The median cost of renting a home reached €16.9 per square meter. Cities such as Viana do Castelo, Bragança, and Viseu saw the most significant annual increases, with rates rising by 23.8%, 19.8%, and 16.5%, respectively. Lisbon remained the most expensive city to rent a home, with an average cost of €22.5 per square meter. In contrast, Bragança, Castelo Branco, and Viseu were among the most affordable cities for renting, with costs of €7.1, €7.3, and €7.9 per square meter, respectively.

Record-breaking property prices

Portugal's real estate market continues to thrive, with bank appraisals reaching a new all-time high of €1,965 per square meter in August 2025, marking the 21st consecutive month of increases. This upward trend reflects sustained demand and investor confidence across the country. Notably, Greater Lisbon leads with appraisals at €2,991/m², while the Algarve follows at €2,681/m². These figures underscore Portugal's robust property market, attracting both domestic and international interest.

Property below €700 per m²: Portugal’s cheapest places to buy in 2025

ortugal offers affordable real estate options, with 19 municipalities boasting average property prices under €700 per m². Sabugal (Guarda) leads at €495/m², followed by Pampilhosa da Serra (Coimbra) at €512/m² and Góis (Coimbra) at €513/m². These areas provide excellent value for buyers seeking budget-friendly properties in tranquil, rural settings.