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Portugal Property Market Boom in 2025

Portugal’s real estate market is booming in 2025, attracting foreigners to buy homes in Porto, Lisbon, and Algarve. Vacation and investment properties are boosting local tourism and the economy. Easy access for foreign buyers and growing long-term rental demand make the market increasingly sustainable and promising.

What is the average price of property in Portugal?

A recent barometer from Imovirtual, covering data from November 2025, shows that the average asking price for properties in Portugal is around €440,000, marking a significant increase compared to 2024.

Holiday rentals see revenues continue to grow

According to data from LovelyStay, that manages properties in Lisbon, Porto, and Madeira, gross bookings between June and September reached over €23.1 million, an 8% increase year over year. Occupancy rates were above 85% in September and averaged 81% in October. For the final quarter of the year, the company expects to exceed €11 million in gross bookings.

The Most Affordable Places to Buy Property in Lisbon and Porto

In the 12 months ending June 2025, the median price of homes sold in Lisbon was €4,525/m² (up 7.7 %), while in Porto it was €3,060/m² (up 2.3 %). The most affordable parish in Lisbon was Santa Clara at €3,450/m², and in Porto the parish of Campanhã offered the lowest cost at €2,819/m².

Rental Prices Increase in Key Portuguese Cities

In October 2025, rental prices rose by 5.7% year-on-year in Portugal. Major cities saw higher levels, with Lisbon at €22.8/m², Porto at €18.3/m², and Faro at €15.8/m². Overall, rental demand continues to drive price growth across the country.

How Much Have Properties in Portugal Increased By?

According to the idealista price index, house-prices for sale in Portugal rose by 8.7% in October 2025 compared to October 2024, reaching a median of €2,970 per m². The report also highlights standout yearly increases in certain districts: Beja (+30.6%), Santarém (+27.8%) and Portalegre (+24.1%).