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Real Estate Market in Porto in 2025

Porto, the second-largest city in Portugal, continues to attract investors and homebuyers thanks to its rich cultural heritage, mild climate, and relatively affordable property prices compared to other European cities. In 2025, the real estate market here is showing significant trends that impact demand, supply, and property values.

Portugal's Retail Real Estate Investment More Than Doubles Since 2023

"The strong recovery of the Portuguese market was driven by the good performance of the economy, with positive effects on the activity of retailers, which, together with the price correction that the sector has seen in recent years, generated an attractive scenario of reduced risk and high profitability," revealed report, anticipating that this movement will continue in the Portuguese market in 2025.

23 apartments in Porto for the price of one in Tel Aviv

The numbers are amazing. Take for example buying an apartment "on paper" for a million shekels (approx. USD 272,000), getting up to 75% mortgage at an interest rate of less than 4%, start repaying the loan only when the apartment is handed over, and then rent it out at a 10% yield, or more.

Where have house prices in Portugal risen most?

House prices in Portugal rose 4.3% in January compared to the same month in 2024. Housing also became more expensive in the last year in Santarém (15.4%), Setúbal (14.5%), Leiria (12.3%), Ponta Delgada (10.6%), Bragança (10.2%), Viseu (8.6%), Funchal (8.6%), Coimbra (8%), Guarda (7.6%), Braga (7%), Faro (4.7%), Porto (3.2 %), Castelo Branco (3.1%), Portalegre (3.1%) and Viana do Castelo (1.5%).

“Steadiness and stability” in Portuguese property market

Further improvements in disposable incomes in tandem with the prospect of falling interest rates across the Eurozone should further facilitate activity within the real estate industry over the remainder of the year and particularly through 2025.

Foreigners invest €682 million in real estate

Real estate continues to attract investors to Portugal. In the first quarter of 2024 alone, foreign direct investment in real estate was 682 million euros, but this figure fell compared to the 853 million euros recorded in the final stretch of last year.