News

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.

Home Prices Reach Record Highs

In the second quarter of 2025, home prices in Portugal experienced their highest growth ever, increasing by 17.2% year-over-year. This surge is attributed to supportive measures for young homebuyers, such as public guarantees on housing loans and exemptions from the IMT (real estate transfer tax), alongside the European Central Bank's easing of interest rates, which have facilitated access to bank credit.

Price Explosion for Trump “Refugees”

Portugal's real estate market is experiencing significant growth, driven by an influx of American expatriates seeking a more stable environment. From January to July 2025, over 1.3 million Americans visited Portugal, surpassing traditional European visitors. The number of U.S. citizens residing in Portugal has more than doubled since 2017, reaching nearly 21,000. This trend is contributing to a vibrant housing market, with retirees and professionals finding Portugal an attractive destination for relocation.

Historic Rise in Property Prices

Property prices in Portugal rose by 18.7% last year, reaching an all-time high. The number of homes sold between January and March 2025 increased by 24.9% compared to the same period in 2024, with over 40,000 properties sold. Lower mortgage interest rates, new support measures for young buyers, and strong rental demand are driving growth in the housing market. Average prices have now reached a record €1,951 per square metre.