Portugal Home Prices Accelerate in Q3 2025

• 13 February, 26

In the third quarter of 2025, Portugal’s real estate market continued its strong growth momentum. According to the latest local-level housing price statistics released by Portugal’s National Statistics Institute (INE), home prices accelerated across multiple major cities nationwide, while transaction activity also increased.

National home prices rise 16.1% year over year as transaction volume grows

Data shows that 41,117 family homes were sold in Portugal during the third quarter of 2025. The national median transaction price reached €2,111 per square meter, representing a 16.1% year-over-year increase and a 2.2% quarterly rise. At the same time, housing transaction volume grew by 4.0% compared to the same period in 2024, indicating continued confidence from both buyers and sellers in market prospects.

Across the country’s 26 NUTS III subregions, all recorded year-over-year price increases. The northeastern region of Trás-os-Montes posted the highest growth, with prices rising by 34.3%.

Half of cities with over 100,000 residents see faster price growth

Among the 24 municipalities with populations exceeding 100,000, 12 recorded an acceleration in home price growth during the third quarter. Coimbra and Setúbal stood out in particular, with price growth accelerating by 14.8 percentage points and 11.4 percentage points respectively, making them the fastest-growing representative cities this quarter.

Portugal’s two core cities, Porto and Lisbon, maintained strong upward momentum. Their year-over-year price increases rose by 6.2 percentage points and 3.9 percentage points respectively compared with the previous quarter.

Greater Lisbon and Porto metropolitan areas continue to lead prices

Among all cities with populations above 100,000, most municipalities in Greater Lisbon, the Setúbal Peninsula, and the Porto metropolitan area recorded housing prices above the national average. The only exception was Santa Maria da Feira.

Lisbon remains the most expensive housing market in Portugal, with a median price of €5,000 per square meter. It is followed by Cascais (€4,713 per square meter) and Oeiras (€4,361 per square meter), all significantly higher than the national average.

Coimbra not only recorded prices above the national median (€2,296 per square meter) but also achieved a strong year-over-year increase of 32.4%. Funchal’s housing prices were likewise above the national average, though its growth rate was comparatively moderate.

Cities such as Braga, Leiria, Guimarães, and Vila Nova de Famalicão also posted year-over-year increases above the national average, suggesting that second-tier cities are emerging as new growth drivers. Barcelos was the only major city where both prices and growth rates fell below the national average.

Foreign buyers push up transaction prices in core areas

Statistics further show that in Greater Lisbon and the Porto metropolitan area, homes purchased by foreign tax residents were transacted at significantly higher prices than those bought by local residents. In Lisbon, the median price paid by foreign buyers was 61.7% higher than that of local buyers. In Porto, the difference stood at 39.8%. This trend further reinforces price support in core urban markets.

Housing transactions remain most active in metropolitan centers

Over the 12 months ending in September 2025, Lisbon ranked first nationwide with 8,784 family home transactions. Sintra, Vila Nova de Gaia, and Porto followed closely behind, each exceeding 4,500 transactions. This highlights that metropolitan areas continue to be the primary concentration of housing demand in Portugal.

Cre: The Portugal News