House prices in Portugal hit historic milestone

• 4 May, 26

The real estate market in Portugal reached a historic milestone at the end of 2025, with house prices registering unprecedented growth.

According to the housing price index, the fourth quarter of 2025 saw a year-on-year increase of 18.9%, bringing the average annual growth to 17.6%.

This value constitutes an absolute record in the series of the National Institute of Statistics (INE), in a year in which the sector’s dynamism was also evident in the volume of business, with sales transactions approaching 170,000 units.

Despite this record appreciation, bank valuation data through February 2026 show the residential market is on a strong trajectory at the start of the new year. However, analysts warn of moderating factors that could halt this price surge in the coming months.

The persistence of the conflict in the Middle East, with its direct effects on household confidence and the reduction of disposable income due to inflationary pressures, emerges as the main element capable of cooling demand and stabilising the national real estate market.

Whether this rise in the CPI persists in the coming months will now depend solely on the evolution of geopolitical developments and the duration of the conflict, which remains the main factor of uncertainty for price stability in Portugal and the Eurozone.

Cre: The Portugal News