Residential Sales in Portugal Climb 19% in First Half of 2025, Savills Data Shows
The Portuguese real estate market showed a robust performance in the first half of 2025, with the residential, tourism, and retail sectors driving positive growth, according to the “Real Estate Market Overview” study released by the consultancy firm Savills. The report indicates renewed confidence in the sector, with different segments advancing at varied speeds. By the end of June, residential property transactions totaled 40,452 units across Portugal, a figure that represents a 19% increase when compared to the same period in the previous year.
The data highlights that Lisbon has solidified its position as the country's principal market, with 5,415 sales recorded, an increase of 21% over 2024. The city of Porto also saw significant activity, with 3,721 homes sold, marking a 20% rise from the prior year and achieving its “best semi-annual performance since the pandemic.” Despite the significant growth in demand, Savills' analysis points to “signs of stabilization” in prices for both Lisbon and Porto, a trend that extends to the luxury segment. This suggests a slowdown from the rapid appreciation rates observed in recent years.
In the rental sector, the report notes a “significant increase” in the available housing supply. In Lisbon, the number of available homes for rent reached 5,355, up 32% from 2024. Porto experienced an even more dramatic expansion, with the rental supply growing by 116% to 1,646 available units. “This expansion of supply was accompanied by strong demand and by a greater number of contracts celebrated, sustaining a more moderate, but still positive, price trajectory,” the Savills report emphasizes.
The tourism sector's hotel segment was again identified as a primary engine of the market. The volume of real estate investment in hospitality reached 330.7 million euros in the first semester, a 16% year-over-year increase, which represents a 27% share of the total investment volume. Savills documented six major transactions during this period, with the sale of the Hotel Miragem in Cascais for approximately 125 million euros being the largest single operation. The national hotel infrastructure also continued its expansion, with 21 new hotels opening, which added about two thousand rooms to the existing supply.
The retail property sector also delivered “a solid performance” in the first half of 2025. Cumulative sales in shopping centers grew by 4.7%, and foot traffic saw a modest increase of 0.6%, which signals a “progressive recovery of consumer confidence.” In high-street retail, particularly in the prime zones of Lisbon and Porto, the supply of new, high-quality spaces remains constrained while demand continues to be high, especially from the fashion and food retail industries. The luxury segment has maintained its dynamism, with several international brands seeking to enter or reinforce their position in Portugal. However, the scarcity of premium retail space continues to be the main obstacle to this expansion. “Brands are increasingly selective and demanding in the choice of locations and in the design of their stores, prioritizing experiences that complement their online presence,” Savills notes in the study.
In Lisbon, the report states that “the main commercial arteries maintained their attractiveness,” highlighting streets such as Garrett, Carmo, and Augusta. In Porto, Rua de Santa Catarina, the Aliados area, and Rua das Flores “continued to lead high-street commerce and to concentrate a large part of the demand.” The comprehensive data provides a detailed snapshot of a market in transition, balancing high demand with emerging price stability. Stay informed on Lisbon property market developments at realestate-lisbon.com.
