Portuguese Sale and Rental Prices Reach New August Highs
The average asking price for property sales in Portugal rose to €426,000 in August 2025, according to the latest monthly barometer from the property portal Imovirtual. This figure marks a 1% increase from the previous month and a significant 15% appreciation compared to August 2024, when the average price was €369,000. The rental market also saw continued growth, with the national average rent reaching a new record of €1,300, up 2% from July and 4% from the same month last year.
The data provides a detailed breakdown of price movements across the country's different regions. In the rental segment, Lisbon remains the most expensive city, with average rents increasing by 4% to €1,710. In the north of the country, the district of Porto continues to be the priciest, with rents rising by 5% to €1,150. Other northern cities such as Aveiro and Braga also recorded increases. In the central region, Coimbra saw a 7% appreciation to €800, while Santarém experienced a 6% decrease to €750. In the south, Faro's average rent climbed to €1,300, while Portalegre recorded the highest monthly rental growth in the country, a 27% jump to €700.
In the property sales market, Lisbon once again posted the highest average price, reaching €650,000. Porto's average sale price increased to €425,000, solidifying its position as the most expensive district in the north. In the Algarve, the average price in Faro reached €550,000, followed by Setúbal at €450,000. Buyer and seller activity has remained robust despite the rising prices, with transaction volumes holding steady. Real estate agencies report strong interest from both domestic and international clients, particularly in the major urban centers.
The autonomous regions presented a mixed picture. The island of Madeira recorded a high average sale price of €575,000. In the Azores, the island of São Miguel saw its average price hold at €399,000, which still represents a 29% year-on-year increase. However, on the rental side, São Miguel experienced a 25% monthly decrease to €900. The mortgage market has responded to these price trends with caution, with banks applying rigorous stress tests to loan applications. A market analyst, Nuno Braga, who authored the report, noted, "The continued upward trend in both sales and rentals points to a persistent supply-demand imbalance in the Portuguese housing market, especially in key metropolitan areas." Local governments are reportedly considering new policy measures to address housing affordability in response to these ongoing price increases. Stay informed on Lisbon property market developments at realestate-lisbon.com.