Portuguese House Prices Jump 19% in Second Quarter, INE Reports
The median price of housing in Portugal saw a year-over-year increase of 19% in the second quarter of 2025, according to data released this Wednesday by the National Statistics Institute (INE). This figure represents a slight acceleration compared to the 18.7% growth observed in the first quarter of the year, indicating continued and intensified pressure on the national real estate market. The number of transactions also grew significantly, with 41,608 family homes sold, a 15.6% increase over the same period in 2024.
According to the INE's official bulletin on Housing Price Statistics at the Local Level, the median price per square meter for properties transacted nationwide stood at €2,065. The institute's methodology relies on fiscal data from property transactions, providing a comprehensive overview of market dynamics. The analysis confirms that the trend of rising prices is widespread, with increases registered across all 26 NUTS III sub-regions. The Baixo Alentejo region recorded the most substantial year-over-year growth, with prices soaring by 38.7%.
The data further reveals that price acceleration is becoming more widespread among the country's larger municipalities. In the second quarter, 19 of the 24 municipalities with over 100,000 inhabitants saw their housing prices accelerate, an increase from the 16 municipalities that recorded such a trend in the first quarter. The most significant accelerations in year-over-year growth rates were seen in Vila Nova de Gaia (+13.4 percentage points), Coimbra (+12.7 p.p.), and Amadora (+10.9 p.p.). This highlights a broadening of intense market activity beyond the primary urban centers. For more detailed analysis, investors often review market intelligence and analysis reports.
Conversely, the municipality of Cascais, traditionally one of the most expensive markets, experienced the largest slowdown, with its rate of homologous variation decreasing by 6.6 percentage points. Despite this deceleration, its prices remain among the highest. Meanwhile, the key markets of Lisbon and Porto both saw their growth rates increase, with Lisbon's rate climbing by 4.2 percentage points and Porto's by 4.9 percentage points between the first and second quarters of 2025. This signals renewed momentum in the country's two largest cities.
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In terms of absolute values, the Lisbon metropolitan area continues to dominate the top of the price table. The municipality of Lisbon itself presented the highest median price in the country, at €4,865 per square meter. It was followed by Cascais (€4,346/m²), Oeiras (€4,161/m²), and Almada (€3,101/m²), all within the Lisbon region. The city of Porto recorded a median price of €3,309 per square meter, while Odivelas, also in the Lisbon area, reached €3,219 per square meter. These figures confirm the persistent concentration of high-value real estate in and around the capital, a key factor for anyone studying location issues before purchase.
The consistent rise in both transaction volume and prices points to a market with strong underlying demand that continues to outstrip supply. Economists and market experts will be closely watching these indicators in the upcoming quarters to assess the sustainability of this growth. The data provided by the INE is crucial for the government and financial institutions in shaping housing policy and assessing economic stability. Navigating such a dynamic environment often requires professional advice, particularly concerning financial concerns and investment risks.
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