Greater Porto's Housing Market Reports Increased Dynamism and Rising Prices
The residential real estate market in the Greater Porto area is demonstrating significantly more dynamism than it did one year ago. The region is witnessing a rise in new construction projects, the emergence of new residential centralities, and an increase in the number of homes sold. New construction has been a key driver, both boosting and diversifying the housing supply across the metropolis. However, the demand for homes to purchase has been exceptionally high and continues to grow, absorbing available inventory and consequently pushing up housing prices across all 17 municipalities that constitute the Porto Metropolitan Area.
Throughout 2025, Portuguese families have been more active in the property market, encouraged by a more favorable economic climate characterized by lower interest rates and new government support measures for young buyers, such as an exemption from the IMT (Property Transfer Tax) and a public guarantee on financing. This trend has been particularly palpable in the Porto region. 'Globally, the Greater Porto market is, today, considerably more active in terms of transactions than it was a year ago,' stated Alfredo Valente, CEO of iad Portugal.
Ricardo Valente, Managing Director at Savills Porto, confirmed this assessment, noting that the residential market in the Porto Metropolitan Area is 'more active' in 2025 than in the previous year. This is evidenced by a quantifiable increase in business transactions, new developments, and housing prices. 'The fundamental reason for this dynamic is linked to the Porto region's establishment as a hub for quality of life, featuring an increasingly rich cultural offering, reputable universities, and an expanding economic ecosystem capable of attracting talent and investment,' the former municipal councilor explained to idealista/news.
Over the last year, the available supply of for-sale housing, including both new and existing homes, has decreased in 14 of the 17 municipalities in Greater Porto. The most substantial reductions in inventory were recorded in Gondomar and Vila do Conde. An increase in residential stock for sale was only registered in Vila Nova de Gaia, Trofa, and Valongo, and even there, the growth was below 5%. The municipalities of Porto and Vila Nova de Gaia currently have the largest number of homes on the market, with over 15,000 units available in each.
Consistent with the national trend, the demand for homes for sale has intensified in Greater Porto, with the strongest interest seen in the peripheral municipalities where prices are generally more accessible. Significant demand pressure was noted in Paredes, Maia, and Valongo. Ricardo Valente highlighted three municipalities that stood out 'for their combination of competitive prices, modern infrastructure, and urban requalification projects that enhance neighborhoods and promote pleasant residential environments.' He pointed to Matosinhos, Maia, and Vila Nova de Gaia, where demand has 'grown consistently' over the past year. This reflects a decentralization trend, enabling families to access quality housing with good connections to the city center and comprehensive urban services.
Experts confirm that Portuguese buyers are the primary market drivers in Greater Porto. In recent months, a 'strong dynamic among younger age groups' has been observed, spurred by governmental support for first-time homebuyers, according to Alfredo Valente. Regarding international demand, Ricardo Valente noted that Porto's appeal to the foreign market is 'growing,' with particular interest from North American, Brazilian, and French families and investors. 'International buyers are seeking mid-to-high-range properties, especially three and four-bedroom homes (T3 and T4) in areas like Foz and Boavista, as well as one and two-bedroom apartments (T1 and T2) in the city center, primarily for rental investment purposes,' he concluded.
Despite the increase in new residential construction, housing demand has been robust enough to absorb both new and existing home supply. This imbalance has been the primary catalyst for the rise in sale prices across the metropolis. The most significant price increases over the last year were recorded in Vale de Cambra (+56%), Arouca (+39%), and Paredes (+25%). The municipalities of Porto and Matosinhos experienced the smallest price rises, though they, along with Vila Nova de Gaia, remain the three most expensive municipalities in the region.
Stay informed on Lisbon property market developments at realestate-lisbon.com.
