Portuguese House Prices Post Record 22.8% Annual Growth in September
Portugal's residential property market registered a historic surge in prices in September, with the national index reporting a 22.8% year-over-year increase, according to data released by Confidencial Imobiliário. This represents the highest annual growth rate since the firm's Residential Price Index began in 1988. The announcement underscores a period of intense market acceleration, with quarterly prices also hitting a new record, rising by 6.9% in the third quarter of 2025.
The source of this data, Confidencial Imobiliário, is a leading real estate information provider in Portugal, and its methodology involves tracking transaction values across the country to compile the index. The data is sourced from a comprehensive database that includes information from real estate agencies and other market players, ensuring a broad and representative view of market behavior. The findings are further corroborated by SIR – Sistema de Informação Residencial, which provided specific price-point data.
The specific numerical findings for September are unprecedented. The 22.8% annual increase marks a significant jump from the 11.0% rate seen at the end of 2024. This acceleration has been driven by consistent monthly price growth of approximately 2.0% since January 2025, with September alone recording a 2.4% increase. The average selling price in mainland Portugal reached €2,885 per square meter, a figure that starkly contrasts with the €1,573 per square meter average recorded in September 2020, representing a 97.4% increase over five years.
While the report covers mainland Portugal, the price appreciation has been particularly pronounced in major urban centers and popular coastal regions. Lisbon, Porto, and the Algarve continue to be the primary drivers of this growth, fueled by strong demand from international buyers, expatriates, and investors, alongside persistent domestic demand. The luxury market segment, in particular, has shown exceptional resilience and growth, while mid-range and affordable housing segments face increasing pressure due to supply constraints. For a closer look at specific area trends, investors often consult guides on Lisbon's diverse neighborhoods.
The time period comparisons reveal a market in a clear upward trajectory. The previous peak for annual growth was 21.1% in November 1991, a figure that was only surpassed for the first time in over three decades in August 2025 (21.6%), before being decisively broken by September's 22.8% rate. This sustained, multi-year growth cycle indicates deep structural demand in the market that has weathered economic shifts. Further analysis can be found in our market intelligence and analysis blog.
Need Expert Guidance?
Get personalized insights from verified real estate professionals, lawyers, architects, and more.
Industry experts comment that this statistical trend is a result of several converging factors, including Portugal's attractiveness as a lifestyle and investment destination, ongoing supply shortages in key areas, and a post-pandemic surge in demand for quality housing. An economist from a major Portuguese bank noted, "The data confirms that demand continues to outstrip supply significantly. While rising interest rates were expected to cool the market, the underlying desire for Portuguese property, especially from cash-heavy foreign buyers, has maintained strong upward pressure on prices."
The Portuguese government has acknowledged the rapid price increases, with the Minister for Housing recently stating that addressing housing affordability is a top priority. However, significant policy interventions that could immediately temper this growth have yet to be implemented, suggesting that the current market dynamics may persist in the short to medium term. The historical context shows that while the market is cyclical, the current phase of growth is one of the most powerful and sustained in the nation's history.
Confidencial Imobiliário will continue to release its monthly and quarterly indices, with the next major data release expected in early January to cover the full fourth quarter of 2025. These future reports will be critical for assessing whether this record-breaking momentum can be maintained heading into the new year.
Stay informed on Lisbon property market developments at realestate-lisbon.com.