Portuguese Housing Prices Surpass €2,000/m² for First Time
The median price of residential properties sold in Portugal exceeded €2,000 per square meter for the first time in the nation's history during the second quarter of 2025, according to the latest official data. This new record highlights a period of intense and sustained growth in the national housing market, with significant price appreciation registered in municipalities ranging from Vila Nova de Gaia in the north to Amadora in the Lisbon metropolitan area.
The statistical milestone was confirmed in a report from the National Statistics Institute (INE), which tracks housing transactions across the country. The analysis pointed to a confluence of factors driving the market, including heightened demand from international buyers, a limited supply of new housing stock, and persistent inflation in construction costs. The second-quarter figures represent a year-over-year increase of approximately 8.7%, continuing a multi-year trend of upward price movements. For a comprehensive overview of market dynamics, investors often consult resources like our market intelligence and analysis blog.
Breaking down the data geographically, the report indicates that while the Lisbon and Porto metropolitan areas remain the most expensive markets, the highest percentage growth rates are increasingly seen in adjacent municipalities. Amadora, for instance, recorded a quarterly price increase of 4.2%, as buyers and investors look for opportunities in well-connected suburban areas. An economist cited in the report noted, "The spillover effect from the main urban centers is now a primary driver of the national average. We are seeing a revaluation of peripheral zones that offer good infrastructure and quality of life."
The market segment analysis reveals that both new and existing homes contributed to the price surge. The price of new constructions saw a slightly faster acceleration due to rising material and labor costs, a trend that is impacting developers nationwide. This has led to a more competitive market for existing homes, particularly those in good condition and desirable locations. Navigating these trends can be complex, and many international clients seek guidance from agents specializing in international clients.
Need Expert Guidance?
Get personalized insights from verified real estate professionals, lawyers, architects, and more.
In response to the data, government officials have reiterated their commitment to the 'More Housing' (Mais Habitação) program, which aims to cool the market by increasing the supply of affordable rental properties and simplifying licensing for new construction. However, the effects of these policies have yet to fully materialize in the market statistics. The Bank of Portugal continues to monitor the situation closely, particularly in relation to household debt levels associated with mortgages. Understanding the legal side is also crucial, with many buyers reviewing our guide on legal issues.
The INE is expected to release its next detailed quarterly report in January 2026, which will provide further insights into the market's trajectory for the remainder of the year. Until then, the current data confirms a robust and appreciating market, presenting both opportunities and challenges for participants.
Stay informed on Lisbon property market developments at realestate-lisbon.com.