Portuguese House Prices Rise 20.6% in July, Approaching Historic Peak
The average sale price for residential homes in mainland Portugal increased by 20.6% in July compared to the same month in 2024, according to the latest Residential Price Index published by Confidencial Imobiliário. This significant valuation brings the market close to its historical record increase of 21.1%, a figure reached only twice in the last 37 years, first in November 1991 and again in August 2022.
On a month-over-month basis, the price increase was 2.6%, showing an acceleration from the 1.8% growth rate observed in June. Confidencial Imobiliário notes that this trend is consistent with a cycle of strong monthly price hikes seen throughout 2025, with several consecutive months posting increases above 2.0%.
The report attributes the continued price inflation to high demand from buyers coupled with a structural shortage of available housing supply. Transaction data supports this analysis, with projections from the SIR-Residential Information System indicating that 41,970 homes were sold in mainland Portugal between May and July. This represents a 5.4% increase in sales volume compared to the preceding quarter.
The average sale price across all properties in the analyzed period reached €2,804 per square meter. The data shows a clear distinction between market segments, with the average price for new construction homes reaching €3,644 per square meter, while the average for existing or used homes was €2,645 per square meter. The sustained upward movement in both prices and transaction volumes points to continued pressure in the Portuguese housing market. Stay informed on Lisbon property market developments at realestate-lisbon.com.
