Portuguese House Prices Record Largest Increase Since 2022
Residential property prices in mainland Portugal registered a year-on-year increase of 17.7% in June, the highest rate of growth seen since the end of 2022. The data, released by Confidencial Imobiliário as part of its Residential Price Index, points to a significant acceleration in the housing market throughout the first half of 2025. This latest statistical announcement confirms that the market has gained considerable momentum this year. The annual valuation rate has climbed from 11.0% at the end of 2024 to its current level. The analysis from Confidencial Imobiliário is based on its comprehensive database, which tracks real estate transactions across the country. The month of June contributed significantly to this trend, with a monthly price increase of 1.8%. This restored the strong pattern of monthly gains, which have averaged around 2.0% in 2025, following a brief pause in May that saw a minor 0.2% rise. In the second quarter of 2025, prices saw a quarterly increase of 3.4%, further cementing the market's upward trend. The data provides a clear picture of sustained price appreciation across the country. The source of this data is the Residential Information System (SIR), a database managed by Confidencial Imobiliário that is widely used by industry professionals for market analysis. In terms of specific numerical findings, the average selling price for housing in Portugal reached €2,778 per square meter during the second quarter. The market shows a clear segmentation between new and existing properties. The average price for new homes stood at €3,771 per square meter, while the average for used homes was €2,559 per square meter. This price differential highlights the premium being placed on new construction and modern amenities. Transaction volume has remained stable, according to projections from the SIR database. Confidencial Imobiliário estimates that 40,450 housing transactions were completed in mainland Portugal during the second quarter of the year. This volume is in line with the patterns observed in recent quarters, suggesting that the price increases are supported by a consistent level of market activity rather than a speculative bubble. The government and real estate industry bodies will be closely monitoring these figures. The sharp increase in prices presents both opportunities for property owners and challenges for housing affordability, a topic of ongoing public debate. The data indicates a robust market but also underscores the pressures on housing supply, particularly for new builds. Stay informed on Lisbon property market developments at realestate-lisbon.com.
