INE Reports 19% Year-on-Year Rise in Portuguese Housing Prices for Q2 2025
The Instituto Nacional de Estatística (INE) has announced that the median price of family homes in Portugal saw a year-on-year increase of 19% in the second quarter of 2025. This figure indicates a slight acceleration from the 18.7% growth observed in the first quarter of the year. The total number of transactions also grew significantly, with 41,608 sales recorded, marking a 15.6% increase compared to the same quarter in 2024.
According to the statistical release, the median price per square meter for family dwellings transacted across the country stood at €2,065. The data underscores a period of sustained and vigorous activity in the Portuguese housing market. For investors and prospective buyers, these figures are essential for understanding current market dynamics, which are further explored in our market intelligence and analysis blog.
The INE report highlighted that the median housing price increased across all 26 NUTS III sub-regions when compared to the same period in 2024. The Baixo Alentejo region registered the most substantial growth, with a remarkable 38.7% rise in its median price. This widespread appreciation suggests that the market's upward trend is a national phenomenon, extending beyond the primary metropolitan areas.
Price growth accelerated in 19 of the 24 municipalities with more than 100,000 inhabitants. The municipalities of Vila Nova de Gaia (+13.4 percentage points), Coimbra (+12.7 p.p.), and Amadora (+10.9 p.p.) recorded the largest accelerations in their year-on-year growth rates. Conversely, the municipality of Cascais saw the largest slowdown, with its rate of change decreasing by 6.6 percentage points compared to the previous quarter. The municipalities of Lisbon and Porto experienced accelerations of 4.2 and 4.9 percentage points, respectively.
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The highest median prices were recorded in municipalities within the Lisbon metropolitan area and in Porto. Lisbon led the list with a median price of €4,865 per square meter, followed by Cascais (€4,346/m²), Oeiras (€4,161/m²), Porto (€3,309/m²), Odivelas (€3,219/m²), and Almada (€3,101/m²). These prices reflect the continued high demand in these key urban centers. A detailed breakdown of these areas can be found in our guide to Lisbon's neighborhoods.
An economist from a leading Portuguese bank commented on the data, stating, “The continued increase in both prices and transaction volume points to strong market fundamentals, driven by both domestic and international demand. The acceleration in many large municipalities suggests that the core drivers of the market remain robust, despite broader economic pressures.” This analysis is crucial for anyone assessing potential investment risks.
The INE's report provides a comprehensive overview of the housing market's performance, confirming a trend of significant price appreciation and high transaction volumes continuing into the second quarter of 2025.
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