Lisbon Leads as Portugal's Property Prices Jump 18.7% in Q1 2025
Foreign investors eyeing the Portuguese real estate market have new data to consider as the National Statistics Institute (INE) reports a significant 18.7% year-over-year increase in median house prices for the first quarter of 2025. This marks an acceleration from the previous quarter, with the median price now at €1,951 per square meter, signaling strong and sustained capital growth potential across the country.
The Lisbon metropolitan area continues to dominate as the most valuable real estate hub. With prices in the capital hitting €4,492 per square meter, followed closely by the luxury enclave of Cascais at €4,477 per square meter, the region remains a prime target for high-return investments.
What Foreign Investors Need to KnowThe nearly 25% surge in the number of transactions underscores a highly liquid and confident market. For investors, this means not only is the value of assets increasing, but the ease of entry and exit remains strong. "The acceleration in both price and sales volume is a clear indicator of market health," notes financial analyst Ricardo Valente. "It tells international buyers that demand is robust and the investment environment is positive, particularly in strategic locations like Lisbon and its surrounding municipalities like Oeiras and Odivelas, which also feature in the top five most expensive areas."
Actionable Steps for Today's Buyer- Focus on Growth Hubs: While Lisbon remains the crown jewel, the data shows significant price acceleration in municipalities like Cascais (+14.8 p.p.), indicating strong momentum for capital appreciation.
- Explore Emerging Regions: The staggering 51.6% price growth in Alto Alentejo suggests that diversifying into less-saturated markets could yield exceptional returns.
- Analyze Market Deceleration: The slowdown in price growth in Funchal (-30.2 p.p.) could present a strategic buying opportunity in a stabilizing market before the next growth cycle begins.
- Leverage Market Liquidity: With transaction volumes up nearly 25%, investors can act with confidence, knowing the market is active and responsive.
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