Portugal's Property Prices Surge by 18.7% in Q1 2025, Lisbon and Cascais Lead

Lisbon and Cascais Property Prices Skyrocket as Portugal's Market Heats Up in Q1 2025

Foreign investors, take note: Portugal's real estate market is experiencing a significant acceleration, with the national median property price jumping 18.7% in the first quarter of 2025. Data from the National Statistics Institute (INE) reveals a thriving market where transaction volumes have increased by nearly 25%, confirming strong and sustained demand. For those looking at prime locations, the Lisbon metropolitan area remains the epicenter of this growth.

The report underscores the value proposition in key investment hubs. The municipality of Lisbon leads with a median price of €4,492 per square meter, while the exclusive coastal town of Cascais is right behind at €4,477 per square meter. These figures represent a prime opportunity for capital appreciation in two of Europe's most desirable locations.

The data points to a seller's market in high-demand areas. 'The acceleration in 16 of the country's 24 largest municipalities, including a notable 14.8 percentage point jump in Cascais's growth rate, is a clear signal of intense demand,' explains a financial analyst specializing in Iberian real estate. 'Investors who act now are positioning themselves to benefit from this upward trajectory. The window for acquiring properties at today's prices is narrowing.'

• Focus on Prime Locations: With Lisbon and Cascais showing the highest prices and strong growth, these areas offer the most reliable returns and long-term value.
• Analyze Growth Rates: The significant acceleration in Cascais suggests it is a market with rapidly increasing momentum, potentially offering higher short-term gains.
• Consider Porto: As a secondary hub, Porto offers a more accessible entry point at €3,066/m² but still benefits from the overall positive market sentiment.
• Act Decisively: The 24.9% increase in transaction volume indicates that properties are moving quickly. A decisive strategy is essential to secure desirable assets.

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