Portuguese Housing Prices Report Largest Annual Increase Since Late 2024
The Portuguese real estate market registered a significant acceleration in July, with housing prices increasing by 8.5% compared to the same month in 2024, according to the latest price index from the property portal Idealista. This represents the most substantial year-over-year rise since December 2024, when the annual growth rate was 10.4%. The data, released on the first of August, indicates a steady upward trend throughout the current year, with the growth rate surpassing 8% in both June and July.
The national average price for housing reached €2,926 per square meter (m2), an increase of €99/m2 from the €2,827/m2 recorded at the end of 2024. This development reflects sustained demand across the country. The report highlights that prices rose in 17 of the nation's district capitals. The most significant increases were observed in Santarém (24%), Setúbal (20.8%), and Guarda (18.5%). Other notable rises occurred in Ponta Delgada (13.1%), Évora (12.1%), and Viana do Castelo (10.7%).
In the country's main urban centers, the price evolution was more moderate. In Lisbon, prices increased by 3.5% year-over-year, while in Porto, the rise was 5.9%. Despite the smaller percentage increase, Lisbon remains the most expensive city to acquire property, with an average cost of €5,829/m2. Following the capital are Porto, at €3,804/m2, and Funchal, at €3,679/m2. The data shows a wide disparity in property values across the nation, with cities like Portalegre (€871/m2) and Castelo Branco (€906/m2) offering the most affordable housing.
An analysis by districts and islands reveals a similar pattern of widespread growth. The highest price surges were recorded on the island of São Miguel (25%), the island of Porto Santo (23.4%), and in the district of Beja (20.7%). The district of Lisbon saw an 8.1% increase, while Porto registered a 9.5% rise. In terms of absolute cost, the district of Lisbon leads as the most expensive area to purchase a home, at an average of €4,451/m2, followed by Faro (€3,753/m2) and the island of Madeira (€3,476/m2).
On a regional basis, all areas of Portugal saw price increases. The Autonomous Region of the Azores reported the highest growth at 19.7%, with the Alentejo region following at 15.5%. The Lisbon Metropolitan Area, the country's most expensive region at €4,111/m2, saw prices climb by 9.8%. The Algarve, another key market, registered a 9.9% increase, with average prices at €3,753/m2. According to market analysts, these figures indicate a robust and dynamic market, with growth extending beyond the primary metropolitan areas into secondary cities and regions.
The official data from Idealista is compiled based on asking prices for properties listed on its platform. The methodology involves analyzing offer prices based on constructed square meters and filtering out atypical listings to ensure market accuracy. The final index is derived from the median of all valid advertisements within each market segment. Future reports will be watched closely to determine if this growth momentum is sustained in the coming months. Stay informed on Lisbon property market developments at realestate-lisbon.com.
