Housing Prices Rise in 19 of 24 Largest Portuguese Municipalities
Housing prices in Portugal accelerated in 19 of the nation's 24 municipalities with more than 100,000 inhabitants during the second quarter of the year, according to the latest Local Housing Price statistics published on Wednesday by the National Statistics Institute (INE). The report confirms a broad-based trend of rising property values, with the national median price for family homes reaching €2,065 per square meter. This figure represents a 19.0% year-on-year increase compared to the second quarter of 2024. The volume of transactions also grew, with 41,608 homes sold, a 15.6% increase over the same period last year.
The highest median prices were recorded in the municipalities of Lisbon, Cascais, Oeiras, Porto, Odivelas, and Almada. The data shows a clear concentration of value in the country's major metropolitan areas. All municipalities with over 100,000 residents in the Greater Lisbon area, the Setúbal Peninsula, and the Porto Metropolitan Area (with the exceptions of Santa Maria da Feira and Gondomar) reported median prices above the national figure. The year-on-year price growth also gained momentum in the two largest cities, with the growth rate in Lisbon increasing by 4.2 percentage points and in Porto by 4.9 percentage points compared to the previous quarter. For a closer look at these key areas, our geographic deep dives provide detailed analysis.
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While the most expensive properties are in the established prime locations, the most significant acceleration in price growth was observed in Vila Nova de Gaia, Coimbra, and Amadora. Conversely, Cascais, despite remaining one of the priciest municipalities, registered the largest deceleration in its year-on-year growth rate. This may indicate a maturing market in some prime coastal areas and emerging strong growth in other large cities. Investors should be aware of the potential investment risks associated with rapidly changing markets.
The INE report also noted that the median housing price increased across all 26 NUTS III sub-regions of Portugal, demonstrating the nationwide scope of the current market cycle. The Baixo Alentejo region posted the highest year-on-year growth, with a remarkable 38.7% increase. The data also highlighted a price disparity for foreign buyers. In Greater Lisbon, properties acquired by buyers with a fiscal domicile abroad were, on average, 61.9% more expensive than those purchased by national residents. In the Porto Metropolitan Area, this premium was 29.0%. This suggests strong international demand for premium properties, a factor that can be further explored by connecting with agents specializing in international clients. Discover emerging areas and local opportunities at realestate-lisbon.com.