Latest news and stories about housing costs in property in Portugal for expats and residents.
While global housing markets cooled in early 2026, Portugal saw real house prices climb by 15.2% year-on-year, the highest increase among 57 economies tracked by the Bank for International Settlements. This growth contrasts sharply with the global trend, where real house prices dropped by an average of 1.2% during the same period.
Portugal has recorded the highest growth in house prices among nearly 60 countries analyzed, contrasting with a global cooling trend where real housing prices fell by 1.2% in the first quarter. The data highlights the continued pressure on the Portuguese property market despite international shifts.
Homeowners with mortgage reviews in October face the sharpest payment increases in three years due to rising Euribor rates following recent European Central Bank interest rate hikes.
Data from the INE reveals that median housing prices in Portugal surged to 2,337 euros per square metre in the first quarter, marking a nearly 20 percent year-on-year increase driven by foreign investment.
In 2023, Portugal ranks among the EU countries with the lowest purchasing power, with its average annual income allowing for the purchase of only 11 baskets of essential goods, significantly less than the 24 baskets that can be afforded by an average Luxembourger. This disparity highlights the economic challenges faced by Portuguese residents, particularly in the context of rising housing costs.
Portugal has experienced significant increases in house prices since 2020, according to data from Pordata. Despite this rise, the country still ranks among those with the lowest purchasing power, with only Greece having higher housing costs relative to income.
The headline of DN on Wednesday, 18 February, highlights that despite an increase in the supply of rental homes, rents continue to rise, particularly in major urban centers where costs exceed one thousand euros. Government measures are anticipated to enhance supply, but their effects are expected to manifest in the medium to long term. The edition also features a report on social media access for young people, an interview commemorating the 40th anniversary of the first heart transplant, discussions on fame in sports, cultural insights into Lídia Jorge's novels, an obituary for civil rights advocate Jesse Jackson, and economic statistics regarding female workers' earnings.
Households with mortgages tied to the six-month Euribor — the most commonly used term — will see their monthly instalments increase in February. The change raises borrowing costs and is likely to squeeze household budgets as loan repayments climb.
Portugal recorded the highest increase in residential property prices across the European Union in the second quarter of the year.
The cost of residential property per square metre in Portugal continues to reach record highs, although the rate of growth is showing signs of deceleration.
The median bank appraisal value for housing reached a new all-time high of 2,254 euros per square metre in August, according to data from the National Statistics Institute (INE). This represents a 14-euro increase from the previous month and a 14.7% rise compared to August 2025. While the year-on-year growth of 14.7% is significant, it is slightly lower than the 15.2% recorded in July. The Setúbal Peninsula saw the highest monthly increase at 1.6%, while the Algarve experienced the sharpest decline at 1.2%. Greater Lisbon and the Algarve recorded the highest property values, while the Centre and Alentejo regions reported the lowest.
Existing homes became 18% more expensive
The median bank valuation for housing reached a new record of 2,240 euros per square metre in July. This figure represents an increase of 12 euros compared to the previous month and is 15.2% higher than the same month in 2025, according to the National Statistics Institute (INE). While the year-on-year growth of 15.2% is lower than the 16.6% observed in June, the monthly variation stood at 0.5%. The Alentejo region saw the highest monthly increase at 1.3%, while the Azores recorded the sharpest decline at 1.9%. Greater Lisbon and the Algarve remain the most expensive regions, with values of 3,469 and 3,010 euros per square metre respectively. The total number of bank valuations for mortgage applications reached 34,053 in July, a 1.4% increase from the previous month.
The mortgage interest rate value recorded in July, at 3.135%, represents an increase of 3.4 basis points compared to the 3.101% in June. In July, the average monthly payment was 414 euros.
One must go back to October 2025 to see a higher value for mortgage interest rates. Interest rates have risen for the second time in a row, which had not happened since January 2024.
Portugal positions itself as one of the strongest residential markets globally. It also records an annual real growth of 13.4%, the fourth highest value among the markets monitored.
Data from the Imovirtual platform indicates that seven Portuguese municipalities have reached an average property price of at least 750,000 euros.
The median bank valuation for housing reached a new historical peak of 2,228 euros per square metre in June, an increase of 20 euros from the previous month and 16.6% higher than the same month in 2025, according to data released today by the National Statistics Institute (INE).
The Autonomous Region of the Azores was the region where the most significant increase was recorded compared to the previous month
Data from the INE show that the median value of housing in Portugal reached 2,337 euros per square metre. This represents an increase of almost 20 percent compared to the first quarter of last year.
In the first three months of the year, the average price for housing sales in Portugal was 2,337 euros per square metre.
Home News An extra bedroom becomes one of Portugal biggest housing expenses An extra bedroom becomes one of Portugal biggest housing expenses According to new data from property portal Imovirtual, buyers looking to move from a three-bedroom apartment (T3) to a four-bedroom property (T4) can expec
Protecting the environment and building more housing are not incompatible goals. The current absence of an adequate standard does not even protect the environment. On the contrary, it actually makes construction more expensive.
The median value of rents for new contracts fell by 3.3% in the first quarter compared to the previous quarter, according to the INE. This is further data that appears to indicate a cooling of real estate prices.
Demand for housing is expected to cool, according to rating agency DBRS Morningstar, which identifies three contributing factors. However, the available market supply remains insufficient to curb price growth, which is set to continue rising. These are the main conclusions of the agency's report, 'Spain and Portugal: Demand Drivers of Rapid Property Price Growth to Slow, Supply Constraints to Persist,' which examines the housing markets in both Iberian countries. The agency notes that conditions driving demand are losing momentum, citing the temporary nature of government support policies, such as tax exemptions for young people, and an expected slowdown in population growth as immigration flows decrease. Furthermore, deteriorating affordability, particularly in Portugal where house prices have significantly outpaced wage growth over the last decade, is expected to weaken demand. Stricter financing conditions, including the Bank of Portugal's proposal to lower the debt-to-income ratio, and rising interest rates further impact consumer borrowing costs. Meanwhile, supply remains constrained due to low construction levels since the 2008 crash, labor shortages, rising material costs, and bureaucratic hurdles. The report also highlights that foreign buyers and the tourism boom, which has increased short-term rentals, are further exacerbating supply-demand imbalances.
A new all-time high of 2,208 euros per square metre in May represents an increase of 34 euros compared to the previous month and 17.1% relative to the same month in 2025.
The median bank valuation for housing stood at 2,208 euros per square metre in May, 17.1% higher than the same month in 2025. The Oeste e Vale do Tejo and Norte regions recorded the largest increases.
Home News Bank valuation of housing in Portugal hits new record Bank valuation of housing in Portugal hits new record The median value of bank valuations for housing reached a new historical high of €2,208 per square metre in May.
Housing prices more than doubled in 157 municipalities between 2017 and 2025, with the highest increases recorded in the Porto Metropolitan Area, Greater Lisbon, and the Setúbal Peninsula, according to the Bank of Portugal.
In the municipalities of Sintra, Seixal, Barreiro, Moita, and Setúbal, the variation in the median value per square metre of houses sold showed figures exceeding 200% during the period under analysis.
Property prices in Portugal continue to rise, marking the seventh month in a row of record-breaking values.
