House Values in Portugal Gow by 13.7 Percent

Portugal’s property market continues to propel forward at a fast rate, with house prices having risen by 13.7 percent in 2024. For property buyers seeking value in long-term investments, Portugal remains an intelligent choice, offering capital appreciation potential that shows no signs of slowing down.

Portugal Outperforms Other EU Property Markets

Portugal is overperforming other well-established European real estate markets, positioning itself as having the third-highest growth in Europe, and fourth-highest growth globally, according to the latest Knight Frank Global House Price Index.

According to this Index, which analyzed 55 housing market across the world, house prices are still increasing in Portugal, while the global pace of growth has slowed compared with 2023.

The average global house price growth over the past 12 months is 2.6 percent, a reduction from 3.9 percent in 2023, and reflecting a cooling period for property prices worldwide.

In contrast, Portugal has significantly outperformed the global average, highlighting strong and sustained demand.

Gonçalo Peixoto, Head of Real Estate at Goldcrest, sums this up neatly. “Where a lot of countries are struggling to maintain their real-estate prices, Portugal’s track record is amazing: Seven to eight years of resilience and steady growth. Portugal’s market isn’t just holding value—it’s delivering capital growth where many other European markets are flat or declining.”

You can find out more in our Live event: Portugal: The Executive Advantage for Business Leaders Seeking an Elevated Life.

Why do property prices in Portugal continue to rise?

Property prices in Portugal continue to rise for a number of reasons, with the lifestyle allure of Portugal and strong investment returns both strong contributing factors. Alongside this, the drop in interest rates is another pull factor, while greater international geopolitical instability has led more to seek stability in one of the safest countries in the world with a high quality of life and robust property market.

Portugal ranks as the seventh safest country in the world, according to the 2024 Global Peace Index, from the Institute of Economics & Peace and Portugal’s wide range of residency options make it easy for many to relocate to the country.

These factors, alongside high demand, boost buyer confidence and drive property prices higher.

Regions in Portugal with High Capital Appreciation

While Lisbon, Porto, and the Algarve have long been known to reap strong returns, with properties in these locations increasing in value year-on-year, Portugal’s property market has much more to offer besides these hotspot locations.

Parts of the Alentejo and Northern Portugal, for example, offer excellent prices in comparison, providing opportunities for buyers seeking capital growth at a lower entry point, as these locations look set to increase in popularity – and value – in the coming years.

How does Portugal perform in the Global Rankings?

Amongst the highest performing housing markets in 2024, Turkey leads the Global House Price Index with an impressive 29.4 percent growth. This is followed by Bulgaria (16.3 percent), Poland (14.2 percent), and Portugal (13.7 percent).

This Index demonstrates that Portugal is firmly placed amongst the fastest-growing property markets in the world.

What does the future hold for Portugal’s property market?

Looking to the future, given Portugal’s strong track record over the past ten years, alongside the fact that its property market is seeing greater growth compared to other established countries, we can predict a positive outlook for the future of Portuguese real estate.

With demand remaining strong, the country is poised to continue attracting property investors seeking stability and long-term growth. For those seeking properties that continue to increase substantially in value, Portugal offers an exceptionally resilient market—characterized by consistent capital gains and strong international demand that together fuel ongoing appreciation.

A Note on Capital Gains Tax in Portugal

While Portugal offers strong potential for capital appreciation, bear in mind Portugal Capital Gains Tax, which needs to be paid when selling your property in Portugal and planning your investment strategy.

Capital Gains Tax in Portugal is charged on the sale of the property at a rate of 28 percent. Residents pay 28 percent on just 50 percent of their capital gain, while non-residents pay tax on the full gain amount.

However, various exemptions and reductions are available. If you reinvest the proceeds from your property sale into another main home in Portugal or elsewhere in the EU or EEA that has a tax treaty with Portugal, then you are not required to pay tax on capital gains.

Note that the property must be your primary residence and to qualify, you will need to reinvest in the property within 36 months after the sale of the property or 24 months before the sale.

Goldcrest: How We Can Help You

Compared with other markets, buying property in Portugal provides less-risk compared with other markets, due to sustained growth and its strong performance over the years. However, as with any investment, property buyers should consider tax implications, which areas are the best for capital growth and evolving market conditions.

To ensure you have access to all the data at your fingertips, an overview of high-value locations, and insights into the buying process, get in touch with us at Goldcrest. We ensure you make smart investment decisions, working alongside you to ensure your property goals in Portugal are met.

For a breakdown of what we can offer, take a look at what sets us apart: Why Work with Goldcrest to Buy Property in Portugal?