Portugal House Prices: 2025 Property Pricing Guide for International Investors

Average House Prices in Portugal by City

Portugal features a variety of lifestyle benefits that make it an appealing destination for many expats. One of the most appealing aspects of moving to Portugal is the lower cost of living and affordable housing options. GDP growth in Portugal is rising, expected to rise by 2.2 percent in 2026.

If you can picture your next chapter of life enjoying a warm and inviting climate, stunning beaches gracing the shores of the Atlantic Ocean, and living in a country that is budget-friendly, then a move to Portugal is worth serious consideration. Portugal also offers a great selection of international schools and tertiary education institutions for those seeking top-notch education, in addition to having an efficient national healthcare system.

In the sections below, we will explore the house prices in Portugal as a whole and in a few of the best places to buy Portuguese property.

Average Portugal house prices

So, how much does buying property in Portugal cost? In 2025, the average price per m² in Portugal ranges from €1,903 to €4,935, depending on the region. The Lisbon Metropolitan area house prices have the highest averages, while the North region has the lowest. The Algarve also has relatively high prices.

• Lisbon Metropolitan Area: Asking prices typically range from €2,040 to €7,260, depending on the area, with Moita being the most affordable area and Cascais the most expensive.
• Algarve: One of the most expensive regions after Lisbon, with average prices ranging from €1,780 in Alcoutim to €5,672 in Loulé.
• North: More accessible entry points, with house prices averaging at €1,903, though Porto city reaches prices of €4,883.
• Central region: Among the most affordable for foreign and local Portuguese buyers, with house prices averaging €2,090.

The table below provides an overview of the average home price in Portugal per square meter for major Portuguese districts.

Note that the Portugal house prices reflected in the table are asking average price values, and the sales price can be considerably lower as sellers aim to sell by a set date. On the other side of the coin, properties can also be higher than this average price. Also, if you buy outside a city center or further from the coast, house prices in Portugal generally fall considerably below the average price.

Bear in mind that if you invest in the luxury property market, prices will be considerably higher than the average house price in Portugal, with prices often priced above €1 million.

Below, we delve into Portugal’s house prices by city, including the average price for property in the capital, Porto, cities in the Algarve, and others.

House prices in Lisbon

Lisbon is Portugal’s vibrant capital city, and the central business district features the most sought-after neighborhoods for buying residential property. The city offers modern apartments and houses along its cobbled streets, as well as a great selection of shopping boutiques and vibrant nightlife in areas like Baixa, Bairro Alto, and Príncipe Real.

The city also offers family-friendly neighborhoods like Estrela, where you will find spacious parks and natural attractions. Other neighborhoods to consider include Parque das Naçōes, Avenidas Novas, Alvalade, Belém, and Campo de Ourique. In the suburbs of Lisbon, house prices tend to drop. On the whole, buying property in Lisbon remains relatively affordable compared with other capital cities in Western Europe.

In the table below, we explore the average price per square meter for houses across these neighborhoods.

House prices in Cascais

Located just a 30-minute drive away, Cascais is a prime location for luxury living on Portugal’s stunning coastline. Renowned for its picturesque beaches, acclaimed dining establishments, and vibrant cultural offerings, the town has become a magnet for discerning residents and visitors alike.

Cascais is famous for its selection of world-class golf courses, beautiful marinas, and an atmosphere that effortlessly blends refined living with relaxation. Whether it’s basking in the sun on pristine shores or indulging in the finest amenities, buying property in Cascais, Portugal, offers an idyllic retreat for those seeking a sophisticated and laid-back lifestyle.

In the neighborhood of São Domingos de Rana, apartments and houses cost €3,841 per square meter, while areas like Alcabideche offer homes for €5,487 per square meter.

If you’re looking for pricier investments, consider the neighborhoods of Carcavelos and Parede, where properties start at €7,365 per square meter, or Cascais and Estoril, where you can find your dream home for €8,389 per square meter.

As with buying property anywhere in Portugal, if you are considering Cascais, you’ll want to have a property expert and Cascais real estate lawyer by your side to navigate the buying process and ensure you meet all the legal requirements.

House prices in the Algarve

Prospective foreign buyers considering buying property in the Algarve, Portugal, will find so much in store in this stunning region nestled along the sun-kissed shores of southern Portugal.

The Algarve is Portugal’s prime coastal market and offers irresistible azure coastlines, radiant beaches, and a magnetic charm that not only captivates tourists but also draws in a wave of expats and retirees yearning for a tranquil coastal lifestyle and a beautiful house in Portugal.

Amidst the picturesque scenery, world-class golf resorts and retreats dot the landscape alongside quaint fishing parishes, creating the perfect atmosphere for idyllic living.

In coveted areas like Faro, Albufeira, and Lagos, average real estate prices in Portugal per square meter reflect the region’s desirability, with Lagos properties priced at €5,0666, Albufeira at €4,176, and Faro, the Algarve’s bustling capital, at €3,701.

If your interest lies in more affordable options, Tavira homes are priced at €3,660 per square meter. The average house price for properties in the Eastern Algarve is largely cheaper than in the Central Algarve. The Algarve is one of the best regions to find villas in Portugal that come with beautiful ocean views.

House prices in Northern Portugal

In Northern Portugal, the variety of houses is as diverse as the region itself. Porto, the second largest city and point of access to authentic Portuguese culture and history, is a sought-after destination where homes are priced at €4,883 per square meter.

However, for those seeking more affordable options without sacrificing charm, Vila do Conde is a hidden gem where you can find residential property bargains priced at €2,832 per square meter. Matosinhos, with its stunning coastal vistas and bustling city life, is the middle ground in the North of Portugal, where the average Portugal house cost is €3,884 per square meter, catering to those drawn to both tranquility and urban convenience.

Meanwhile, Vila Nova de Gaia, renowned for its port wine tradition and scenic beauty, offers property options at a value of €3,759 per square meter, blending history with modern comforts, and where you can enjoy the very best views of Porto, on the other side of the Douro River. Whether one seeks bustling city life, coastal serenity, or a blend of both, Northern Portugal offers a diverse array of affordable housing options to suit every taste and lifestyle.

The North of Portugal is amongst the most affordable rural regions, with the average house price here being surprisingly low, particularly in the interior and lesser-known areas. Regional averages can vary widely, with properties close to cities commanding higher prices. Find out about the cheapest properties in our article: Cheap Houses for Sale in Portugal: An Overview.

House prices in Southwest Portugal

The housing market in Southwest Portugal varies significantly across different areas. Melides and Tróia, nestled within the Grândola municipality, offer homes priced from €5,845 per square meter, while Comporta, situated in the municipality of Alcácer do Sal, offers properties priced at €4,066 per square meter.

Both Comporta and Melides have seen an increase in popularity thanks to their stunning coastal landscapes and unique architectural designs that blend seamlessly with the surrounding natural beauty, leading to house price growth. Comporta, often dubbed the “Hamptons of Europe,” has attracted attention from celebrities and the elite, adding to its allure as an exclusive destination. Properties here often go far beyond €1 million, with the area a favorite for luxury real estate buyers.

Meanwhile, you will discover more affordable options in the Alentejo region, where the average property price starts from €3,181 per square meter. Known for its serene countryside dotted with vineyards and medieval villages, the Alentejo offers a tranquil escape from city life, appealing to those seeking a more traditional Portuguese lifestyle amidst picturesque surroundings.

House prices on the Madeira and Azores Islands

Portugal property prices on the picturesque islands of Madeira and the Azores are relatively low and offer exciting investment opportunities for international buyers. On São Miguel Island, the largest of the Azores, properties start at €2,276 per square meter, while in Madeira, property averages stand at €3,688 per square meter; these are benchmarks for potential figures in these autonomous regions.

Madeira, situated off the coast of northern Africa, stands out with its developed infrastructure, particularly in the cosmopolitan capital, Funchal. Buying property in Madeira, especially in sought-after destinations like Caleta and Funchal, can offer high rental yields and return on investment.

Meanwhile, the Azores, located northwest of Madeira, captivate with their unique landscapes, vibrant culinary scene, and lush green hills. Despite their differences, both islands share a common thread of breathtaking beauty, hospitable locals, and an exceptional quality of life.

House prices on the Silver Coast

Nestled along Portugal’s enchanting Silver Coast, this region offers a blend of natural beauty and cultural richness. Stretching between Lisbon and Porto, it boasts rugged cliffs, golden beaches, and quaint fishing villages, inviting you to immerse yourself in authentic local life.

Aveiro, known for scenic canals navigated by vibrantly colored boats, presents properties starting at €3,153 per square meter, while Figueira da Foz in the Coimbra district offers seaside living at €2,332 per square meter.

Caldas da Rainha, a charming city known for its healing spa waters, showcases properties priced from €2,299 per square meter, blending historical charm with modern comfort. Elsewhere, areas like Nazaré and Óbidos enchant with their unique attractions, offering properties at €2,856 and €3,657 per square meter, respectively, making the Silver Coast a diverse and alluring destination for property investment.

For remote workers and digital nomads who can work from wherever, the Silver Coast has an array of advantages for those seeking a peaceful and high-quality lifestyle. Peniche and Ericeira are other outstanding locations to consider, with Peniche offering a more authentic environment, while Ericeira is now a trending town for expats, with excellent surf, restaurants, and co-working spaces.

Available Property Types in Portugal and Purchase Prices

Portugal has many different property types, including apartments, townhouses, luxury villas, and countryside homes. Properties in rural areas are much cheaper than in urban areas, with the north, center, and Alentejo regions well-known for their affordability. At times, prices can be up to four or five times higher in urban areas compared with rural ones, particularly when comparing rural areas to Lisbon.

Additional Cost of Real Estate Ownership in Portugal

When it comes to the financial aspects of buying property, there are also additional property purchase fees and administrative fees that you should be aware of, alongside the cost of buying a home in Portugal.

Property Taxes and Fees

When buying property, you’ll need to take into account property prices at the time of purchase and on an annual basis.

Property taxes at time of purchase:

• IMT (Property Transfer Tax): Generally ranging from 0-8 percent, depending on the price, location, intended use, and property type. 10 percent if the buyer has connections to blacklisted jurisdictions.
• Stamp Duty: 0.8 percent

Annual property taxes

• IMI (Annual Municipality Tax): IMI is 0-3 to 0.45 percent of the total real estate value for urban properties and 0.8 percent for rural properties.
• AIMA (Additional to IMI): Owners of shares in real estate valued above €600,001 will need to pay AIMA, with staggering rates from 0.7 percent to 1.5 percent.

Legal and Notary Costs

• Legal fees: A lawyer will cost you approximately €2,000-€5,000, depending on the type of property, the price, and the complexities of the purchase.
• Land Registry Fee: There is a public fee for the Land Registry, amounting to €250.
• Notary Fees: Notary fees will cost you around €500-€1,000.
• Mortgage: Factor in costs for a mortgage broker, including the application fee of €290 and the bank valuation fee of €280.

It can be tricky to calculate the total cost of ownership, but factoring in fees and taxes alongside the cost of the home in Portugal is essential to avoid unpleasant surprises further down the line.

Factors Influencing Portugal House Prices

• High demand in hotspots: Tourism and international buyers have led to increased demand for short-term rentals and properties to purchase that now outpace supply, leading to property price increases, particularly in cities such as Lisbon, Porto, and coastal regions such as the Algarve.
• Foreign investment premium: More foreign buyers are attracted to Portugal, including retirees, young professionals, property investors, and families, with the demand for second homes also on the rise.
• Limited supply in major cities: The Portuguese government is banking on policy initiatives to boost housing supply to cater to problems surrounding demand outpacing supply, which are particularly an issue in Lisbon and Porto. Regarding resale pricing, resale homes also grow faster due to the limited supply.
• Construction costs: Higher labor costs and material costs have pushed up construction costs, making new build properties more expensive as a result.
• Tourism and short-term rentals: Tourism and foreign buyers have led to increased demand for short-term rentals and buy-to-let, with a projected 12 percent increase in tourism in 2026. For rental investors, Portugal remains a prime country to invest in, with high real estate investment volume continuing to rise in 2025 and beyond. Investors will need to adhere to short-term rental regulations, such as getting an Alojamento Local (AL License), of which there are restrictions in Lisbon at the moment.

Portugal House Prices vs. Other European Countries

How much does a house cost in Portugal compared to other European countries? Even though Portugal house prices have increased rapidly in recent years – registering some of the highest price rises in the EU – the country still has some of the most affordable property prices in Western Europe. On average, property prices remain more affordable than in Spain, France, Germany, and teh UK. When compared to France, Portugal is around 30 percent cheaper and 34 percent cheaper than Germany.

Lisbon has its own price range compared with the rest of the country, with Portugal’s real estate prices in the country’s capital having increased rapidly over the past five years. House prices in Portugal outside the prime locations of Lisbon, Porto, and the Algarve are often surprisingly affordable for foreign buyers.

Are Portugal house prices overvalued?

A recent European Commission report published in October 2025 has highlighted that house prices in Portugal are amongst the highest in Europe and over-valued by about 35 percent, with tourism and problems in the construction sector being labelled as the main factors contributing to this situation.

Despite this, Portugal remains one of the most affordable property markets in Western Europe for absolute property prices, with prices lower than those in the UK, France, Germany, and Spain.

For example, if a home in Portugal costs €300,000 , but should cost €22,000, based on local incomes, then this can be seen as over-valued. However, if the equivalent home in France costs €450,000, then Portugal can still be seen as an affordable country to buy property.

Goldcrest: How We Can Help You

Goldcrest is a buyer’s agent based in Lisbon, Porto, and the Algarve. Equipped with local knowledge, exclusive networks, and international experience, we provide expert, impartial advice on real estate investments and how to buy property in Portugal. From scouting out the perfect property to property acquisition and beyond, we have you covered throughout the process.