What Are the Portugal House Prices in 2026?

How much does property cost in Portugal in 2026?

Wondering how much does a house cost in Portugal? As of February 2026, the average house price in Portugal is €3,076 per square meter, which marks a 1.0 percent increase from January 2026.

House prices in Portugal show an upward trend, going up 2.5 percent since November 2025 and hitting staggering +12 percent year-on-year growth from February 2026 to 2026. According to Statistics Portugal (INE), Q3 2025 saw record-high prices, up 17.7 percent year-on-year from Q3 2024.

Here is a quick look at the latest statistics on the average home price in Portugal, based on INE transactional data:

• The number of family housing transactions in Portugal increased by 4.0 percent compared to Q3 2024.
• In Q3 2025, Portugal housing prices increased in 12 of the 24 municipalities with more than 100,000 inhabitants. The Coimbra real estate market (+14.8 percentage points) and Setúbal (+11.4 percentage points) recorded the largest increases.
• The largest decreases in year-on-year growth rates occurred in Vila Nova de Gaia (-9.2 percentage points) and Santa Maria da Feira (-8.6 percentage points).
• The Lisbon and Porto real estate markets recorded increases of 3.9 percentage points and 6.2 percentage points, respectively, in year-on-year growth rates from the 2nd to the 3rd quarter of 2025.

Where are house prices rising the most in Portugal?

The Portugal real estate market has a thriving luxury market across the entire country. The most sought-after areas are often coastal regions and central locations where you can fetch a house that costs more than the national average.

In Q3 2025, all 26 smaller regions (NUTS 3 areas) saw house prices rise in Portugal. Terras de Trás-os-Montes had the highest year-on-year growth rate (+34.3 percent).

Many other regions in Portugal experienced a growth above that country’s average, such as the Setúbal Peninsula (+25.5 percent), Greater Lisbon (+17.6 percent), Alentejo Litoral (+16.8 percent), and the Algarve (+16.6 percent).

According to Q3 2025 data from Confidencial Imobilario, the Civil Parishes of Cascais and Estoril have some of the most expensive house prices in Portugal, at an average of €8,559 per square meter.

Average House Prices in Portugal by City

Portugal has a diverse housing market across 308 municipalities, 278 of which are on the mainland, while the remaining 19 are in the Azores and 11 in the Autonomous Region of Madeira. The cost of buying a home in Portugal is different for every region, city, or town.

According to the World Population Review, Portugal has two cities with more than a million people – Lisbon and Porto. These major cities have the highest average house prices in Portugal due to their business opportunities, start-up ecosystem, rental demand, employment concentration, and investment demand from both local and international buyers.

The Setúbal real estate market attracts buyers who prefer to be close to Lisbon, while paying slightly lower housing prices. Although Setúbal City is a prime location, it offers proximity to the sea at more affordable rates than many Western European countries.

The Algarve and Madeira real estate markets, especially in cities such as Faro, Lagos, and Funchal, are a popular choice for lifestyle buyers. Not only are these cities commercial hubs, but their stunning coastlines create the strongest dynamics for short-term rentals, driven by booming tourism.

However, the supply can’t keep up with the demand, which means the average cost of a house in Portugal will only keep increasing. The limited land available, combined with higher construction costs, will continue to put pressure on prices across major cities in Portugal.

The table below covers the average Portugal house prices in popular cities:

Source: Confidencial Imobilario

Average Portugal house prices by region

Buying property in Portugal is more affordable than in some Western European countries, such as France, the Netherlands, and the United Kingdom. However, the Portuguese housing market has experienced faster value growth than other EU countries.

While the median asking price for a house in Portugal is €3,076 per square meter as of February 2026, costs for luxury properties are significantly higher. Prices for Portugal luxury real estate are well above €1 million.

The table below covers the average house price in Portugal for the country’s main regions.

Source: Confidencial Imobilario

House prices in Lisbon

The Portuguese capital offers an average asking price of €7,086 per square meter. Across the wider metro area, the average asking price is €5,045 per square meter. On the whole, buying property in Lisbon remains relatively affordable compared with other capital cities in Western Europe.

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.

Lisbon real estate investment attracts buyers who prefer business opportunities, high rental yields of 5.8 percent, and strong capital appreciation. However, the house costs in Portugal vary by neighborhood.

Source: Confidencial Imobilario

House prices in Cascais

Located just a 30-minute drive away, Cascais is a prime location for luxury living on Portugal’s stunning coastline. Cascais is famous for its selection of world-class golf courses, beautiful marinas, and an atmosphere that effortlessly blends refined living with relaxation.

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 €4,114 per square meter, while areas like Alcabideche offer homes for €5,717 per square meter.

If you’re looking for pricier investments, consider the neighborhoods of Carcavelos and Parede, where properties start at €7,177 per square meter, or Cascais and Estoril, where you can find your dream home for €8,559 per square meter.

If you are considering Cascais for a holiday home or permanent residence, 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

Buying property in the Algarve, Portugal, is a great choice for those who want a prime coastal market, golden beaches, and access to world-class golf courses.

In coveted areas like Faro, Albufeira, and Lagos, average real estate prices in Portugal per square meter reflect the region’s desirability, with average asking prices of €3,988/m2, €4,349/m2, and €5,474/m2, respectively.

The Algarve is one of the best regions to find villas in Portugal and vacation homes with swimming pools.

If you want more affordable Portugal homes, the Eastern Algarve is largely a cheaper alternative than the Central Algarve. For example, Alcoutim homes for sale in Portugal can cost €1,608 per square meter.

House prices in Northern Portugal

In Northern Portugal, the variety of houses is as diverse as the region itself. Porto, the second largest city, where homes are priced at €4,895 per square meter. However, in the Porto wider metropolitan area, costs can reach €4,052 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 €2,953 per square meter. Matosinhos, with its stunning coastal vistas and bustling life in the city center, is the middle ground in the North of Portugal, where the average Portugal house cost is €4,171 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 €3,868 per square meter.

The North of Portugal is amongst the most affordable rural regions, with average house prices 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 €8,566 per square meter, while Comporta, situated in the municipality of Alcácer do Sal, offers properties priced at €4,499 per square meter.

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 with swimming pools often go far beyond €1 million.

Meanwhile, you will discover more affordable options in the Alentejo region, where the average property price starts from €3,958 per square meter.

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.

Madeira, situated off the coast of northern Africa, offers an average asking price of €3,825 per square meter. Buying property in Madeira, especially in sought-after destinations like Caleta and the Funchal city center, can offer high rental yields and strong returns on investment. In Funchal, Madeira’s capital, a house costs €3,959 per square meter.

Meanwhile, the Azores, located northwest of Madeira, captivate with their unique landscapes, vibrant culinary scene, and lush green hills. On São Miguel, the largest and most populated island, the average cost of a house in Portugal can reach €2,251 per square meter.

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 €3,377 per square meter, while Figueira da Foz in the Coimbra district offers seaside living at €2,281 per square meter.

Caldas da Rainha, a charming city known for its healing spa waters, showcases properties priced from €2,401 per square meter, blending historical charm with modern comfort. Elsewhere, areas like Nazaré and Óbidos enchant with their unique attractions, offering properties at €3,588 and €3,935 per square meter, respectively.

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.

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 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 overvalued 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.

Goldcrest: How We Can Help You 

Goldcrest is a buyer’s agent that is based in Lisbon. We provide expert, impartial advice on real estate investments and how to buy property in Portugal. From scouting out the perfect property through to property acquisition, we have you covered throughout the process.

If you are looking to purchase property in Portugal, don’t hesitate to get in touch. Our team of skilled experts is available to solve all your real estate doubts, helping you with the property search and offering insightful expertise and strategic advice.

Why choose Goldcrest?

• Local knowledge: With offices located across Portugal, our presence nationwide allows us to assist you personally across the country.
• Independent service: As an independent buying agent, we do not represent any development or project. Our service is entirely tailored toward each individual client, providing you with everything you need to secure the perfect property at the best possible price. As an impartial advisor on the market, we work solely on behalf of our client and provide a service tailored to your needs and requirements.
• Streamlined process: Our real estate agents speak English and Portuguese, and our service is completely focused on providing you with a hassle-free buying experience, saving you time.
• Experienced team: Our expert real estate team has a vast local knowledge of the Portuguese property market. We have cutting-edge technology and metasearch tools at your disposal to provide full market coverage, ensuring the best investment choices and negotiated prices.
• Network of partners: We have a close network of partners, including lawyers, property management services, builders, architects, designers, and landscape gardeners, again saving you time and hassle by providing you with trusted experts in their field of work.