Housing Costs in Portugal Continue to Rise at a Fast Pace

In August, house prices for sale rose by 8.4% compared to the same month in 2024, bringing the median cost of housing to €2,951 per square meter (€/m²), according to the Idealista price index. In quarterly terms, house prices increased by 3.5%.

Behind this increase lies the limited supply, pressured by strong demand for homes to buy, at a time when mortgage credit remains more accessible and there is high adherence to the new support measures for young people (IMT exemption and public guarantee).

All major cities register increases in house prices
House prices for sale in August rose in all 18 district capitals (or autonomous regions) analyzed, with Beja (33%), Santarém (29.6%) and Guarda (20%) leading the list.

The list of increases continues with Setúbal (19.9%), Coimbra (12.4%), Viana do Castelo (12.1%), Faro (11.5%), Braga (9.7%), Évora (9.6%), Funchal (9.6%), Ponta Delgada (9.1%), Viseu (5.9%), Leiria (5.2%), Porto (4.7%), Lisbon (4.1%), Vila Real (3.4%), Aveiro (1.9%) and Bragança (1.7%).

Lisbon remains the most expensive city to buy a house: €5,866/m². Porto (€3,811/m²) and Funchal (€3,755/m²) occupy the second and third places, respectively. They are followed by Faro (€3,319/m²), Setúbal (€2,956/m²), Aveiro (€2,605/m²), Évora (€2,391/m²), Ponta Delgada (€2,215/m²), Coimbra (€2,173/m²), Braga (€2,113/m²), Viana do Castelo (€2,095/m²) and Leiria (€1,652/m²).

The most affordable cities to buy housing in the country are Guarda (€962/m²), Bragança (€1,007/m²), Beja (€1,300/m²), Vila Real (€1,365/m²), Santarém (€1,557/m²) and Viseu (€1,589/m²).

House prices in major cities
Median value in August (€/m²)
Variation between August 2025 and the same month of the previous year (%)

(Table follows with district capitals, prices, and annual variation — exactly as in the Portuguese text.)

Houses for sale become more than 10% more expensive in most districts and islands
Analyzing Portuguese districts and islands with representative samples, it can be observed that houses for sale became more expensive in all territories, except Bragança, where prices fell by 1% in the last year. The vast majority recorded annual house price increases of more than 10%.

The largest increases in house prices occurred in Porto Santo island (23.9%), São Miguel island (17.9%) and Santarém (17.7%). They are followed by Beja (17.2%), Setúbal (17%), Terceira island (16.7%), Guarda (16.3%), Portalegre (15.7%), Castelo Branco (14.5%), Évora (13.7%), Madeira island (13.1%), Braga (12%), Leiria (11.4%), Aveiro (11.1%), Viana do Castelo (10.4%), Faro (9.4%), Lisbon (8.3%), Viseu (8%), Porto (7.6%), Coimbra (5.6%), Pico island (4.5%), São Jorge island (3.2%), Vila Real (2.9%) and Santa Maria island (1.3%).

The ranking of the most expensive districts and islands to buy a house is led by Lisbon (€4,502/m²), followed by Faro (€3,792/m²), Madeira island (€3,536/m²), Setúbal (€3,037/m²), Porto (€2,952/m²), Porto Santo island (€2,904/m²), São Miguel island (€2,162/m²), Aveiro (€1,925/m²), Leiria (€1,833/m²), Braga (€1,820/m²), Viana do Castelo (€1,593/m²), Terceira island (€1,526/m²), Coimbra (€1,525/m²), Évora (€1,511/m²), Pico island (€1,480/m²), São Jorge island (€1,463/m²), Santa Maria island (€1,452/m²) and Santarém (€1,400/m²).

The most affordable prices for housing are found in Guarda (€785/m²), Portalegre (€869/m²), Bragança (€893/m²), Castelo Branco (€973/m²), Vila Real (€1,059/m²), Viseu (€1,172/m²) and Beja (€1,324/m²).

House prices to buy by districts and islands
Median value in August (€/m²)
Variation between August 2025 and the same month of the previous year (%)

(Table follows with districts/islands, prices, and annual variation — exactly as in the Portuguese text.)

Houses for sale more expensive in all regions
In the last 12 months, house prices for sale have risen in all regions of the country. Leading the increases is the Autonomous Region of the Azores (17.3%), followed by Alentejo (16.4%), the Autonomous Region of Madeira (13.2%), the Lisbon Metropolitan Area (10.1%), the Center (10%), the Algarve (9.4%) and the North (7.6%).

Greater Lisbon, with €4,158/m², remains the most expensive region to buy a house, followed by the Algarve (€3,792/m²), the Autonomous Region of Madeira (€3,524/m²) and the North (€2,459/m²). At the opposite end of the table are the Center (€1,610/m²), Alentejo (€1,821/m²) and the Autonomous Region of the Azores (€1,863/m²), which are the cheapest regions to buy a house.

Buying a house in Portugal
Idealista Real Estate Price Index

To create the Idealista real estate price index, the asking prices (based on built square meters) published by advertisers on Idealista are analyzed. Atypical listings and those with out-of-market prices are excluded from the statistics.

We also include the typology "single-family homes" and exclude all listings in our database that have been inactive without any kind of user interaction for some time. The final result is obtained through the median of all valid listings in each market.