House buying in Portugal remains highly dynamic, further deepening the imbalance between strong demand and limited supply and making housing more expensive. This is happening in a market context where there are more incentives to purchase property (such as affordable interest rates, stable employment, foreign investors and support for young buyers) than to create residential stock, namely through the construction of new homes – incentives in this regard are included in the AD Government’s fiscal package, which has already been approved by Parliament but is not yet in force.
All this is reflected in the price of homes for sale in the country, which rose by 12.2% in February compared to the same month of 2025 (and by 2.5% on a quarterly basis). Buying a home in Portugal thus reached a median cost of 3,076 euros per square metre (m2) at the end of February, representing a new all-time high reached for the fourth consecutive month, as shown by the idealista price index.
House price increases felt in almost all major cities
The start of the year confirmed the upward trend. In January 2026, house prices for sale increased in 18 of the 19 district capitals (or autonomous region capitals) analysed. The highest annual increases in housing costs for purchase were recorded in Santarém (25.3%), Beja (22.8%) and Guarda (22.8%), followed by Aveiro (16.9%), Viana do Castelo (16.2%), Ponta Delgada (13.9%), Castelo Branco (13.9%) and Setúbal (13.5%).
Leiria (12.7%), Coimbra (12.5%), Faro (12.3%), Funchal (12.2%), Porto (11.5%), Braga (11.3%) and Bragança (11.3%) also posted significant house price increases over the last year. Lisbon (9.9%) and Portalegre (9.5%) recorded more moderate rises, while Évora saw an annual variation of 4.6%.
The only major city where a drop in house prices for sale was observed was Vila Real (-2%), according to idealista data.
Lisbon remains the most expensive city in which to buy a home, with a median price of 6,059 euros/m2, followed by Porto (4,060 euros/m2) and Funchal (3,959 euros/m2). In fourth and fifth place are Faro (3,447 euros/m2) and Setúbal (3,033 euros/m2). Next come Aveiro (2,894 euros/m2), Évora (2,479 euros/m2), Ponta Delgada (2,336 euros/m2), Coimbra (2,287 euros/m2), Viana do Castelo (2,247 euros/m2) and Braga (2,173 euros/m2).
With house prices below 2,000 euros/m2 are Leiria (1,830 euros/m2), Santarém (1,755 euros/m2), Vila Real (1,417 euros/m2), Beja (1,356 euros/m2), Bragança (1,155 euros/m2), Guarda (1,044 euros/m2), Castelo Branco (1,018 euros/m2) and, finally, Portalegre (989 euros/m2).
House prices for purchase in major cities
Median value in February 2026 (euros/m2)
Variation between February 2026 and the same month of the previous year (%)
Table with 3 columns and 19 rows. (column headers with buttons are sortable)
District capitals (or autonomous regions) | Price (euros/m2) | Annual variation (%)
Santarém | 1,755 | 25.3%
Beja | 1,356 | 22.8%
Guarda | 1,044 | 22.8%
Aveiro | 2,894 | 16.9%
Viana do Castelo | 2,247 | 16.2%
Castelo Branco | 1,018 | 13.9%
Ponta Delgada | 2,336 | 13.9%
Setúbal | 3,033 | 13.5%
Leiria | 1,830 | 12.7%
Coimbra | 2,287 | 12.5%
Faro | 3,447 | 12.3%
Funchal | 3,959 | 12.2%
Porto | 4,060 | 11.5%
Bragança | 1,155 | 11.3%
Braga | 2,173 | 11.3%
Lisbon | 6,059 | 9.9%
Portalegre | 989 | 9.5%
Évora | 2,479 | 4.6%
Vila Real | 1,417 | −2.0%
Source: idealista
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Housing costs grow by double digits in most districts and islands
Analysing the most recent idealista data, house prices for purchase increased in 25 of the 26 districts and islands analysed. The largest annual increase was recorded on the island of Porto Santo (32%), standing out very significantly. It is followed by Terceira island (25.4%), Setúbal (20.2%), Viseu (19.6%), São Miguel island (19.1%) and São Jorge island (18.8%).
With equally significant variations in the cost of homes for sale are also Santarém (17.6%), Madeira island (17.3%), Castelo Branco (16.7%), Faial island (15.8%), Viana do Castelo (15.6%), Aveiro (15.4%) and Leiria (15.1%). Portalegre (14.3%), Guarda (13.6%), Pico island (13.1%), Braga (12.6%), Beja (11.8%), Lisbon (11.6%), Faro (11.5%), Porto (10.4%) and Coimbra (9.9%) also recorded increases.
More moderate house price variations were observed in Évora (7.1%), Vila Real (5.8%) and Bragança (3%). The only case of stability was recorded on Santa Maria island, in the Azores, with an annual variation of 0.1%.
In the ranking of prices per square metre, Lisbon leads as the most expensive district in which to buy a home, at 4,653 euros/m2, followed by Faro (3,941 euros/m2), Madeira island (3,825 euros/m2), Porto Santo island (3,681 euros/m2) and Setúbal (3,261 euros/m2). Next come Porto (3,079 euros/m2) and São Miguel island (2,251 euros/m2).
With mid-range house prices for sale are: Aveiro (2,117 euros/m2), Leiria (1,992 euros/m2), Braga (1,896 euros/m2), Faial island (1,748 euros/m2), Terceira island (1,720 euros/m2), Viana do Castelo (1,719 euros/m2), Pico island (1,676 euros/m2), Coimbra (1,645 euros/m2), Évora (1,601 euros/m2) and Santarém (1,546 euros/m2).
At the lower end of the housing price table appear Santa Maria island (1,405 euros/m2), Beja (1,383 euros/m2), Viseu (1,381 euros/m2), São Jorge island (1,341 euros/m2), Vila Real (1,124 euros/m2), Castelo Branco (1,052 euros/m2), Portalegre (946 euros/m2), Bragança (930 euros/m2) and, finally, Guarda (819 euros/m2).
House prices for purchase in districts and islands
Median value in February 2026 (euros/m2)
Variation between February 2026 and the same month of the previous year (%)
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Table with 3 columns and 26 rows. Currently displaying rows 1 to 18. (column headers with buttons are sortable)
Districts and islands | Price (euros/m2) | Annual variation (%)
Porto Santo (Island) | 3,681 | 32.0%
Terceira (Island) | 1,720 | 25.4%
Setúbal | 3,261 | 20.2%
Viseu | 1,381 | 19.6%
São Miguel (Island) | 2,251 | 19.1%
São Jorge (Island) | 1,341 | 18.8%
Santarém | 1,546 | 17.6%
Madeira (Island) | 3,825 | 17.3%
Castelo Branco | 1,052 | 16.7%
Faial (Island) | 1,748 | 15.8%
Viana do Castelo | 1,719 | 15.6%
Aveiro | 2,117 | 15.4%
Leiria | 1,992 | 15.1%
Portalegre | 946 | 14.3%
Guarda | 819 | 13.6%
Pico (Island) | 1,676 | 13.1%
Braga | 1,896 | 12.6%
Beja | 1,383 | 11.8%
Source: idealista
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Homes for sale more expensive in all regions
Over the last 12 months, house prices for sale increased in all regions of the country. The largest annual rise was recorded in the Autonomous Region of the Azores (20.6%), followed by Alentejo (17.6%), the Autonomous Region of Madeira (17.5%), the Centre (14.5%) and the Lisbon Metropolitan Area (13.9%). The Algarve posted an annual increase of 11.5%, while the North recorded the most moderate rise (10%).
The Lisbon Metropolitan Area, with a median price of 4,350 euros/m2, remains the most expensive region in which to buy a home. It is followed by the Algarve (3,941 euros/m2) and the Autonomous Region of Madeira (3,821 euros/m2). Next come the North (2,523 euros/m2), Alentejo (1,974 euros/m2) and the Autonomous Region of the Azores (1,964 euros/m2). The Centre, with a median price of 1,766 euros/m2, remains the cheapest region in which to purchase housing.
House prices in Portugal