The cost of housing in Lisbon reached new highs this year, reflecting the constant appreciation of the real estate market in the Portuguese capital. Buying a house in Lisbon already involves an average investment of 650,000 euros, more than double the regional average, consolidating the city’s status as the most expensive district in the country. The price dynamics in the Central region shows significant increases, but it is in Lisbon that the values reach the highest level, as a result of strong demand, shortage of supply and demographic pressure.

In contrast to other districts of the center, where values remain between 250,000 and 315,000 euros, Lisbon stands out for the accelerated pace of annual appreciation and the stability of sales. Even when the national average rises to 426 thousand euros, Lisbon remains clearly above the middle line, confirming its primacy in the market.
Factors that influence the cost of a house in Lisbon
The cost of a house in Lisbon reflects several converging factors. The city is the main economic pole of the country, concentrates much of the most qualified jobs and numerous services. This centrality generates strong attractiveness, both for domestic residents and foreigners, which fuels competition for real estate and pushes up values. Another relevant factor is the growth of tourism, which has raised demand and accelerated urban renewal, adding pressure to traditional residential areas.

In addition, the scarcity of new housing in central areas and the gentrification of historic neighborhoods lead many buyers to look for alternatives in other districts, but without losing Lisbon’s prominence. Urban rehabilitation projects, although they increase the quality of housing stock, tend to direct the market for medium and high segments.
Comparison of the housing market
Comparing recent data, Coimbra and Leiria maintain average sales values between 250 thousand and 315 thousand euros, also witnessing a considerable appreciation, but far from the numbers of the capital. Santarém saw one of the highest growth rates, while Castelo Branco remains with a more accessible market, around 99 thousand euros. This contrast highlights the price gap between the coast and the interior, especially in destinations with strong urban attraction.



In the rental segment, Lisbon also leads by the value of rents, whose average amounts to 1,710 euros per month. Despite monthly fluctuations, this indicator reinforces the district’s position as the most expensive to live on, whether owned or leased. Other cities, such as Coimbra and Leiria, have average rents between 800 and 850 euros, while Castelo Branco remains at 550 euros.
Recent Evolution of Real Estate Prices
The valuation of real estate in Lisbon is supported by positive economic indicators, but also by conjunctural factors, such as the scarcity of available urban land and the pressure of foreign investment. Between August 2024 and August 2025, Lisbon experienced an average price increase of 23%, while the domestic market grew by 15%. This panorama motivates many buyers to consider alternatives within the Metropolitan Area, looking for areas such as Almada, Oeiras or Amadora, where average values tend to be more accessible.

Rent increases are continuing at the same pace, with the rental sector increasingly close to that of major European capitals, making access to housing a growing challenge for middle-income workers and households.
Perspectives for the Future of the House Cost in Lisbon
Forecasts point to continued pressure on home prices in Lisbon in the coming years, with limited supply and strong demand keeping values high. Public policies for the construction of affordable housing and encouragement to urban rehabilitation may relativize the trend, but the scenario of scarcity and valorization will hardly change soon. The cost of housing in Lisbon will thus be a central theme for those who plan to invest or reside in the city, being essential a careful analysis of market options and the evolution of interest rates, given the impact of these factors on the family budget.