Access to housing in Portugal is becoming increasingly difficult as house prices rise much faster than salaries. After all, there are fewer and fewer homes on the market that families can afford without exceeding their effort thresholds. Proof of this is that the supply of homes for sale up to 200,000 euros has fallen by 73% in the country over the last five years, as revealed by data from idealista. Conversely, increasingly expensive homes, costing more than half a million euros, are appearing on the market.

The Portuguese housing landscape is not encouraging: the supply of homes that are more affordable for families’ budgets has fallen sharply, giving way to much more expensive ones. This is exactly what the idealista/data figures show: the supply of homes for sale up to 200,000 euros dropped 73% between the third quarter of 2020 and the same period in 2025. Even in the next price bracket — between 200,000 and 300,000 euros — the stock available to buy fell 32%.

On the other hand, more expensive homes have been appearing on the Portuguese residential market. The number of homes listed for prices between 400,000 and 500,000 euros rose 37% in five years. And homes for sale costing more than 500,000 euros grew 42%. High construction costs, delays in licensing, and heavy taxation may help explain this trend, ultimately pushing prices upward nationwide.

Supply of homes for sale in Portugal: evolution over 5 years
Evolution of housing supply by price brackets between Q3 2025 and Q3 2020

Up to 200,000 euros
−73%
200,000 to 300,000 euros
−32%
300,000 to 400,000 euros
4%
400,000 to 500,000 euros
37%
More than 500,000 euros
42%

Where has the supply of affordable homes fallen the most?
Looking closely at the country, at the level of district capitals or autonomous regions, almost all major cities today have fewer homes for sale up to 200,000 euros than five years ago. The only exception is Vila Real, where the supply of more affordable housing grew 16%.

In fact, the supply of homes up to 200,000 euros fell to almost half in several Portuguese cities during this period, such as Funchal, Faro, Lisbon, Ponta Delgada, Porto, Setúbal, Aveiro, and Braga. The truth is that these cheaper homes tend to disappear quickly from the market, as they are more aligned with families’ incomes. Additionally, developers and builders have found it difficult to bring homes to the market at low prices due to high construction costs, taxes, and other expenses.

In the next price bracket — between 200,000 and 300,000 euros — a drop in supply was observed in 12 major cities between the summer of 2020 and the summer of 2025. The sharpest reductions occurred in Funchal, Faro, and Lisbon (all above 75%), while in Porto the fall was 44%. On the other hand, an increase in the number of homes for sale in this price range is visible in eight cities in the interior of the country and in the Alentejo region, with Beja doubling its supply.

Evolution of the supply of homes for sale in major cities
Variation in housing supply by price range between Q3 2025 and Q3 2020

(Table translated as written, keeping the order and values)

District capitals/autonomous regions | Up to 200,000 € | 200,000–300,000 € | 300,000–400,000 € | 400,000–500,000 € | More than 500,000 €
Funchal | −97% | −91% | −52% | 21% | 179%
Faro | −92% | −82% | −69% | −23% | 52%
Lisbon | −91% | −78% | −40% | −25% | −21%
Ponta Delgada | −90% | −49% | 49% | 333% | 261%
Porto | −89% | −44% | 7% | 27% | −2%
Setúbal | −89% | −4% | −51% | 115% | 272%
Aveiro | −88% | −46% | 14% | 227% | 335%
Braga | −84% | −27% | 113% | 226% | 677%
Coimbra | −75% | −56% | −51% | 18% | 1%
Leiria | −75% | −9% | 306% | 449% | 304%
Évora | −74% | 80% | 86% | 280% | 144%
Viana do Castelo | −70% | −9% | 90% | 65% | 298%
Beja | −69% | 100% | −6% | 11% | 214%
Viseu | −68% | −52% | 84% | 302% | 344%
Santarém | −67% | 44% | 47% | 79% | 325%
Portalegre | −35% | 76% | 60% | −50% | 71%
Bragança | −27% | 33% | 230% | 100% | 78%
Castelo Branco | −17% | 87% | 280% | 357% | 833%
Guarda | −16% | 56% | 220% | 600% | -
Vila Real | 16% | 41% | 162% | 444% | 210%

This reality contrasts with a widespread increase in homes for sale at higher prices, between 400,000 and 500,000 euros. This supply more than tripled over the last five years in nine major cities in the country, such as Guarda, Leiria, Vila Real, Castelo Branco, Ponta Delgada, Viseu, Évora, Aveiro, and Braga, where it was once very scarce. It also doubled in Setúbal and Santarém. In Faro, Lisbon, and Portalegre, however, the supply fell.

The growth in the supply of homes for sale above 500,000 euros is even more significant, covering practically all cities and registering major increases — something that can be explained by the very limited supply of homes in this high price bracket five years ago. Lisbon and Porto are the only exceptions: there are fewer homes for sale above half a million euros than there were five years ago. After all, there is greater demand pressure for these types of properties in the country’s two largest cities, and the supply was already high in 2020 (representing 45.5% of Lisbon’s stock and 23.5% of Porto’s).

Affordable homes vs. premium homes: where is the supply concentrated?
After the sharp declines observed over the last five years, the supply of homes for sale up to 200,000 euros became very scarce in major urban centers in the summer of 2025. In Funchal, it represented just 1% of the local stock; in Lisbon, 2%; in Faro, 3%; and in Porto, 5%. Note that in the summer of 2020, affordable homes accounted for more than 25% of the stock in both Funchal and Porto, and more than 10% in Lisbon and Faro.

Although the drop in lower-priced housing was widespread among district capitals/autonomous regions (with the exception of Vila Real), several cities in the interior still have a strong supply. In Guarda, Portalegre, Castelo Branco, Beja, and Bragança, homes for sale up to 200,000 euros represent more than half of the respective municipal stocks, according to the same idealista/data figures.

Supply of homes for sale in major cities
Data from Q3 2025
Distribution of housing supply by price range in each city

Up to 200,000 euros — 200,000 to 300,000 euros — 300,000 to 400,000 euros — 400,000 to 500,000 euros — More than 500,000 euros
(Chart categories translated directly)

Guarda
Portalegre
Castelo Branco
Beja
Bragança
Vila Real
Santarém
Viseu
Coimbra
Évora
Viana do Castelo
Leiria
Braga
Ponta Delgada
Setúbal
Aveiro
Porto
Faro
Lisbon
Funchal

Jumping to the highest price bracket — homes for sale above 500,000 euros — these residential properties represent more than half of the local supply in Funchal (66%), Faro (63%), and Lisbon (63%). In Porto, one in every three homes for sale costs more than half a million euros. And where once premium housing supply was scarce, it now carries more weight. Aveiro is a clear example, increasing from 4.4% in the summer of 2020 to around 25% in the summer of 2025.

Despite the sharp increases in supply over the last five years in major cities in the interior of the country, the share of homes above 500,000 euros remains below 10% in Beja, Portalegre, Bragança, Guarda, and Castelo Branco, according to the same data.