Portugal’s housing market kept getting more expensive in the second quarter even as the number of homes sold fell, underscoring a supply squeeze that is widening affordability pressures for buyers and supporting valuations for owners and developers.
Portugal home prices rise 18.4% as sales fall
The National Statistics Institute said the median house price rose 18.4% from a year earlier to 2,445 euros per square meter, or 4.6% from the first quarter, while transactions dropped 9% to 37,854. The latest reading shows demand remains resilient enough to push prices higher despite a cooling in turnover, a combination that typically points to tight inventory rather than a broad-based slowdown.
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The gains were strongest in several mid-sized and coastal municipalities, with Loures and Matosinhos posting the sharpest acceleration among cities with more than 100,000 residents. Lisbon remained the country’s priciest major market at 5,299 euros per square meter, followed by Cascais at 5,200 euros and Oeiras at 4,704 euros, keeping the main urban corridor well above the national average.
Foreign buyers also continued to pay a premium. Homes bought by households with fiscal residence abroad averaged 3,182 euros per square meter, up 15.7% from a year earlier, versus 2,421 euros for domestic buyers, up 18.6%. Lisbon again stood out, with median prices of 6,588 euros per square meter for foreign buyers and 5,143 euros for domestic buyers between July 2025 and June 2026.
For investors, the data point to a market where pricing power remains intact, even as liquidity thins. That is supportive for listed homebuilders, landlords and developers with exposure to Portugal, but it also raises the odds of policy scrutiny if affordability worsens further in the larger cities.
| Entity | Gains | Losses |
|---|---|---|
| Homeowners | ▲Higher property values | ▼Reduced affordability for buyers |
| Buyers | ▲— | ▼Rising entry costs |
| Developers/Landlords | ▲Stronger pricing power | ▼Slower transaction volumes |
| Portuguese cities with tight supply | ▲Higher valuations | ▼Greater affordability strain |
