Source: Adobe Stock Author: Redaction Housing sales continue downward trend The Portuguese property market started 2026 with signs of cooling. After a period marked by record highs in both prices and activity, housing sales fell for the second consecutive quarter. Between January and March, 37,745 homes were transacted, 8.7% fewer than in the same period last year. Data released by the National Statistics Institute (INE) also shows that the decline was more pronounced in new-build homes. New home sales fell by 11.6% to 7,389 units, while existing homes recorded a drop of 8%, totalling 30,356 transactions. Despite the reduction in the number of deals, the total value of transactions reached €9.9 billion, up 3.2% year-on-year, reflecting the continued rise in prices in the residential market. House prices continue to rise, but at a slower pace House prices maintained strong growth in the first quarter of 2026, although with signs of moderation. The House Price Index increased by 17.8% compared with the same period in 2025, a rate 1.1 percentage points lower than in the previous quarter. This was the first slowdown in prices since the second quarter of 2024. Existing homes continued to lead growth, with a 19.7% increase, while new homes rose by 12.6%. On a quarterly basis, house prices grew by 3.8%, below the 4% recorded at the end of 2025. Used homes increased by 4.2%, while new builds rose by 2.7%, confirming that demand pressure remains stronger in this segment. Households dominate purchases and non-residents decline Households remained the main drivers of the housing market in Portugal. In the first quarter of the year, they purchased 32,828 homes, equivalent to 87% of all transactions. Investment by this segment reached €8.6 billion, representing 86.4% of total value. Buyers with tax residence outside Portugal reduced their presence in the market. Between January and March, 1,770 homes were purchased by non-residents, a year-on-year decrease of 15.6%. At regional level, the number of transactions fell across all areas of the country, with the sharpest declines recorded in Madeira, the Azores and the Algarve. However, several regions still recorded increases in transaction value, showing that rising property prices continue to support the market despite lower activity. The INE data therefore points to a less dynamic housing market in terms of sales volume, but one still characterised by high house prices and significant residential property appreciation.
Source: Adobe Stock Author: Redaction What are homes with flexible rooms? Housing needs are changing, and homes are evolving alongside them. With the rise of remote working and the search for more practical solutions, homes with flexible rooms are becoming increasingly prominent in the property market. These properties include spaces designed to serve different functions throughout the day. Rather than fixed and less versatile areas, homes with flexible rooms focus on adaptable environments capable of responding to residents varying routines. A home office can be transformed into a guest bedroom, while a living room can incorporate a dining or leisure area. The aim is to maximise every square metre of the property without compromising comfort or aesthetics. How do flexible rooms work in practice? The concept of homes with flexible rooms is based on the use of smart organisation solutions and multifunctional furniture. Sofa beds, built-in beds, fold-away tables and folding desks are among the most common options. Many of these homes also feature sliding panels that allow spaces to be opened or closed according to the needs of the moment. In this way, a room can take on different functions throughout the day without requiring renovations or permanent alterations. Technology also plays an important role. Some developments incorporate adjustable lighting systems that help create distinct environments for working, relaxing or entertaining guests. In urban apartments, it is increasingly common to find open-plan kitchens integrated into the living room and even balconies designed to function as an extension of the home office. Advantages and where to find homes with flexible rooms The main advantage of homes with flexible rooms is the optimisation of available space. This solution makes it possible to create more organised, functional and visually balanced environments, particularly in smaller apartments. Among the main benefits are better use of living space, ease of adaptation to daily routines and the possibility of reorganising the home in just a few minutes. In addition, these features can contribute to higher property values, as buyers are increasingly looking for versatile homes. Homes with flexible rooms can also create new opportunities for those who work from home. Depending on the propertys layout, it is possible to create areas dedicated to small businesses, specialised services or professional activities without compromising family life. With the evolution of housing trends, all indications suggest that this concept will continue to grow in the coming years. For those looking for a home prepared to meet different needs, it is worth exploring the options available in Portugal. On the SUPERCASA property portal, it is possible to find a selection of modern properties in different locations, property types and comfort levels, including options that focus on flexible living spaces. Visit the portal now and discover your next home!
Source: Adobe Stock Author: Redaction Suspension of capital gains deadlines The rules on capital gains from the sale of a main and permanent residence now include new protection for taxpayers. Whenever the purchase of a new home is blocked by a legal action or by an issue not attributable to the buyer, the legal deadlines for reinvestment may be suspended. Until now, the capital gains regime required owners to reinvest the proceeds from the sale of a home into a new property within strict time limits. The reinvestment had to take place up to 24 months before the sale or up to 36 months after, otherwise the taxpayer would lose the tax benefit associated with capital gains. With the new legislative change, included in the housing tax package, the deadlines remain, but they stop running when external obstacles delay the acquisition of the new housing. This measure aims to avoid tax penalties in situations where the taxpayer has no direct responsibility. New law protects housing purchase The suspension of capital gains deadlines applies mainly to housing purchase processes that become involved in legal disputes, court delays or administrative problems that prevent the completion of the deed. The new rule strengthens protection in the housing market, especially for families that depend on the sale of their current home to finance a new main and permanent residence. This prevents court delays or contractual disputes from putting the capital gains tax exemption at risk. Tax specialists consider that this change provides greater legal certainty for taxpayers and reduces situations of tax unfairness linked to delays outside the buyer’s control. Reinvestment remains mandatory Despite the suspension of deadlines, the capital gains regime still requires the reinvestment of the amount obtained from the sale of the property. The objective remains to encourage home ownership and promote housing mobility for families. The legislation states that only supervening situations not attributable to the taxpayer may justify the suspension of the capital gains deadline. Each case may require documentary evidence or judicial validation. With this change, the Government seeks to adapt the capital gains regime to the reality of the housing market, characterised by longer processes, increased litigation and difficulties in completing housing transactions. Fiscal impact on the housing market The change to capital gains rules may have a significant impact on the Portuguese housing market, particularly in transactions involving the purchase and sale of a main and permanent residence. Many taxpayers previously avoided new transactions due to the risk of losing tax benefits in case of delays. By allowing the suspension of capital gains deadlines, the new law may increase buyer confidence and reduce pressure associated with reinvestment time limits. In a context of greater complexity in property transactions, this measure acts as an additional tax protection mechanism for families facing unexpected obstacles when purchasing a new home.
Source: Adobe Stock Author: Redaction IRN speeds up land registry certificate issuance IRN has launched a new digital service that allows the immediate issuance of online land registry certificates. The new platform simplifies access to the land registry certificate, an essential document for buying, selling or financing a property. With this system, the request can be completed entirely online, eliminating manual steps and reducing waiting times. The automatic issuance covers urban, rural and mixed properties. Users can search for properties using the land registry description number or tax article number, completing the process within minutes after payment validation. According to IRN, the automation aims to make registration services faster, more efficient and more accessible, improving the experience for citizens and reducing bureaucracy in access to land registry certificates. Land registry certificate is essential when buying a home The land registry certificate gathers updated legal information about a property, including identification of the owner, mortgages, seizures or other associated charges. The document is mandatory in operations such as buying and selling homes, mortgage housing credit contracts and other acts related to properties. IRN’s new service allows multiple properties to be added in the same request and payments to be made by ATM reference or credit card. After confirmation, the access code to the land registry certificate becomes available almost immediately in the user’s reserved area. The online request can be made through authentication with the Citizen Card, Digital Mobile Key or professional certificates for lawyers, notaries and solicitors. This functionality automatically fills in the applicant’s identification data, further speeding up the process. Reserved area simplifies request management IRN’s new digital platform includes a reserved area where users can track requests, check certificate statuses and access consultation codes during the document’s validity period, which is six months. Through the access code, it is possible to consult updated information about the property, including active registrations and pending requests. The system also allows land registry certificates to be renewed during the final month of validity, avoiding the need for entirely new requests. With this service, IRN strengthens the digitalisation of registrations and simplifies access to essential documents in the property market and housing-related processes. Digitalisation reduces bureaucracy in registrations IRN’s investment in service digitalisation aims to reduce response times and make procedures simpler for citizens and professionals in the property sector. The immediate issuance of the land registry certificate represents another step in the modernisation of public services linked to properties. With the new digital portal, IRN aims to facilitate operations related to housing, financing and property transfers, allowing faster and more efficient access to land registry information in Portugal.
Source: Adobe Stock Author: Redaction Sale of property without heirs’ agreement The Government presented a bill to the Assembly of the Republic aimed at facilitating the sale of properties in undivided inheritances, allowing any heir to proceed with the sale of the home when there is no consensus. The measure also applies to widows under community property regimes and executors, and allows the forced sale of properties two years after the opening of the inheritance. If an inheritance inventory process is underway, this deadline is no longer required, speeding up the resolution of undivided inheritances. Rules and exceptions in inheritance sales The proposal establishes the creation of an executor with expanded powers in managing the inheritance, including administration and distribution duties, taking on a role similar to the head of the estate. The aim is to streamline the management of undivided inheritances and reduce deadlock among heirs. Other entities may intervene without forcing the sale, such as the Public Prosecutor’s Office and creditors. However, there are exceptions: it is not possible to proceed with the sale of properties in undivided inheritances when they are the family’s permanent home, seized assets, or insolvency cases. Sales process and property valuation The process for selling properties in undivided inheritances will be divided into two stages. First, the property is valued to establish a reference price. Then, the sale proceeds if there is no agreement among heirs. If there is no consensus on the price, the court sets the value based on independent assessments and the property may be sold through electronic auction. The proposal also includes the right of redemption, allowing one heir to keep the property by paying the sale price, keeping it within the family.
Source: Adobe Stock Author: Redaction Sale of home before 1 year subject to tax Sale of home before completing 12 months as primary residence may result in capital gains tax in IRS. The Tax Authority (AT) is applying stricter rules, requiring compliance with the minimum period even in relevant family situations. This interpretation limits access to the capital gains tax exemption on the sale of home, making it more difficult to benefit from the tax regime in short-term transactions. Household increase does not guarantee exemption Sale of home before one year, motivated by the birth of a child, does not always avoid capital gains tax. The AT considers this situation only exceptional if it occurs after the acquisition and use of the property as primary residence. If the child is born before the purchase, it is no longer considered an unforeseen event. Thus, the sale of home in these conditions does not benefit from tax exclusion and remains subject to IRS. Minimum 12-month period is mandatory With recent legal changes, the minimum period to avoid capital gains tax on the sale of home has been reduced from 24 to 12 months. However, this period remains mandatory to access the reinvestment regime. The AT clarifies that the period only starts counting from the date of property acquisition. In other words, the sale of home before completing this period does not meet the requirements, even if the taxpayer already lived in the property previously. Reinvestment rules remain strict To avoid paying capital gains tax on the sale of home, several conditions must be met. The property must be a primary residence for at least 12 months, and the sale value must be reinvested in another home with the same purpose. In addition, the sale of home requires reinvestment within legal deadlines and that intention must be declared. Otherwise, gains are subject to IRS. This interpretation reinforces that the sale of home before the deadline will only be accepted in truly unexpected situations occurring after the property purchase.
Source: Adobe Stock Author: Redaction House sales in Portugal decline at the end of 2025 House sales in Portugal recorded a 3.6% decrease in the last quarter of 2025 compared with the same period in 2024. This development places the country among the four EU Member States where house sales declined at the end of the year. Despite this slowdown, the Portuguese real estate market maintained a high level of activity throughout 2025. According to Eurostat, this drop in house sales contrasts with the general growth trend seen in most European countries. House sales trends in the European Union Across the European Union, house sales increased in most countries in 2025. The strongest growth was recorded in Slovenia, Lithuania and Belgium, reflecting a widespread dynamism in the European real estate sector. In Portugal, despite the quarterly decline, house sales ended the year with annual growth of 10.5%, showing that the real estate market maintained an overall positive trend. According to the National Institute of Statistics, around 170,000 homes were transacted in 2025, the highest figure in the historical series. In this context, house sales were accompanied by a strong rise in prices, with an annual increase of 17.6%, driven by high demand and limited housing supply. House sales and price dynamics in Europe The evolution of house sales in the European Union also shows differences between countries. While some recorded significant increases, others posted slight declines, such as Bulgaria and Ireland. In general terms, house sales tend to be more concentrated in the last quarter of the year in most countries, including Portugal, while the beginning of the year usually records fewer transactions. This seasonality helps explain quarterly variations in the European housing market. Another relevant factor is the difference between new and used properties. In several EU countries, including Portugal, used homes continue to account for the majority of transactions, meaning that variations in this segment have a greater impact on overall housing market performance.
Source: Adobe Stock Author: Redaction Growth in new construction In recent years, new housing construction has seen significant growth, with more and more units being placed on the market. Despite the increased supply, the country continues to face an affordable housing deficit, reflecting demand that clearly exceeds availability. New construction plays an important role in the market but at prices that many families still struggle to afford. New homes more expensive than existing ones New homes tend to have higher prices than existing homes due to construction costs, land, licensing, and taxes. This difference makes access more difficult, especially for young people and middle-income families. Still, the market shows dynamism, with new units being quickly absorbed, which keeps pressure on prices. Geographical concentration and types of housing New homes are mainly concentrated in the North, Centre, and Greater Lisbon regions, while autonomous regions and inland areas have lower supply. Most units correspond to medium-sized types, with two or three bedrooms, reflecting the predominant demand for affordable family housing. Incentives and future outlook The Government has been implementing measures to encourage new construction and facilitate access to housing, including tax benefits and faster licensing. Although some developers are waiting for legal clarifications before launching new projects, construction is expected to continue growing, helping to relieve price pressure and meet the country’s housing needs.
Source: Adobe Stock Author: Redaction Housing prices surge in the capital Housing prices in Lisbon recorded strong growth in 2025, with an annual increase of 18.2%. This is the largest rise since 2017, when the capital’s residential market registered an increase of 20.9%. This growth represents a reversal of the trend of recent years, which had been marked by a gradual slowdown in price appreciation. After the post-pandemic recovery, when prices moved from a 3.0% increase in 2020 to 11.7% in 2021, the market began to slow down. In 2024, the annual rise in housing prices in Lisbon had been 5.5%, far below the level recorded in the past year. Average price surpasses €5,000 per square metre The appreciation of housing in Lisbon was also directly reflected in transaction values. For the first time, the average sale price in the city exceeded the threshold of €5,000 per square metre, reaching €5,207/m². In several parishes of the capital, housing prices in Lisbon significantly exceed this average value. Santo António leads with around €6,646/m², followed by Avenidas Novas with €6,588/m² and Campo de Ourique with €6,021/m². At the opposite end, Santa Clara remains the most affordable parish in the capital to buy a home, with an average price of €3,882/m², being the only area of the city with values below €4,000/m². Number of housing sales increases in 2025 The dynamism of the market was also reflected in the number of transactions. In 2025, around 9,600 housing sales were completed in Lisbon, representing an increase of 11.8% compared with the previous year. Among the parishes with the highest sales volumes are Lumiar, responsible for 9% of transactions, and Arroios and Benfica, with 7% each. The largest increases in the number of sales were recorded in Beato, Parque das Nações and Campolide, all with rises of more than 40% compared with 2024. Licensing of new residential projects increases New residential development also gained momentum in the capital. In 2025, applications were submitted for the licensing of around 4,250 new homes in Lisbon, an increase of 62% compared with the previous year. This growth brings activity levels close again to those recorded before the pandemic, when the volume of projects ranged between 4,200 and 4,400 housing units per year. Of the total planned for 2025, around 77% corresponds to new construction projects and 23% to rehabilitation operations. There has also been an increase in larger developments. Of the projects with more than 100 units currently in licensing across the country, ten are located in Lisbon, totalling around 1,510 apartments and representing 35% of the new residential supply planned for the city. Some of these developments even exceed 250 units, highlighting the growing scale of real estate development in the capital.
Source: Adobe Stock Author: Redaction General decline in the supply of homes for sale in Portugal The market for homes for sale in Portugal saw a significant decrease at the end of 2025, with available stock falling by 13% compared to 2024. The shortage of new housing, combined with high demand for property, has kept prices rising steadily and created challenges for those looking to buy a home. More favourable credit conditions, lower mortgage interest rates and public support for home purchases helped maintain transactions at a strong pace. Even so, supply continues to shrink, reflecting the lack of new construction capable of keeping up with growing demand in several regions of the country. Greater contraction in major cities Among Portuguese cities, Porto and Bragança led the drop in the stock of homes for sale, recording a reduction of 27%. They were followed by Faro (-25%) and Funchal (-19%). Other cities with significant declines include Coimbra and Viseu (-18%), Beja and Vila Real (-17%) and Castelo Branco and Leiria (-16%). Lisbon recorded a reduction of 8%, showing that the contraction in the market for homes for sale in Portugal is not limited to inland cities, but also affects the capital. This situation highlights that the lack of supply is a national trend, felt across virtually all urban and peripheral markets. Reduction of homes for sale in almost all districts The district-level analysis confirms that the supply of homes for sale in Portugal decreased in the vast majority of territories, with the exception of Guarda, where stock increased by 7%. Coimbra and Leiria stood out with the largest declines (-18%), followed by Porto (-17%), Faro (-16%) and Évora (-16%). Significant reductions were also recorded in Madeira (-15%), Bragança (-15%), Santarém (-13%) and Lisbon (-11%). These figures reveal a widespread contraction in stock, signalling that new construction has not been able to keep pace with strong housing demand. Ongoing downward trend in the housing market Other districts also recorded decreases: Braga (-10%), Setúbal (-9%), Vila Real (-9%) and the island of São Miguel (-9%). More moderate declines were observed in Viana do Castelo (-6%), Aveiro (-5%), Castelo Branco (-3%), Viseu (-3%) and Beja (-2%). This trend confirms that the contraction in the supply of homes for sale in Portugal is persistent and widespread. The combination of limited new construction, high demand and purchase incentive policies continues to put pressure on the market, making home acquisition increasingly challenging across much of the country.
Source: Adobe Stock Author: Redaction House prices continue to rise in January House prices for sale in Portugal rose by 13.1% in January compared with the same period last year, reaching a median value of €3,047 per square metre, the highest ever recorded. This increase represents the third consecutive month of appreciation and reflects sustained demand in the national property market. On a quarterly basis, house prices rose by 2.6%, showing consistent growth. The real estate market remains under pressure, driven by demand in urban and regional areas. Lisbon remains the most expensive city to buy a house, while Porto, Faro and Funchal complete the top locations with the highest increases. The upward trend in house prices affects all regions of the country, including district capitals and autonomous regions. District capitals and main increases In January, house prices rose in 18 of the 19 district capitals and autonomous regions analysed. The largest annual increases were recorded in Guarda (22.2%), Beja (21.9%) and Santarém (21.6%), followed by Viana do Castelo (16.8%), Setúbal (15.7%) and Coimbra (14.9%). Other significant rises occurred in Aveiro (13.9%), Braga (13.2%) and Lisbon (11.2%). Vila Real was the only city to show an annual decline, with house prices falling by 5.2%. Lisbon continues to lead in absolute terms, with the price per square metre reaching €6,065, followed by Porto (€3,940/m²), Funchal (€3,901/m²) and Faro (€3,419/m²). More affordable values remain in Portalegre (€963/m²), Castelo Branco (€987/m²) and Bragança (€1,090/m²). Increases in districts and islands At the level of districts and islands, house prices rose in all 26 territories analysed. Porto Santo recorded the most significant increase, with house prices rising by 41%. Following were Terceira Island (24.4%), Guarda (22.3%), Viseu (21.3%) and Setúbal (20.9%). Other islands, such as São Jorge (20.7%) and São Miguel (20.1%), also registered notable increases. The more moderate rises occurred in Bragança (2%), Pico (3.7%) and Vila Real (5.1%), while Santa Maria practically stabilised, with a variation of just 0.5%. Lisbon remains the most expensive district to buy a house, at €4,637/m², followed by Faro (€3,899/m²) and Porto Santo (€3,843/m²). Regional trends and future impacts Over the past year, all regions of the country saw house prices rise. The Azores lead with an increase of 19.8%, followed by Alentejo (19.2%), Madeira (16.8%) and the Centre (15.3%). The Lisbon Metropolitan Area recorded a rise of 15%, while the Algarve increased by 11.2% and the North by 9.6%. The Centre remains the most affordable region, at €1,734/m², contrasting with €4,322/m² in the Lisbon Metropolitan Area. The housing market in Portugal remains dynamic, and house prices could be affected by the recent storms that hit several regions of the country. In summary, buying a house in Portugal currently costs €3,047/m², with Lisbon and Porto Santo leading in value, while the Azores show the largest annual increase and the North registers more moderate rises.
Source: Adobe Stock Author: Redaction New Senior Housing Model in Portugal Demographic ageing in Portugal has driven the creation of new housing models focused on the senior population. One prominent solution allows owners to sell their home while keeping the right to live in it for the rest of their lives. This model provides financial security and residential stability, addressing economic and social challenges related to longevity and rising living costs. With nearly 2.5 million elderly people in the country and a significant proportion of urban homes owned by retirees, many face the dilemma of selling to release capital or staying in the home where they have built their life. This solution emerges as a realistic alternative, ensuring comfort, dignity, and independence in later life. Growing Demand and Flexible Alternatives Demand for this type of solution has steadily increased, with around 45% of enquiries coming from Greater Lisbon, 22% from Porto, and the remaining 33% spread across the rest of the country. It reflects the need for solutions that combine financial liquidity, the ability to remain in the home, and quality of life. Beyond the financial aspect, this trend increasingly integrates support services such as home care, health services, insurance, and senior housing facilities. The goal is to create a complete ecosystem capable of providing structured responses to the challenges of longevity, allowing seniors to continue living in their homes safely and independently. A Strategic and Sustainable Alternative This model represents a structural shift in the senior housing market, balancing financial stability, comfort, and the ability to remain in the home. At the same time, it is a strategic alternative for families and individuals looking to manage their assets intelligently without compromising quality of life in later years.
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