Source: Adobe Stock Author: Redaction High supply and initial prices above the market Those looking to sell a home in Portugal are currently facing a market with excess supply. According to real estate agents, initial asking prices are, on average, around 15% higher than the final prices at which properties are sold. In the past, the difference between the asking price and the final sale price was only around 5%. Today, the wider gap results from the need to attract buyers in a more competitive market with reduced purchasing power, due to higher interest rates and more expensive mortgage credit. Price adjustments and the impact of interest rates Real estate agents indicate that asking prices typically fall between 10% and 20% before a buyer is found. This reflects market adjustment, with sellers revising expectations in line with current conditions. Rising interest rates have caused financial strain. Many buyers who purchased homes at the limit of their budgets or under more favourable credit conditions are now unable to meet their loan repayments. This situation increases pressure to lower prices, making it harder for those wanting to sell a home quickly. Future outlook and “distressed” cases Within a year, cases of “distressed” sellers are expected to emerge, involving homeowners who bought a new property before selling the old one, benefiting from two- to three-year grace periods granted by banks. After that time, they will face the burden of two simultaneous mortgages, increasing the need to negotiate lower prices. The downward price trend highlights the importance of aligning expectations with market reality, reinforcing the role of intermediaries for those seeking to sell a home efficiently. Adapting to buyers’ financial conditions will be crucial to speed up transactions and avoid long periods on the market without success.
Source: Adobe Stock Author: Redaction New home sales reach historic levels New home sales in Portugal are experiencing one of the strongest periods of the past decades . In the first nine months of 2025, almost 25,000 new homes were sold, the highest figure since 2010. This performance confirms the dynamism of the property market, even in a context of high prices, with new home sales gaining greater weight compared to previous years. According to the latest data from the National Statistics Institute, between January and September 2025 a total of 24,942 new homes were sold. This figure represents a 15-year high and signals a solid recovery compared to the period following the financial crisis, when new home sales fell sharply in Portugal. Average price of new homes rises nearly 89% The increase in new home sales was accompanied by a strong rise in prices. The average value per new home sold grew by almost 89% since 2010, now exceeding €317,000. Overall, new home sales generated around €7.9 billion in the first nine months of 2025, a significant increase compared to 15 years ago. This trend reflects not only higher demand for new housing, but also rising construction costs and a shortage of supply in several regions. New home sales therefore continue to put pressure on average prices in the national property market. Lisbon and Porto lead price growth Metropolitan areas continue to concentrate the highest values in new home sales. In Greater Lisbon, the average price of a new home more than doubled over the past 15 years, reaching around €563,000. This region stands out as the most expensive in the country, driven by domestic and international demand. In the Porto Metropolitan Area, new home sales also recorded strong growth, with the average price rising by more than 80% to around €296,000. These figures show that new home sales remain high in the main cities, reinforcing the upward trend of the property market in Portugal.
Source: Adobe Stock Author: Redaction Property market may reach new high Portugal may end 2025 with close to 170,000 residential transactions, a figure that represents significant growth compared with the previous year. Estimates point to an increase of around 9% relative to the sales recorded in 2024, revealing still robust demand in the sector. Growth slows due to prices Despite the expected rise in sales, the property market is beginning to show clear signs of deceleration. The pace no longer matches the dynamism seen in recent quarters, mainly due to the mismatch between the prices requested by sellers and the financial capacity of households. With housing reaching historically high values, many transactions are no longer viable. The housing price index has recorded sharp increases, particularly in the used-home market, contributing to a less accessible environment for many buyers. Young people and families drive demand A large proportion of transactions comes from families who already own a home and are looking to move, whether due to the need for more space or for location reasons. At the same time, young people up to the age of 35 continue to play a role, supported by incentive measures such as public guarantees linked to mortgage credit and tax benefits for the purchase of a first home. Even so, despite the support, many potential buyers face a difficult reality: incomes that do not keep pace with rising prices. This combination has pushed several households out of the market, reducing the number of completed deals. Outlook for the coming years Despite strong demand, affordability remains the sector’s biggest challenge. The pressure on prices limits purchasing capacity, especially among younger buyers. The most widespread forecast points to a possible stabilisation of values from the second quarter of 2026 onwards, although this depends on economic developments and the supply response. If the projected scenario is confirmed, 2025 may set a sales record but may also mark a turning point in the growth pace of the Portuguese property market, which is now showing signs of slowing after several years of strong expansion.
Source: Adobe Stock Author: Redaction When selling to the State does not ensure IRS capital gains exemption The IRS capital gains exemption under the Mais Habitação programme does not apply to sales to the State when co-ownership exists. In this situation, the State holds the right of first refusal over the property and, by exercising it, excludes the application of the tax benefit. Thus, anyone who owns a property jointly with the State may have to pay tax on the capital gain generated, even if the sale is made to authorised public entities. The Tax Authority clarified this interpretation through binding information published on the Finance Portal, reinforcing that the legal framework leaves no room for exceptions when the right of first refusal is triggered. Right of first refusal invalidates the IRS capital gains exemption The law states that the IRS capital gains exemption only applies to voluntary transfers to the State, autonomous regions or municipalities. However, when co-ownership exists, the State automatically takes priority in acquiring the share being sold. This places the transaction within the category of disposals through the exercise of a right of first refusal, one of the exceptions set out in the Tax Benefits Statute. The initial aim of the scheme was to encourage the provision of properties for public housing at affordable prices, but the legislator excluded all sales prompted by legal preference mechanisms. As a result, the taxpayer cannot benefit from the exemption when the State buys through legal imposition and not by the owner’s choice. Tax consequences for the taxpayer If the State exercises the right of first refusal, the sale automatically falls outside the IRS capital gains exemption, requiring the taxpayer to declare and pay tax on the gain obtained. If that right did not exist, the exemption would apply and the amount of the capital gains would be tax-free, although it would still need to be aggregated for the calculation of the rate applicable to the remaining income, as determined by the Tax Benefits Statute. This aggregation requirement remains even when the taxpayer does not pay IRS on capital gains, ensuring that the final rate reflects total annual income. The clarification issued by the Tax Authority helps avoid misinterpretations and allows property owners to assess in advance the tax impact of selling properties when co-ownership with the State exists.
Source: Adobe Stock Author: Redaction Express home sales gain momentum in Portugal Express home sales have been increasing in the Portuguese real estate market. The gradual drop in inflation, stabilisation of interest rates and easier access to mortgage credit have driven demand, resulting in faster transactions. Many properties are now available for only a few days, with several homes sold in under a week. This trend reflects not only the dynamism of the sector but also the limited housing supply in various regions. Demand continues to exceed property availability, accelerating purchase processes and increasing competition among potential buyers. The average listing period varies depending on property type and location, but homes priced according to local market conditions and in good habitable condition sell fastest. Faro, Porto and Funchal stand out for quick sales Among major Portuguese cities, Faro stands out for having the highest number of properties sold in under seven days. The Algarve market maintains strong demand from both domestic and foreign buyers, contributing to rapid transactions. Following Faro are Évora, Santarém, Funchal and Coimbra, which also show fast-paced sales. In the North, Porto exhibits similar behaviour, with several areas where available homes are quickly acquired. Lisbon, despite being the capital, has a more segmented and competitive market, where high prices and limited central housing reduce express sales. Nevertheless, interest in well-located properties remains strong, particularly in residential districts and expanding peripheral areas. Factors driving express home sales The rise in express sales is linked to several factors. First, gradual price adjustments have made values more balanced relative to actual demand. In parallel, housing purchase support measures, such as IMT exemptions for young buyers and public guarantees, have encouraged real estate investment. Another key factor is easier access to credit, with banks offering more competitive conditions. This environment motivates buyers to act quickly when they find a property within their budget. Express home sales also reflect changes in consumer behaviour, with buyers increasingly using digital platforms to research, compare and close deals. Quick decision-making today reflects high demand and the scarcity of properties offering good value for money. For prospective buyers, it is advisable to monitor new listings and act fast, as the most attractive properties tend to disappear from the market within days. The express sales trend shows that the Portuguese real estate sector remains resilient and responsive to evolving buyer demands.
Source: Adobe Stock Author: Redaction Lisbon dominates national housing market value Lisbon is confirmed as the epicentre of the residential property market in Portugal, representing almost one-third of the total value transacted in the first half of 2025. During this period, real estate deals in Greater Lisbon exceeded €6.3 billion, forming a considerable part of the national total of €19.8 billion. This leadership reflects the capital’s weight in the country’s real estate economy and the sustained demand in the residential segment. Average house prices in Lisbon: high values and upward trend The average price of houses sold in Greater Lisbon is €385,000, well above the national average of €239,000. This figure includes both new and second-hand properties, but it is precisely the new homes that record the highest average values — exceeding €500,000. Strong demand, particularly in the premium segment and for high-quality new constructions, contributes to these levels. Throughout 2025, the price per square metre in Lisbon has shown steady growth, around €4,500/m², reflecting the appreciation of central areas as well as the expansion of metropolitan outskirts, which are starting to see higher valuations. Dynamism in the Lisbon Metropolitan Area The municipalities within the Lisbon Metropolitan Area — notably Oeiras, Cascais, Loures, and Odivelas — play a crucial role in the real estate market, accounting for about 19% of total transactions in Q2 2025 and nearly a third of the overall transaction value. These municipalities offer a diverse range of properties attracting both families and investors and have recorded notable increases in sale values, following the capital’s trends while providing options that balance proximity, quality of life, and accessibility. Lisbon versus other regions: consolidated leadership Despite significant growth and dynamism in other regions such as Porto and the Algarve, Lisbon remains unbeatable in terms of the average value per property sold. Porto, the country’s second-largest metropolitan area, recorded around €1.7 billion in residential transactions, while the Algarve accounted for €1.1 billion. Even so, the average value of houses sold in these regions is significantly below that of Greater Lisbon, highlighting the centrality and appeal of the Portuguese capital, particularly for high-income buyers and investors. Future market trends and challenges in Lisbon The continuous appreciation and high value of housing in Lisbon demonstrate its attractiveness but also pose significant challenges, particularly regarding affordability for local residents. The scarcity of new properties and price pressures require greater investment in urban solutions, rehabilitation, and public policies to balance the market. Additionally, the Lisbon market is experiencing growing demand for sustainable properties that prioritise energy efficiency, location, and quality of life, reflecting a shift in buyer profiles towards valuing these aspects alongside price. The negotiated value of housing in Lisbon in 2025 indicates a robust and expanding market, with a significant volume of transactions and high average prices, especially for new homes. The Portuguese capital maintains a dominant position and a dynamism that places it among the most sought-after and valued cities in Europe. However, rising prices and the declining availability of housing present an increasing challenge for prospective buyers, necessitating serious consideration of housing policies and urban planning to ensure sustainability and diversity in the market in the coming years.
Source: Adobe Stock Author: Redaction House sales in Madeira recorded substantial growth in 2024, with a 37.3% increase in total transaction value, surpassing one billion euros. This growth results from the increase in the number of properties sold, as well as the significant rise in prices, in a context marked by supply challenges and rising construction costs. Growth in transaction volume 3,820 housing units were sold in Madeira in 2024, representing a 15.8% increase compared to 2023. The total sales value reached €1,026.2 million, confirming the vitality of the regional real estate market and the growing interest of both domestic and foreign buyers in properties on the island. Decreased supply and rising costs Despite the growth in sales, the supply of new apartments decreased, resulting in a shortage of completed properties available on the market. This phenomenon is driven by the significant rise in labour and cement costs — one of the main construction materials — which grew by 8.9% in sales, also pushing up final house prices. Housing prices on the rise The median bank valuation reached €1,904 per square metre, the highest since the historical series began in 2011, representing an increase of 14.8% compared to 2023. Meanwhile, the median sale price of housing units reached €2,395 per square metre, with a significant annual rise of 26.8%, reflecting strong demand and reduced supply in the market. Rental market and rent increases The rental market followed this trend of price growth, with the median rent for contracts signed in 2024 reaching €9.60 per square metre, an increase compared to the average recorded in the previous year. This rise reflects the growing pressure on families who choose renting as a housing solution in Madeira. Construction sector growth despite challenges The construction sector recorded a significant increase in labour investment, reaching €904.4 million in 2024, representing a 17.5% rise. This value reflects the efforts of local companies to meet demand, despite production costs and fewer completed buildings compared to the previous year. Permits versus completed projects In 2024, 598 buildings were granted permits in Madeira, an increase of 16.3% compared to the previous year, but only 380 buildings were completed, a decrease of 16.1%. The discrepancy between permitted and completed projects highlights execution challenges and potential delays in making new housing available on the market. Reflections on the Madeiran real estate market The dynamics of house sales in Madeira reveal a growing market, but one subject to limitations caused by construction costs and the shortage of new properties. The trend of rising prices, combined with increased construction requests, reflects the desire for investment and residence in a region attractive for its quality of life and fiscal incentives. This scenario presents the challenge of balancing supply and demand, ensuring that the growth of the real estate market can be sustained in the long term, guaranteeing access to housing for both residents and investors.
Source: Adobe Stock Author: Redaction The time it takes to sell a house is a key indicator for those wanting to buy or sell property in Portugal. In 2025, data shows that a small percentage of houses, around 9% nationally, are sold in less than a week, while others remain on the market for months. These differences depend on the property’s location, type of house, and conditions in the real estate market. Regional variation in sale time At the national level, “express sales”, houses sold in less than a week, represent about 9% of total transactions. Regions such as Braga stand out, with 10% of houses selling quickly, and Évora, where this value reaches 29%. In Lisbon and Porto, percentages are lower, around 6% to 7%, due to greater supply and a more structured demand. At district level, Castelo Branco leads with 25% of houses sold in less than seven days, followed by Évora and Santarém with 11% each. Districts like Viseu and Faro show longer times, with only 6% to 7% of quick sales, reflecting a less dynamic market in these areas. Average time on the market Although some sales happen at record speed, most properties stay on the market longer. According to data, about 25% of houses sell between one week and one month, 29% between one and three months, and 30% between three months and one year. Only 7% remain for sale for more than a year, indicating that the market remains relatively dynamic but with significant variation. Properties in good condition, located in attractive areas or with distinctive features tend to sell faster, as they attract more determined buyers and compete better in a market where supply is limited. Real estate market trends influencing sale time The real estate market in Portugal in 2025 shows strong demand, influenced by lower interest rates and credit incentives for housing, encouraging families to proceed with purchases. However, supply is still limited, causing certain areas to see houses sell very quickly while in other locations sales take longer. Regional demographic and economic differences also reflect in sale time: areas with greater economic and tourist dynamism tend to have shorter sale times, while rural or less sought-after areas experience longer periods. Impact of price and property features on sale time The asking price and condition of the property are decisive factors in sale time. Houses priced in line with the market and in good condition sell faster. In contrast, properties with high prices, maintenance issues, or located in less desirable areas take longer to sell. Additionally, the real estate segment also affects time on market: urban apartments tend to sell within 90 to 120 days on average, while rural properties such as farms and land can take up to 150 to 180 days. Consequences for sellers and buyers For sellers, knowing the average sale time in their region and segment allows them to define appropriate strategies, whether to adjust the asking price, invest in improvements, or plan the timing of the sale. For buyers, understanding the market pace can help act more quickly or negotiate better terms, knowing that in some regions opportunities can disappear within days. How to prepare a sale to reduce time on the market To reduce sale time, it is important to: • Set a realistic and competitive price; • Present the property in good condition, paying attention to minor repairs and cleanliness; • Use effective advertising channels, such as real estate portals and social media; • Work with experienced real estate agents familiar with the local market; • Respond promptly to enquiries and prepare all necessary documents in advance. Outlook for sale time in 2025 and beyond In 2025, although there is a trend towards stabilisation in house sales due to a balance between demand and supply, the average time on the market is expected to continue varying according to property type and region. The market remains dynamic, with competitive properties selling quickly, but less attractive ones possibly spending months for sale. Investment in infrastructure development and urban area expansion may influence increased demand in currently less sought-after zones, potentially reducing the average sale time in those regions. The house sale time in Portugal in 2025 presents different realities depending on location and property characteristics. While about 9% of houses leave the market in less than a week, most sell over several months, reflecting regional dynamics and market conditions. Understanding these trends is essential for those wishing to buy or sell property informedly, allowing optimisation of results and decisions.
Source: Adobe Stock Author: Redaction When selling a property in Portugal, it is essential to understand the tax implications associated with the transaction, especially when there is the possibility of paying capital gains tax. This topic is particularly relevant for those intending to reinvest the amount obtained in another home, either inside or outside the country, and who do not want to be surprised by unexpected tax obligations. 1) What is capital gain and when is IRS payable? 2) IRS exemption: what changed with the Mais Habitação package? 3) Exemption limitations: property location is decisive 4) Difference compared to the general IRS regime 5) Practical implications for those who sell and reinvest outside Portugal 6) How to declare the transaction in the IRS 7) Conclusion: extra caution when paying capital gains tax 8) Additional perspective: growing emigration and impact on capital gains tax payment What is capital gain and when is IRS payable? Capital gain corresponds to the profit obtained from the sale of a property, calculated by the difference between the sale price and the purchase price, adjusted for expenses and charges related to the property. This gain is generally subject to IRS taxation. However, the law provides exemption cases, namely when the amount obtained is reinvested in the acquisition of own permanent residence, provided certain requirements are met. IRS exemption: what changed with the Mais Habitação package? The Mais Habitação package introduced an exceptional and temporary measure that allows capital gains arising from the sale of second homes or land for construction to be excluded from taxation, provided the amount realised is used to repay a mortgage on the own permanent residence of the taxpayer, their family household, or their descendants. This measure was created to support Portuguese families in the context of rising interest rates and increased housing loan costs. Exemption limitations: property location is decisive Despite the intention to support families, the Tax Authority clarified that this exemption only applies if the new own permanent residence is located in national territory. In other words, if the sale proceeds of the second home are invested in a property located outside Portugal, even within the European Economic Area, the taxpayer is obliged to pay IRS on the capital gain. This limitation results from the understanding that the measure aims to address specific problems in the Portuguese housing market. Difference compared to the general IRS regime The general regime of the IRS Code allows reinvestment of the sale amount in own permanent residence located in another EU or EEA member state. However, the Mais Habitação package law does not provide for this possibility, which led the Tax Authority to restrict the benefit only to properties within national territory. This difference can cause confusion and requires extra attention from taxpayers. Practical implications for those who sell and reinvest outside Portugal In practice, anyone selling a second residence and choosing to invest the proceeds in a home outside Portugal, even if for own permanent residence of themselves or their descendants, will not benefit from the exemption provided by the Mais Habitação package. Thus, capital gains tax must be paid under IRS. This rule applies even to properties located in other EU or EEA countries. How to declare the transaction in the IRS When filling in the IRS return, the taxpayer must bear in mind that only properties located in national territory allow benefiting from the exemption. Annex G of the return only contemplates this possibility. Therefore, it is essential that the location of the new property is correctly indicated to avoid problems with the Tax Authority and ensure the correct calculation of the tax due. Conclusion: extra caution when paying capital gains tax The obligation to pay capital gains tax remains whenever the sale proceeds of a second residence are invested outside Portugal, even if the goal is to acquire or repay a mortgage on an own permanent residence. Only properties located in national territory allow benefiting from the exemption provided by the Mais Habitação package. Therefore, the decision on where to invest the sale amount must be carefully considered, taking into account the associated tax consequences. Additional perspective: growing emigration and impact on capital gains tax payment In recent years, Portugal has seen a consistent increase in the number of citizens choosing to emigrate in search of better living conditions. According to the latest INE data, nearly 34,000 people left the country in 2024 alone, mostly young graduates, totalling close to one hundred thousand permanent emigrants in the last three years. This new wave of emigration is distinguished by the high qualification level of those leaving, with over 40% holding a degree and a large proportion of emigrants aged between 20 and 29. This reality has a direct impact on the real estate investment decisions of Portuguese citizens. Many of these emigrants consider using the proceeds from selling properties in Portugal to acquire own permanent residence in their destination countries. However, Portuguese tax law does not keep pace with this new mobility: those who decide to invest outside Portugal, even within the European Union, do not benefit from the IRS exemption on capital gains foreseen in the Mais Habitação package. This means that for thousands of Portuguese seeking a new life abroad, selling a second home in Portugal involves a heavier tax bill, reducing the amount available for reinvestment abroad. Furthermore, the obligation to pay IRS on the capital gain may be a disincentive to mobility or at least an additional financial limitation for those already facing the challenges of starting anew in another country. This situation highlights the need for reflection on the adequacy of tax policies to the new Portuguese demographic and social reality, marked by young, qualified, and growing emigration.
Source: Adobe Stock Author: Redaction Bank property valuation is a crucial step for those intending to purchase a home with a mortgage in Portugal. This process determines the amount the bank is willing to consider as collateral, directly influencing the loan amount granted and the conditions of the mortgage. In 2025, bank valuation figures reached record highs, following the upward trend of the national property market. What is a bank property valuation? A bank property valuation is an assessment carried out by independent experts, hired by the financial institution, to determine the market value of a property. This value serves as the basis for mortgage approval, with banks typically financing up to a certain percentage of the lower value between the purchase price and the valuation. The aim is to protect the bank against depreciation risks and ensure the property is adequate collateral for the loan. Valuation trends in 2025 In May 2025, the median bank valuation of residential property in Portugal reached €1,886 per square metre, €20 more than the previous month, setting a new record. This rise reflects a year-on-year increase of 17.1%, highlighting the dynamism of the property market. Around 35,300 bank valuations were carried out, a slight decrease compared to the previous month, but a 7.5% increase compared to the same period last year. Regional and typology differences Property appreciation is not uniform across the country. Regions such as Greater Lisbon, the Algarve and the Setúbal Peninsula continue to show above-average valuation figures, with Greater Lisbon leading at €2,874/m² for flats. The Algarve recorded the highest monthly increase, while the Autonomous Region of Madeira was the only one to register a decline. On the other hand, areas such as Alto Tâmega e Barroso, Alto Alentejo and Beiras e Serra da Estrela continue to show figures significantly below the national median. In terms of property types, one-bedroom flats (T1) saw the highest monthly increase, reaching €2,756/m². Two-bedroom (T2) and three-bedroom (T3) flats also rose, to €2,203/m² and €1,888/m² respectively. Detached houses had a median value of €1,394/m², with the highest figures recorded in Greater Lisbon and the Algarve. Impact of bank valuation on mortgage credit The value determined in a bank property valuation has a direct impact on the conditions for obtaining mortgage credit. Banks use this figure to calculate the loan-to-value (LTV) ratio, which determines the percentage of the property’s price that can be financed. If the valuation is lower than the purchase price, the buyer will need to provide a higher deposit to cover the difference. On the other hand, higher valuations may facilitate access to credit and allow better financing conditions. The increase in bank valuation figures benefits existing homeowners by increasing the patrimonial value of properties, but it can make access to housing more difficult for new buyers, especially young people and families, due to higher deposit requirements and rising market prices. Market trends and outlook The latest data point to continued property appreciation in Portugal, driven by both domestic and foreign demand, as well as factors such as limited supply and foreign investment. Despite a slight decrease in the number of bank valuations compared to the previous month, market interest remains high, with strong demand from those seeking to buy a home or invest in real estate. Bank property valuation will continue to be a key instrument in the granting of mortgage credit, influencing not only access to financing but also price trends in the market. For those planning to buy a home, it is essential to monitor bank valuation trends and prepare for potentially higher deposit requirements, especially in regions where prices per square metre continue to rise. Bank property valuation is a decisive factor in the home buying process with a mortgage in Portugal. The rise in valuation figures in 2025 reflects market appreciation, with direct impacts on financing conditions and buyer profiles. Monitoring bank valuation trends is essential for those wishing to make informed decisions, whether to buy a home, invest, or renegotiate mortgage terms.
Source: Adobe Stock Author: Redaction The Lisbon real estate market is going through one of the most dynamic periods of the last decade. The price to sell a house in Lisbon recorded, in the first quarter of 2025, an increase of 5.9% compared to the previous quarter, reaching an average of €5,038/m². This appreciation is the highest in the last eight years, reflecting strong demand and an increasingly valued supply. If you are thinking of selling your property, this is the right time to understand how to set the price to sell a house strategically and informed. What is driving the price to sell a house in Lisbon? After years of moderate growth, Lisbon is once again leading real estate appreciation in Portugal. In the first quarter of 2025, the year-on-year increase was 8.6%, accelerating from 5.5% at the end of 2024. This trend results from several factors: High demand Despite a slight decrease in sales compared to the previous quarter (2,800 houses sold, down 5%), demand remains 32% above the year-on-year period. Limited supply The scarcity of available properties, especially in central and well-served areas, is pushing prices upwards. Economic dynamism The increase in foreign investment and post-pandemic economic recovery have had a direct impact on property appreciation. How to calculate the price to sell a house in Lisbon? Setting the price to sell a house is a process that requires detailed analysis and knowledge of the local market. Here are the essential steps: Property evaluation To evaluate the price of your property, consider factors such as location, type, condition, usable area, and the presence of extras (balcony, garage, elevator). Renovated properties or those in prime areas may justify prices above average. Comparative market analysis Research similar properties recently sold in the same area. Compare prices per square metre, features, and average selling time. In Lisbon, values can vary considerably between parishes. Market trends Follow quarterly and annual trends. The recent 5.9% increase may justify an upward adjustment of the asking price, but keep in mind that competition is also more active. Professional consultancy Turning to a real estate agency can be decisive. Professionals have access to up-to-date data and know how to adjust the price to sell a house according to real demand and buyer profiles. Strategies to maximise the sale value Focus on presentation Small improvements and good photographic presentation can enhance the property and justify a higher price. Effective advertising Use real estate portals, social media, and databases of potential buyers. Informed negotiation Be prepared to negotiate, but set a minimum acceptable value in advance. Lisbon versus other municipalities Although municipalities like Mafra have recorded even more significant year-on-year increases (22.1%), Lisbon remains the city with the highest average price per square metre. Cascais, Loures, Seixal, and Odivelas show lower appreciation rates but continue to be alternatives for those looking to sell or buy a house in the Metropolitan Area. The price to sell a house in Lisbon has never been so high. Taking advantage of this favourable situation requires rigorous market analysis, a realistic property evaluation, and a well-planned sales strategy. If you are thinking about selling, this is the ideal time to act, but remember: the success of the sale starts with setting the right price.
Source: Adobe Stock Author: Redaction The Portuguese property market continues to undergo significant changes, with the average house price reaching historic levels in May 2025. According to the latest data, the average housing sale price increased to 414,000 euros, representing a 4% rise compared to April and an 18% increase year-on-year. Meanwhile, the rental market stabilised at 1,300 euros per month, although with marked disparities between regions. This scenario reflects not only supply and demand dynamics but also the particularities of each district and autonomous region. Evolution of average house prices by region The rise in average house prices was not uniform across the country. Lisbon, Faro, Madeira and the Azores continue to lead the ranking of the most expensive districts and autonomous regions to buy property, pushing the national average to unprecedented levels. North In the North of the country, Braga and Aveiro stood out with monthly increases of 2% and 1%, respectively, both reaching 340,000 euros, representing annual rises of over 15%. Porto approached 400,000 euros, settling at 395,000 euros, with 14% annual growth. Viana do Castelo appreciated by 13% year-on-year, reaching 287,000 euros. Conversely, Bragança remained at 110,000 euros, registering a 13% drop compared to the previous year. Vila Real and Viseu showed slight monthly decreases but maintained positive annual growth, while Guarda, despite a monthly fall, appreciated more than 20% compared to May 2024. Centre Lisbon consolidated its position as the most expensive district in the country, with the average house price rising 4% monthly and 33% annually, now standing at 650,000 euros. Coimbra surpassed 250,000 euros, with monthly and annual growth of 2% and 26% respectively. Santarém and Leiria also recorded significant increases, reaching 237,000 euros and 299,000 euros respectively. Castelo Branco remained almost unchanged, with an average price of 84,500 euros. South In the South, Faro stood out as the most expensive mainland district after Lisbon, with the average house price at 535,000 euros, reflecting an annual increase of 22%. Évora rose 4% monthly and over 23% annually, reaching 259,000 euros. Setúbal increased by 2% monthly and 22% annually, reaching 440,000 euros. Beja rose 5% compared to April, now at 183,000 euros, 26% higher than a year ago. Portalegre remained stable at 120,000 euros, with 26% annual growth. Autonomous Regions In the autonomous regions, Madeira settled at 590,000 euros, with an annual increase of 24%, making it the second most expensive area in the country to buy property. São Miguel Island in the Azores appreciated 7% in the last month, reaching 385,000 euros, with 38% annual growth. Other islands, such as Corvo and Faial, also recorded significant increases, driven by rising tourism and demand for second homes. Rental market: national stability and regional contrasts Despite the stabilisation of average rent nationally, regional differences are clear. Lisbon remains the district with the highest average rent in the country, at 1,670 euros, despite a slight monthly drop. In the North, Porto was steady at 1,200 euros, while Braga saw a decrease to 875 euros. Guarda stood out with a 47% annual increase, reaching 560 euros, and Vila Real increased by 50% year-on-year, although remaining at 600 euros. In the Centre, Coimbra recorded the highest monthly increase in the region, rising 6% to 795 euros. Leiria increased to 813 euros, while Santarém remained at 800 euros, with 7% annual growth. Castelo Branco dropped to 550 euros, reflecting monthly and annual declines. In the South, Faro remained the most expensive district in the region for renting, with rents reaching 1,300 euros, a 2% increase compared to April and 37% year-on-year. Setúbal rose to 1,250 euros, Évora increased to 895 euros, and Beja remained at 700 euros. Portalegre recorded a sharp 15% increase last month, reaching 575 euros. In Madeira, rents reached 1,600 euros, a 7% rise compared to the previous month, consolidating the region as one of the most expensive for renting. Conversely, São Miguel Island saw the average rent fall to 800 euros, representing a monthly and annual drop. Trends and outlook for the property market The average house price in Portugal continues on an upward trend, especially in major cities and tourist regions. Lisbon, Faro, Madeira and the Azores remain the most dynamic and valued markets for both buying and renting. However, the stabilisation of rents nationally may indicate a slowing of price increases, although significant rises persist in specific areas. Regional disparities remain evident, with some regions recording increases well above the national average, while others show signs of stabilisation or slight correction. Tourism growth, demand for second homes and limited supply continue to be key factors driving the average house price. For those looking to buy or rent property in Portugal, it is essential to closely follow these trends and analyse the specificities of each region to make informed decisions aligned with the realities of the national property market.
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