House prices continue strong growth
House prices in Portugal continued to record significant growth in the first quarter of 2026. According to data released by the National Statistics Institute (INE), the House Price Index increased by 17.8% compared with the same period in 2025. Although this remains a high growth rate, it represents a slowdown of 1.1 percentage points compared to the previous quarter.
This was the first slowdown in house prices since the second quarter of 2024, signalling a slight moderation in the national property market after several quarters of strong appreciation.
Existing homes lead price increases
The rise in house prices was more pronounced in the existing homes segment. Between January and March 2026, second-hand properties recorded a year-on-year increase of 19.7%, clearly surpassing the 12.6% growth observed in new homes.
Compared with the previous quarter, house prices rose by 3.8%. Existing homes once again stood out, with an increase of 4.2%, while new homes advanced by 2.7%. These figures show that demand continues to put pressure on the second-hand housing market, contributing to rising house prices.
Number of transactions falls in the first quarter
Despite rising house prices, the number of transactions declined. In the first quarter of 2026, 37,745 homes were sold, representing a year-on-year decrease of 8.7%. Compared with the final three months of 2025, the reduction was even more significant, reaching 12.4%. The decline in transactions suggests a less dynamic market in terms of volume, although prices continue to rise.
Value of transactions increases despite lower sales
Even with fewer transactions, the total value generated by the housing market increased. The overall value of transactions reached €9.9 billion in the first quarter of 2026, up 3.2% compared with the same period a year earlier. Households continued to dominate demand, accounting for the purchase of 32,828 homes, equivalent to 87% of all transactions. This segment represented an investment of €8.6 billion.
On the other hand, buyers with tax residence outside Portugal reduced their presence in the market. Purchases made by foreign residents fell by 15.6% year-on-year, totalling 1,770 homes. Nevertheless, rising house prices continue to support growth in the overall value of transactions in the Portuguese property market.
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