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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