Source: Adobe Stock Author: Redaction Flexible model changes how homes are bought Buying a shell home is gaining relevance in a context marked by rising housing prices and the search for solutions better suited to individual needs. In this model, the buyer acquires only the basic structure of the property, becoming responsible for finishes and the organisation of the interior space. This approach allows greater personalisation but also requires planning and management skills. By choosing to buy a home this way, it is possible to significantly reduce the initial cost, as elements such as finishes, kitchens or bathrooms are excluded. However, this initial saving implies unavoidable future costs, requiring careful analysis of the total investment. Advantages and challenges of buying a shell home The main advantage of buying a shell home lies in its more competitive price, which can represent a significant reduction compared to traditional solutions. In addition, this model offers flexibility to adapt the home over time, creating divisions and environments according to each family’s needs. However, buying a home in this format also presents challenges. Responsibility for finishes, licensing and possible technical issues may fall on the owner, raising questions about the division of responsibilities. Managing the works and costs requires organisation and knowledge, being a decisive factor for the success of the project. Efficiency, personalisation and new solutions The trend of buying a shell home is also linked to greater efficiency in construction and reduced waste. By avoiding standardised solutions, the need for later alterations is reduced, contributing to more sustainable practices. At the same time, the sector has been investing in more industrialised and modular models, which allow costs to be reduced and deadlines accelerated. This evolution makes it possible to create more accessible and adaptable homes, better responding to market demands. Impact on the future of housing Buying a home based on this model represents a structural change in the real estate sector. The combination of personalisation, efficiency and cost control is transforming how living spaces are designed and used. As this trend consolidates, buying a home ceases to be a closed process and becomes a more flexible experience, where the user takes an active role in defining the space. This approach is likely to gain even more traction in the coming years, following the evolution of housing needs.
Source: Adobe Stock Author: Redaction Brazilians strengthen premium real estate Premium real estate in Portugal continues to attract foreign investment, with a highlight on premium real estate associated with Brazilian buyers. In 2025, this segment reached a total volume of 65.8 million euros, reinforcing the growth trend of premium real estate in the country. The data shows that Portuguese premium real estate maintains strong attractiveness, mainly due to stability, quality of life and security. The average value of transactions in premium real estate reached 1.4 million euros, with a focus on large-scale operations in luxury locations. Lisbon-Cascais dominates premium real estate The Lisbon-Cascais axis continues to lead premium real estate in Portugal, concentrating around 67% of the leads associated with this segment. Cascais and Estoril stand out as the most sought-after areas within premium real estate, followed by Avenidas Novas and Parque das Nações. In terms of transactions, Lisbon maintains leadership in premium real estate, while Cascais stands out for the highest financial volume, with 27.7 million euros, representing 42% of the total moved in this segment. Apartments lead demand in premium In premium real estate, apartments continue to be the most sought-after property type, representing 64% of total demand, especially in T2 and T3 typologies. Still, the highest value in premium real estate is found in villas, which reach significantly higher valuations. The average value of apartments in premium real estate is around 1.17 million euros, while villas reach 2.47 million, almost double. This difference reinforces the weight of villas as a reference asset in premium real estate. Confidence drives Brazilian investment In premium real estate, trust and networking play a decisive role in attracting Brazilian buyers. Real estate partnerships have contributed to the increase in qualified leads and deal closures in this segment. The growth of premium real estate is directly linked to the perception of Portugal as a safe and stable destination. This factor continues to reinforce demand from Brazilian clients, who seek exclusive assets, with greater privacy and premium location in Portuguese premium real estate.
Source: Adobe Stock Author: Redaction 6% VAT and new penalty rules Anyone purchasing a home with the benefit of 6% VAT on construction or renovation of primary and permanent housing will no longer have to repay this tax incentive if they later stop living in the property. However, the 6% VAT regime is now linked to a new IMT penalty. Under the new 6% VAT rules, if the property is not used as a permanent residence within six months or ceases to be so within the first year, the buyer may face a 10% increase on the taxable value of the property. This change replaces the obligation to refund the VAT benefit with an alternative tax penalty. Conditions for applying 6% VAT The 6% VAT regime applies to properties intended for primary and permanent housing or rental housing with moderate rents. To benefit from 6% VAT, the property must be sold within a maximum of 24 months after the occupancy licence is issued, and this condition must be stated in the purchase deed. The 6% VAT applies to urban development operations started between September 2025 and December 2029, with phased implementation. In the case of rental, 6% VAT requires the property to be maintained for at least 36 months and rent limits of up to 2,300 euros per month. IMT, rental and exceptions Under the new 6% VAT framework, the 10% IMT penalty does not apply in exceptional situations such as marriage, cohabitation, divorce or an increase in household size. The 6% VAT regime therefore allows some flexibility in duly justified cases. In addition to 6% VAT, the tax package includes income tax reductions for rental income, incentives for long-term rental, and investment incentives in real estate. The 6% VAT coexists with more favourable taxation rules for landlords and investors. Developers remain required to comply with the 6% VAT conditions and to regularise tax payments with the Tax Authority if the conditions are no longer met, ensuring correct application of the 6% VAT regime.
Source: Adobe Stock Author: Redaction The Algarve leads housing affordability challenges The Algarve is the region in Portugal where it is most difficult to buy a home, making housing in the Algarve one of the biggest challenges for those who live and work in the area. The combination of low wages and high housing prices in the Algarve creates strong pressure on access to home ownership. With an average salary of around 1,320 euros and a price per square metre among the highest in the country, housing in the Algarve allows the purchase of only 57 m² on average, the lowest figure nationwide. This makes housing in the Algarve particularly unaffordable for families and young people. Tourism drives housing prices in the Algarve The strong presence of tourism in the Algarve is one of the main factors influencing housing prices in the Algarve. The region generates high economic value but maintains wages below the national average, which worsens access to housing in the Algarve. Experts note that tourism seasonality and the sector’s high dependence contribute to distortions in the Algarve housing market. In addition, much of the housing supply in the Algarve is not intended for permanent residence, but rather for tourist rentals and investment. Areas such as the Golden Triangle, including Quinta do Lago, Vale do Lobo and Vilamoura, further increase housing prices in the Algarve, with values well above the national average. Madeira and Lisbon also face housing pressure The difficulty in accessing housing is not limited to the Algarve, although housing in the Algarve remains the most pressured. In Madeira, housing also faces strong demand, with geographical constraints and limited new supply pushing prices up. In Greater Lisbon, despite higher wages, housing remains expensive and purchasing power is reduced. The differences between regions show that housing in Portugal is highly unequal, with housing in the Algarve among the most affected. The Alentejo offers better housing access The Alentejo stands out as the region where housing is most affordable in Portugal, in contrast with housing in the Algarve. With wages similar to the national average, it is possible to buy significantly larger properties in the Alentejo. The price gap shows that housing in the Algarve can be several times more expensive than in other regions. While in areas such as Alter do Chão it is possible to buy larger homes, housing prices in the Algarve severely limit access. Young people struggle to access housing Pressure on housing in the Algarve, Madeira and Lisbon particularly affects young people, who face major difficulties entering the housing market. Limited supply and high prices make the decision to buy a home increasingly difficult. Many opt to look for housing outside major urban centres, but even so, housing in Portugal continues to show high prices. Housing in the Algarve remains one of the main examples of this structural pressure in the national market.
Source: Adobe Stock Author: Redaction Undivided inheritances do not prevent access to IMT exemption Young people up to 35 years old who hold only a share in an undivided inheritance can continue to benefit from the exemption from IMT and Stamp Duty on the purchase of their first permanent home. The clarification was issued by the Tax Authority (AT) through a binding ruling published on the Finance Portal. The case involved a taxpayer seeking confirmation on whether participation in an undivided inheritance containing residential properties would prevent access to the tax benefit. According to the AT interpretation, while the inheritance remains undivided, the heir is not considered the direct owner of any specific property within that estate. Therefore, holding a share in an undivided inheritance does not automatically exclude access to the IMT exemption. Tax benefit depends on the inheritance status The IMT and Stamp Duty exemption regime for people up to 35 years old was created to support the purchase of a first permanent home. However, the law excludes those who own residential property at the time of purchase or in the previous three years. The question was specifically related to ownership in undivided inheritances. The AT concluded that, without partition, there is no direct ownership of specific properties, thus maintaining eligibility for the tax benefit. However, the tax authority warns that the situation is always assessed at the time of the deed. If the inheritance ceases to be undivided before the purchase and the taxpayer becomes the owner of a specific property, the exemption may be lost. IMT exemption remains accessible for young people The decision clarifies an important issue for many young buyers in Portugal. Undivided inheritances do not, in themselves, prevent access to the IMT exemption when purchasing a first home. With this interpretation, the Tax Authority reinforces that the key factor is the absence of direct ownership of residential property at the time of acquisition of the permanent home. The measure remains one of the main tax supports for young people up to 35 years old entering the housing market in Portugal.
Source: Adobe Stock Author: Redaction Housing supply continues to decline The supply of homes in Portugal fell again in the first quarter of 2026, confirming the market’s difficulty in responding to high housing demand. The reduction in the stock available for purchase is increasing pressure on prices, at a time when many families continue to face difficulties finding a home. The drop in housing supply also reflects delays in the construction of new developments and the shortage of properties available in the country’s main cities. In several regions, the number of homes for sale fell significantly in the first months of the year. Faro, Porto and Funchal among the most affected Among the district capitals and autonomous regions analysed, Faro recorded the largest decline in housing supply, followed by Portalegre, Funchal and Porto. Cities such as Évora, Coimbra, Aveiro, Braga and Lisbon also recorded significant reductions in the number of properties available for purchase. The decrease in housing supply is mainly affecting urban and tourist markets, where demand remains high. In many of these areas, available properties are quickly absorbed, further reducing options for buyers. Property market continues to pressure prices With fewer homes available on the market, housing prices remain under pressure. Demand remains active, driven by families looking for a first home, investors and foreign buyers interested in the Portuguese market. The imbalance between housing demand and supply has contributed to a continuous rise in sale prices. In several municipalities, buyers are facing fewer options and higher prices, especially for mid-range properties. Lack of construction limits supply recovery Industry experts argue that the recovery of housing supply will depend on increased new construction and faster licensing processes. Without new homes entering the market, the shortage trend could continue throughout 2026. Although some regions have shown slight increases in housing stock, the national reality continues to be marked by a reduction in housing supply. The situation reinforces the challenges facing the Portuguese property market and the need for measures capable of increasing housing availability in the coming years.
Source: Adobe Stock Author: Redaction Public guarantee gains weight in housing loans The public guarantee for home purchases by young people up to 35 years old has been gaining relevance in housing loans in Portugal. According to Banco de Portugal (BdP), this mechanism already represents a significant share of housing loan contracts, showing the impact of the measure on access to home ownership. The public guarantee allows the State to act as a partial guarantor, facilitating bank financing. Growing use of the public guarantee in housing loans Up to March, banks used around 62% of the total amount allocated by the State under the public guarantee in housing loans. This scheme, applied to young housing loans, already represents a relevant share of contracts signed, reinforcing the weight of the public guarantee in the property market. In total, housing loans with the public guarantee already account for thousands of contracts and billions of euros, demonstrating strong uptake of the programme. The public guarantee in housing loans has been particularly relevant among young people, allowing in many cases financing of the full property valuation. Young people lead uptake of housing loans Among young people up to 35 years old, the public guarantee has an even greater impact on housing loans. Almost half of the contracts in this age group were made under the public guarantee, highlighting the importance of support in young housing loans. Most beneficiaries of the public guarantee in housing loans are Portuguese nationals, with a focus also on other young profiles with higher education and ages between 26 and 30. Housing loans with the public guarantee also show long maturities and values often exceeding 200,000 euros. Regional differences and impact of the measure The weight of the public guarantee in housing loans is not uniform across the country. In several inland regions, more than half of young housing loan contracts use the public guarantee, while in areas such as Greater Lisbon the share is lower. The public guarantee in young housing loans will remain in force until 2026 and is seen as an important tool to facilitate access to home ownership. By allowing financing of up to 100% of the property value, housing loans with the public guarantee are changing the way young people enter the property market in Portugal.
Source: Adobe Stock Author: Redaction Growing risks in mortgage lending The mortgage lending market in Portugal is facing increased challenges due to the continuous rise in house prices. According to Morningstar DBRS, there are elevated valuation risks and a more limited repayment capacity among households. This situation stems from an imbalance between supply and demand, which has been pushing up values in the real estate sector. Mortgage lending continues to grow, but with signs of greater caution from financial institutions. Resilient demand and public support The analysis highlights that rising house prices are supported by resilient demand, also driven by public measures aimed at younger buyers. Among these is the public guarantee for first-home purchases, which is expected to be increased by €750 million, bringing the total to €2.3 billion. This support for mortgage lending has helped sustain market momentum, despite access difficulties for some households. Banking system remains solid Despite the risks associated with mortgage lending, the agency stresses that the Portuguese banking system is in a robust position. Banks have strengthened capital levels, improved risk management and reduced reliance on external funding. Even so, the agency will continue to monitor mortgage lending to assess whether measures such as the public guarantee could affect asset quality in the future. Despite the growth in loans since 2024, there is no evidence of a credit-driven housing bubble.
Source: Adobe Stock Author: Redaction Where to find cheap homes in Portugal The national real estate market continues to rise, but there are still areas where it is possible to find cheap homes. Price differences between regions are significant, with the interior showing much lower values compared to the most sought-after areas. According to data from the National Statistics Institute, the median price of housing in Portugal has been increasing, driven mainly by Greater Lisbon, the Algarve and the Porto Metropolitan Area. Even so, most municipalities remain below the national average, revealing an uneven market. Cheap homes are mainly concentrated in the interior of the country, where demand is lower and supply more affordable. This makes it possible to purchase properties at much lower prices compared to major urban centres. The cheapest municipalities to buy a home Among the cheapest municipalities, several inland locations stand out, especially in the districts of Bragança, Guarda, Viseu and Coimbra. In these areas, buying cheap homes is a real possibility, even for properties of around 100 square metres. Sernancelhe appears as the most affordable municipality, with very low prices per square metre. It is followed by Figueira de Castelo Rodrigo and Freixo de Espada à Cinta, where it is also possible to find cheap homes for less than 30 thousand euros. In the remaining municipalities in this group, prices remain equally low, allowing the purchase of homes for under 35 thousand euros. This trend confirms that the interior remains the main option for those looking for cheap homes in Portugal. Differences between more expensive and affordable regions While cheap homes are found in the interior, major urban centres show significantly higher prices. Lisbon leads as the most expensive municipality, followed by Cascais and Oeiras, where prices per square metre reach levels far above the national average. The Algarve and Porto also record high values, reflecting strong demand and the attractiveness of these regions. In these markets, buying a home requires a significantly higher investment, especially in premium areas. The difference between municipalities highlights the dual nature of the Portuguese real estate market. On one hand, there are cheap homes in less dense areas; on the other, metropolitan areas continue to push prices upwards, making access to housing more challenging.
Source: Adobe Stock Author: Redaction House valuations reach a new high Bank house valuations continue to rise, reaching a median value of €2,151 per square metre in March. This represents a monthly increase of €29 and confirms the upward trend in the housing market. On an annual basis, house valuations grew by 16.5%, maintaining a consistent upward trajectory. Despite a slight slowdown compared to the previous month, data show that prices remain high with no significant signs of decline. Apartments lead price increases House valuations in the apartment segment remain the main driver of growth. The median value stood at €2,511/m², reflecting a 21.2% increase compared to the same period last year. For houses, valuations also rose, although more moderately. The median value reached €1,542/m², representing a 12.6% year-on-year increase. Apartments continue to account for the majority of valuations, representing the largest share of housing credit, reinforcing their weight in the market. Lisbon and Algarve record highest prices House valuations are highest in Greater Lisbon and the Algarve. In apartments, Greater Lisbon leads with €3,333/m², followed by the Algarve at €2,883/m². For houses, the trend is similar, with Greater Lisbon reaching €2,838/m² and the Algarve €2,755/m². In contrast, regions such as Alentejo and the Centre continue to record lower values in house valuations. Setúbal Peninsula sees strongest growth House valuations in the Setúbal Peninsula stand out for their strong growth, with increases of 26.5% in apartments and 24.8% overall. This rise reflects demand for alternatives to Greater Lisbon, putting pressure on prices in the region. At the same time, the number of bank valuations increased compared to the previous month but fell year-on-year, indicating a possible impact from tighter credit conditions.
Source: Adobe Stock Author: Redaction Property prices in Greater Lisbon lead in Portugal The price of properties in Greater Lisbon reached €3,439/m2 in 2025, positioning itself as the highest in the country, according to INE data. This value exceeds the national average by €1,363/m2, which stood at €2,076/m2, reflecting strong demand in the real estate sector. The evolution of property prices in Greater Lisbon follows the national trend, which recorded a 16.8% increase compared to the previous year, reinforcing pressure on the real estate market. INE highlights rise in property prices in 2025 According to INE, 164,677 housing transactions were carried out in 2025, allowing the calculation of the median property price in Portugal. In addition to Greater Lisbon, the Algarve, the Setúbal Peninsula, Madeira and the Porto Metropolitan Area also recorded values above the national average. Property prices in Greater Lisbon stand out across all municipalities in the sub-region, with Lisbon being the municipality with the highest value. There are also differences between domestic and foreign buyers, with the latter paying higher prices per square metre. Differences between municipalities and buyers Property prices in Greater Lisbon are not uniform, with variations between municipalities. Lisbon, Cascais and Oeiras show some of the highest values in the country, reflecting the attractiveness of these locations. INE analysis also shows that several municipalities, mainly in the Lisbon Metropolitan Area and the Algarve, remain above the national average. This highlights the concentration of property value in urban and coastal areas. New and existing homes with different dynamics Property prices in Greater Lisbon follow the national trend, where new housing generally presents higher values than existing properties. However, Amadora is an exception, with lower prices in new homes compared to existing ones. The data also indicates that Lisbon and Cascais record the highest prices for new housing, while other regions present more affordable values. The behaviour of property prices in Greater Lisbon reinforces the region’s role as a benchmark in the real estate market, maintaining high levels of demand and continuous appreciation.
Source: Adobe Stock Author: Redaction Discreet luxury in the district of Guarda The district of Guarda has been establishing itself as an alternative destination in the luxury real estate market, especially for those seeking tranquillity and contact with nature. The most exclusive areas of the district of Guarda stand out for the presence of estates, detached houses and manor homes set in unique natural landscapes. Unlike more urban markets, luxury here is associated with space, privacy and authenticity. The most exclusive areas of the district of Guarda are spread between Serra da Estrela, the urban axis of the city of Guarda and the Douro Superior, where large properties with significant heritage value predominate. Serra da Estrela concentrates exclusive properties Serra da Estrela is one of the main hubs of the most exclusive areas of the district of Guarda. Locations such as Gouveia, Seia and Manteigas offer a diverse range of high-end properties, from historic mansions to estates with several hectares. These most exclusive areas of the district of Guarda attract those looking for a second home or tourism investment, benefiting from proximity to the mountains and unique landscapes. Many properties combine traditional architecture with modern comfort, enhancing the experience of living in a natural setting. Guarda and surroundings with premium residential offer The city of Guarda and its surroundings also form part of the most exclusive areas of the district of Guarda, particularly in residential neighbourhoods with detached houses and open views. In these most exclusive areas of the district of Guarda, there are also refurbished manor houses and properties located in elevated areas, with wide views over the territory. This combination of centrality and privacy makes the city a relevant option for those seeking comfort and accessibility. Douro Superior reinforces exclusivity in the district In the northeast of the district, Vila Nova de Foz Côa and Figueira de Castelo Rodrigo stand out among the most exclusive areas of the district of Guarda. Here, estates with vineyards and olive groves predominate, often linked to tourism and agricultural projects. These most exclusive areas of the district of Guarda benefit from proximity to the Douro Superior, offering striking landscapes and large-scale properties. For those looking to invest or live with a stronger connection to nature, this territory presents distinctive opportunities in the real estate market. For those inspired by these unique locations, it is worth exploring the available opportunities and discovering homes in the Guarda district through the SUPERCASA property portal, where you can find properties that combine space, authenticity, and quality of life.
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