Looking for a high-yield investment in real estate? Portugal continues to be one of Europe’s hottest property markets! New information released by Statistics Portugal (INE) on the 30th of January confirms that the median house price surged to €1,819 per square meter (m²) in 3rd quarter of 2024—a remarkable 10.8% increase compared to the same period in 2023. This robust growth, outpacing the 6.6% rise in Q2 2024, underscores the country’s resilient demand and investment potential, even in times of global economic uncertainty.
For investors seeking high returns, the Alto Alentejo sub-region saw an astonishing 26.3% year-over-year price increase, while Portugal’s premium markets—Lisbon, Porto, Algarve, and Madeira—maintained their luxury appeal and strong price appreciation. Whether you’re eyeing capital growth, rental income, or a second home, Portugal presents an unparalleled opportunity in the European real estate landscape.
Do not miss your chance to invest in a thriving market—reach out to us today to explore the best opportunities in Portugal!
Where Are Portugal House Prices Rising So Fast?
Out of the 24 most populous municipalities, 13 recorded an acceleration in house prices, with Maia leading the charge with a 13.8 percentage point (p.p.) increase. The municipality of Lisbon recorded an increase of 1.9 p.p. and its metropolitan region marked the country’s highest house prices.
Top 5 Most Expensive Cities:
- Lisbon – €4,336/m²
- Cascais – €4,052/m²
- Oeiras – €3,576/m²
- Porto – €2,960/m²
- Funchal – €2,909/m²
Foreign Buyers Continue to Buy Premium Areas
One of the most notable developments in Portugal’s housing market is foreign investment in premium real estate segments. In Lisbon and Porto, transactions by foreign buyers were 63.3% and 54.2% higher, respectively, than those made by residents.
The median price for homes purchased by foreign investors reached €2,415/m², compared to €1,794/m² for local buyers, demonstrating the Portuguese Real Estate international trend. The Algarve, Lisbon, and Madeira continued to attract strong international interest, with median foreign-buyer prices significantly exceeding the national average.
New and Renovated vs. Existing Homes: A Price Comparison
For those eyeing a brand-new or renovated property, be prepared to pay more. Across Portugal, new homes commanded significantly higher prices, with Cascais registering the most dramatic gap:
- New Homes: €5,392/m²
- Existing Homes: €3,846/m²
Other municipalities, such as Lisbon and Porto, also reported substantial differences in pricing between new and pre-owned properties.
What’s Driving the Portuguese Real Estate Market?
Several factors are fuelling this continued growth in Portugal’s real estate sector:
- Strong demand from foreign investors seeking residency and investment opportunities.
- Limited housing supply in prime urban areas.
- Rising Tourism Scene in urban centres such as Lisbon and Porto.
- Stable economic conditions, despite global uncertainties.
Looking Ahead: Market Projections for 2025
While demand remains high, analysts predict that some cooling could occur in certain cities, particularly in Porto, where prices have begun to stabilize. However, for sought-after locations like Lisbon, Cascais, and the Algarve, strong interest from international buyers is expected to keep prices elevated.
For potential buyers and investors, staying ahead of these trends is crucial. Whether you are looking for a vacation home, rental investment, or permanent residence, Portugal's real estate market continues to offer exciting opportunities.
Are you considering a real estate investment in Portugal? Let us guide you through the best opportunities in the market.
Contact our team today!
Read more:
Buying Property in Portugal as a Foreigner in 2025
Portuguese Residency - Can You Still Obtain It by Buying a Property?
Housing Crisis in Portugal - Why choose Project Developments for Future Investments
