Portugal Housing Prices Reach Record High: Up 17.6% in 2025
Portugal’s real estate market recorded a historic surge in 2025. According to the latest Housing Price Index (IPHab) released by the National Statistics Institute (INE), national housing prices increased by 17.6% year-on-year, up 8.5 percentage points compared to 2024, marking the highest increase on record.
This upward trend continued to accelerate throughout the year. In the fourth quarter of 2025 alone, housing prices rose by 18.9% year-on-year, an increase from the previous quarter, indicating a sustained period of accelerating price growth.
From a market structure perspective, existing properties were the main driver of price increases. In 2025, prices for existing homes rose by 18.9%, significantly outpacing new housing, which increased by 14.2%. This gap widened further in the fourth quarter, with existing homes rising by 20.9%, compared to 13.7% for new builds. This reflects strong demand for existing housing amid relatively limited supply.
At the same time, the property transaction market remained highly active. Approximately 170,000 homes were sold in 2025, representing an 8.6% increase year-on-year and setting a new record. Existing homes continued to dominate the market, accounting for over 80% of total transactions.
In terms of transaction value, the total volume of real estate transactions reached €41.2 billion in 2025, an increase of 21.7% compared to the previous year. Notably, the value of existing home transactions grew by approximately 25%, highlighting a continued concentration of capital in the resale market.
Household buyers remained the primary driving force of the market. Around 87.5% of all transactions were carried out by households, accounting for nearly 87% of total transaction value, both figures showing further increases compared to 2024. This indicates that demand continues to be largely driven by owner-occupiers and long-term investors, providing a solid market foundation.
Regionally, the Greater Lisbon area remained the most significant real estate market, accounting for approximately 30% of total transaction value, followed by the Northern region with around 25%. Meanwhile, activity in central and western regions has been gradually increasing, suggesting a broader geographic distribution of demand.
Although transaction volumes showed a slight decline in the fourth quarter of 2025, the overall market remained dynamic, with transaction values continuing to rise, indicating strong underlying support for price growth.
Overall, amid limited supply and sustained demand, Portugal’s real estate market in 2025 demonstrated simultaneous growth in both prices and transactions. For investors focusing on European markets, these trends highlight the resilience and long-term growth potential of the Portuguese property sector.
Reference link: https://jornaleconomico.sapo.pt/noticias/preco-das-casas-aumentou-176-em-2025/?utm_source=SAPO_HP&utm_medium=web&utm_campaign=destaques
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