Structural Shift in Portugal’s Property Market: Decline in Affordable Housing and Expansion of the Premium Segment
Data from Imovirtual reveals that Portugal is undergoing a transformation in terms of the structure of supply.
According to the same source, the first quarter of 2026 saw a “significant reduction in the supply of affordable housing”, whilst the supply of higher-priced properties continues to grow.
In a press release, Imovirtual states that “the percentage of properties under €300,000 fell from 32.3% to 27.6%, highlighting a decline in the proportion of more affordable options.” Conversely, “properties between €500,000 and €1 million increased from 24.6% to 28.6%, whilst the segment above €1 million rose from 10.6% to 12.6%, reinforcing the presence of the premium market.”
“This trend is taking place against a backdrop of widespread price rises. The average price rose by +10.4% in just one year, from €395,000 to €436,000, a growth rate significantly higher than inflation and income growth,” the statement reads.
Imovirtual also notes that the market for more expensive properties is gaining prominence. This is because “properties priced above €880,000 now account for 16.5% of the total supply, compared to 14.0% in the same period of 2025, confirming the growth trend in the premium segment.”
Mixed trends
Price trends are not uniform across the country, and “the premium market shows a strong geographical concentration, with Lisbon, Madeira and Porto accounting for 68.1% of supply in this price bracket. The Lisbon district alone accounts for 28.1% of these properties, followed by Madeira (23.1%) and Porto (16.9%).”
Cascais remains the municipality with the highest prices, “with an average price of €1,350,000, followed by Grândola (€1,300,000) and Calheta, in Madeira (€930,000). Grândola stands out, having recorded an 88.4% increase in value over the past year, reflecting the growing demand for alternative markets with strong potential.”
“In the segment above €1 million, larger property types predominate, with 56.6% of properties being five-bedroom or larger and 33.2% four-bedroom, confirming that the luxury market is associated with larger homes aimed at segments with high purchasing power.”
Sylvia Bozzo, Marketing Manager at Imovirtual, quoted in the press release, notes that “what these figures show is a clear shift in the composition of the property supply in Portugal. The decline in the proportion of homes priced below €300,000, coupled with growing supply in the higher-end segments, limits access to housing for a significant portion of the population and increases pressure on the entire market.”
Imovirtual emphasises that the trend points to an increasingly segmented market “where affordable supply is losing ground, and higher-value properties are gaining prominence. Rather than a generalised rise in prices, the data reveals a structural shift in the way supply is distributed in Portugal.”
Reference link: https://www.theportugalnews.com/news/2026-05-07/the-new-reality-of-the-property-market-in-portugal/1018473
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