Portugal Records Third-Highest House Price Growth in the World
An analysis by the Bank for International Settlements (BIS) shows that Portugal recorded the third-highest annual increase in house prices among the 57 countries and territories included in the study.
According to the latest BIS data, Portuguese residential property prices rose by 16.3% in real terms in 2025, placing the country third in the global ranking.
As reported by Jornal de Negócios, Portugal’s increase was only slightly below that of North Macedonia (20%) and Hungary (16.8%).
Portugal’s annual house price growth significantly exceeded the Eurozone average of 3%.
In the ranking, Croatia came fourth with annual growth of 12%, followed by Spain in fifth place with 9.6%, and Slovakia in sixth place with 8.6%.
Among all countries analysed, only three recorded declines in house prices: Finland (-3.2%), Luxembourg (-2.8%), and Austria (-1.8%).
The BIS figures once again highlight Portugal as one of the fastest-growing residential property markets in Europe. However, unlike some countries where house price growth has been largely driven by credit expansion, Portugal’s recent price increases appear to be more closely linked to structural factors such as limited housing supply and continued population growth.
At the same time, house prices have continued to rise faster than household incomes, making housing affordability one of the country’s most significant challenges. Looking ahead, the market’s trajectory will likely depend on how housing supply evolves, the interest rate environment, and the overall performance of the Portuguese economy.
Reference link: https://www.theportugalnews.com/news/2026-06-01/portugal-records-third-highest-house-price-increase/1032113
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