73% plunge, 100% exit: Homes under €200k in Portugal nearing extinction
Analysis from the Idealista portal reveals a profound transformation in Portugal's real estate market between 2020 and 2025.
Housing in Portugal is becoming increasingly unaffordable, with prices rising far faster than wages, and affordable homes gradually disappearing from the market. According to a study released this Thursday by Idealista, the number of homes priced below €200,000 dropped by 73% between 2020 and 2025, leaving many families with almost no options within their budget. Even in the €200,000–€300,000 price bracket, supply declined by 32%.
Within five years, properties under €200,000 have nearly vanished in several regional capital cities. Even in the next price segment (€200,000–€300,000), housing supply fell by 32%. Conversely, listings priced between €400,000 and €500,000 increased by 37%, while those above €500,000 surged by 42%.
This trend is widespread but most pronounced in cities like Funchal, Faro, Lisbon, Ponta Delgada, Porto, Setúbal, Aveiro, and Braga—where homes under €200,000 have almost disappeared from the market in a short period. Share of low-priced homes in summer 2025 (vs. 2020): Funchal: 1% (over 25% in 2020) Lisbon: 2% (over 10% in 2020) Faro: 3% (over 10% in 2020) Porto: 5% (over 25% in 2020) In summer 2025, this segment accounted for just 1% in Funchal, 2% in Lisbon, 3% in Faro, and 5% in Porto—far below levels seen five years earlier. The portal noted: 'Just five years ago, in summer 2020, these segments represented over 25% of the market in Funchal and Porto, and over 10% in Lisbon and Faro.'
By contrast, properties priced above €500,000 now dominate the market in Funchal, Faro, and Lisbon, accounting for more than 60% of listings. Even in inland cities where affordable housing still holds a significant share, high-end properties are steadily increasing. The housing supply is showing a clear 'inverted pyramid' trend: sharp declines in low- and mid-range homes, while luxury listings surge. Declines: ≤€200,000: -73% €200,000–€300,000: -32% €300,000–€400,000: significant drops in multiple cities Increases: €400,000–€500,000: +37% ≥€500,000: +42% Some cities saw explosive growth in the 'luxury segment': Braga: +677% Castelo Branco: +833% Funchal: +179% Porto: +261% According to Idealista, the market clearly shows a trend: affordable housing is vanishing, and Portugal is shifting toward a luxury-dominated landscape.
Structural changes in Portugal’s real estate market have become increasingly evident in recent years. The latest data once again highlights the clear trend of 'rapid disappearance of affordable housing and overall price escalation,' reflecting long-term impacts from supply-demand imbalances, rising construction costs, and strong investment demand. This means higher entry barriers—especially in popular cities like Lisbon, Porto, and the Algarve, where choices have drastically shrunk. At the same time, it underscores Portugal’s continued appeal: market fundamentals remain solid, and properties retain strong potential for value retention and appreciation. Amid structural supply-demand imbalances, early positioning offers greater control over market opportunities.