Real estate values have risen by a substantial 7.4% in the recent market trend.
Buying a House in Portugal: A Breakdown of Costs and Trends
The Current State of the Housing Market
As we delve into May 2025, the median cost of buying a house reached an eye-watering 2,851 euros per square metre (euros/m2), according to idealista's price index, reflecting a staggering annual increase of 7.4%. Keeping pace with April's numbers, quarterly growth stood at 4%.
Regional Differences
In May, the cost of living rose significantly in 15 district capitals, with Beja leading the pack at a massive 28.8% increase, followed closely by Ponta Delgada, Setúbal, and Santarém. Interestingly, prices also spiked in Guarda, Coimbra, Faro, Évora, Funchal, Braga, Porto, Leiria, Portalegre, Lisbon, and Bragança. Conversely, the cost of housing remained practically static in Aveiro, while it dipped in Viseu, Viana do Castelo, and Castelo Branco.
Portugal's Costliest Cities
Lisbon holds the crown as the country's most expensive city for homebuyers, boasting a median cost of 5,720 euros/m2. Porto comes in second with 3,768 euros/m2, followed by Funchal in third (3,574 euros/m2). Further down the list, Faro (3,289 euros/m2), Setúbal (2,800 euros/m2), Aveiro (2,526 euros/m2), Évora (2,411 euros/m2), Ponta Delgada (2,174 euros/m2), Coimbra (2,079 euros/m2), Braga (2,049 euros/m2), Viana do Castelo (1,887 euros/m2), and Leiria (1,613 euros/m2) complete the top 10.
Budget-Friendly Options
If you're on a tighter budget, consider checking out Portalegre (840 euros/m2), Castelo Branco (893 euros/m2), Guarda (914 euros/m2), Bragança (977 euros/m2), Beja (1,192 euros/m2), Santarém (1,415 euros/m2) and Viseu (1,471 euros/m2). These cities offer more affordable housing options for potential buyers.
A Sneak Peek at Portugal's Property Prices
While the data for all cities is not available, some cities, like Lisbon and the Algarve region, are notorious for their high property prices. Key areas in the Algarve, such as Ferragudo, Carvoeiro, Vilamoura, Vale do Lobo, Quinta do Lago, Faro, and Lagos, are particularly sought after. Funchal, Located in the autonomous region of Madeira, also holds higher prices, with a 6.5% increase in May. However, when it comes to the most budget-friendly cities, Viseu, Viana do Castelo, and Castelo Branco emerge as more affordable options, with prices decreasing and remaining practically stable, respectively.
In the context of recent property market trends in Portugal, investigating the invest-ment potential in real-estate could yield significant finance-related returns, particularly in budget-friendly cities such as Portalegre, Castelo Branco, and Guarda, where house prices are relatively inferior to costlier cities like Lisbon or Funchal.
Given the continuous upward trend in the housing market, staying updated on news regarding Portugal's property prices, especially in popular regions like the Algarve and Madeira, could be key for those looking to make informed decisions when investing in Portugal's real-estate market.
