The price of houses in Portugal continues to rise, with significant increases in several cities and regions of the country. According to data from the Real Estate Portal idealisticthe value of housing increased in 18 district capitals in the last year, highlighting Beja (21%), Setúbal (16.9%) and Vila Real (16.6%) such as the cities where prices have grown.
Lisbon remains the most expensive city to buy home, while guard, Castelo Branco and Portalegre have the lowest values per square meter. But what are, after all, the most affordable places to purchase a property?
Districts and cities where houses prices have risen the most
According to the report, housing prices increased in most Portuguese cities in February 2025. In addition to the aforementioned Beja, Setúbal and Vila Real, expressive climbs were registered:
- Santarém (15,5%)
- Évora (15,3%)
- Bragança (13,1%)
- Pontal (12,6%)
- Leiria (12,2%)
- Funchal (9,8%)
- Coimbra (9,1%)
- Braga (8,9%)
- Portalegre (7,7%)
On the other hand, prices were practically stable in Aveiro (0.1%) and Lisbon (-0.4%), with the capital being the only city where there was a slight descent in the value of housing.
Where to buy home is more expensive?
Lisbon remains the most expensive city to buy home, with an average price of 5,515 euros/m². Porto (3,643 euros/m²) and Funchal (3,528 euros/m²) are followed. Other cities with high prices include:
- Faro – 3.069 euros/m²
- Sethubal – 2.673 euros/m²
- Aveiro – 2.475 euros/m²
- Évora – 2.370 euros/m²
- Pontal – 2.052 euros/m²
At the district level, Lisbon leads the list of the most expensive places to buy housing, with an average value of 4,167 euros/m², followed by Faro (3,533 euros/m²) and Madeira Island (3,260 euros/m²).
The cheapest cities to buy home in Portugal
For those looking for more affordable prices, the cheapest cities to buy home in Portugal are:
- Guard – 851 euros/m²
- Branco Castle – 893 euros/m²
- Portalegre – 903 euros/m²
- Bragança – 1.038 euros/m²
- Beja – 1.104 euros/m²
- Santarém – 1.401 euros/m²
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In district terms, the lower values per square meter are:
- Guard – 721 euros/m²
- Portalegre – 828 euros/m²
- Branco Castle – 901 euros/m²
- Bragança – 903 euros/m²
- Village – 1.063 euros/m²
- São Jorge (Azores) – 1.129 euros/m²
- Viseu – 1.155 euros/m²
- Beja – 1.238 euros/m²
Trends and forecasts for the real estate market
The increase in house prices in Portugal reflects the growing demand for housing, driven by factors such as tourism, foreign investment and the shortage of supply in some zones.
Nevertheless, some regions continue to offer opportunities for those looking for more affordable housing.
Price stability in Lisbon and Aveiro may indicate a slowdown in the growth of the real estate market in areas of greater population density, while smaller cities and some islands of the Azores and Madeira still have descents in housing values.
With increasing pressure on prices, experts warn that the market can continue to record increases in various regions, especially in those where demand still exceeds the offer.
Conclusion
Buying home in Portugal has become a challenge due to price increases, but there are still affordable zones for those looking to invest in the real estate market.
Cities such as Guarda, Castelo Branco and Portalegre remain viable options to acquire lower prices, while Lisbon, Porto and Faro remain the most expensive locations.
The Portuguese real estate market is constantly evolving, and tracking price trends can be essential for those who want to buy home in the coming months.
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