The housing market in Portugal continues to show significant variations in prices, reflecting marked differences between regions and islands. During the last few months, several cities and districts have recorded considerable increases, maintaining the interest of investors and buyers, while also highlighting the disparities that exist in the country. Lisbon continues to be the most expensive city in the country to buy a house, but the city in second place in the table may surprise you.
According to the newspaper Diário de Notícias, Funchal stands out as the second most expensive city to buy a house in Portugal, just behind Lisbon. According to the same source, prices in Madeira rose 15% in October this year, while in Porto Santo the increase reached 29.9%. The publication adds that, at a national level, the average increase was 8.7% compared to the same month in 2024, with the median purchase value standing at 2,970 euros per square meter, and the quarterly variation at a national level was 1.5%.
Capitals and islands with the highest appreciation
The same source states that all district capitals and autonomous regions analyzed recorded increases in October. Beja led with 30.6%, followed by Santarém (27.8%) and Portalegre (24.1%). Next are Guarda (21.0%), Setúbal (19.2%), Ponta Delgada (12.6%) and Funchal (12.2%). Cities such as Évora, Viana do Castelo, Coimbra and Braga recorded increases of between 10% and 12%, while Bragança showed a decrease of 3.2%.
According to , Lisbon remains the most expensive city in the country, at 5,886 euros per square meter, followed by Funchal (3,907 euros/m²) and Porto (3,844 euros/m²). Faro comes in fourth place, with 3,370 euros/m². The publication adds that Setúbal, Aveiro, Évora and Ponta Delgada have average values between 2,364 and 2,964 euros/m², completing the ranking of cities with the highest prices.
Differences by districts and autonomous regions
The newspaper explains that, in the analysis by districts and islands, the biggest increases occurred in Porto Santo (29.9%), Terceira (21.5%), São Miguel (20.5%) and São Jorge (20.2%). The same source states that Santarém (19.6%), Setúbal (18.5%), Pico (17.3%) and Beja (16.1%) also recorded above-average increases. According to the same source, the lowest prices remain in Viseu (1,252 euros/m²), Vila Real (1,088 euros/m²), Castelo Branco (995 euros/m²) and Guarda (812 euros/m²).
In terms of value per square meter, the Lisbon district continues to lead with 4,487 euros/m², followed by Faro (3,849 euros/m²), Madeira Island (3,693 euros/m²) and Porto Santo (3,226 euros/m²). The publication adds that Setúbal, Porto, São Miguel, Aveiro and Leiria complete the list of the most valued areas.
Valuation of the islands
Over the past 12 months, house prices have increased in every region of the country. The Autonomous Region of the Azores recorded the highest annual variation (20.8%), followed by Alentejo (18.7%), Madeira (15.6%), Center (11.0%), Lisbon Metropolitan Area (9.6%), Algarve (9.3%) and North (6.5%).
The panorama highlights the strong appreciation of some regions and islands, with Funchal surpassing Porto and Faro and consolidating the trend of increasing prices in the Portuguese real estate market.
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