The average price of a house in Portugal is close to 250 thousand euros, a new historical high. At the beginning of the AD Government’s mandate, the value was 203 thousand euros.
Housing prices in Portugal continue to rise at a record pacedespite successive government measures designed to respond to the crisis in the sector. Data released this Tuesday by the National Statistics Institute (INE) show that, in the third quarter of the year, the housing price index increased 17.7% in year-on-year terms, the highest growth since the beginning of the statistical series in 2009. This is the sixth consecutive quarter of acceleration, contrary to the slight slowdown observed throughout 2023.
Since the presentation of the “Build Portugal” government package, during the first government led by Luís Montenegro, house prices increased by around 27%leading the national average price to approach 250 thousand euros, a new historic high. At the beginning of the mandate, the average value was around 203 thousand euros.
The executive’s strategy has been based on increasing supply through the construction of thousands of homes with public support and tax incentives for landlords to promote renting, but the results so far point to a worsening in prices, according to the report.
Although the program’s central objective is to reinforce supply, the first measures implemented focused mainly on demandsuch as the exemption from IMT and stamp duty and the creation of a public guarantee for housing credit aimed at young people up to 35 years of age. These initiatives led to an increase in demand without an equivalent increase in supply, contributing to the rise in prices.
In 2025, the Government presented a new package of measuresmostly of a fiscal nature and aimed at owners, including the reduction of IRS on rents, the reduction of VAT for housing construction projects at prices considered moderate and exemptions from capital gains in cases of reinvestment.
However, available data indicates that, since the announcement of “Construir Portugal”, the increase in prices was almost double that recorded in a comparable period prior to the implementation of the measures.
