Portuguese property price growth slows to 17.8% as transaction volumes decline

For the first time in two years, growth in Portuguese property prices has decelerated, falling from 18.9% to 17.8% in the first quarter of 2026.

This does not signal a price fall: property continues to appreciate, albeit at a slower pace. Notably, older homes are rising in value faster (19.7%) than new builds (12.6%), suggesting investors are gravitating towards ready-made stock.

However, foreign buyers face headwinds: transaction volumes fell 8.7% year-on-year—the second consecutive quarter of decline. Foreign purchasers are buying even less frequently, down 15.6% annually. Regional markets have been particularly hard hit, with Madeira losing a quarter of its transactions.

The aggregate value of transactions remains in growth territory at €9 billion, up 3.2%, yet volumes are contracting. The Portuguese market presents a paradox: prices remain resilient whilst buyer appetite wanes.

Source: Portugal News