Portugal is growing three times faster than the EU: property prices jumped by 17.9%

While the European market is sluggishly moving forward (the average growth in the EU is only 5%), Portuguese real estate is going up. According to Property Market-Index, the median cost per square meter reached €2025 in October 2025 — nearly four times the European average pace.

What's going on here? The Algarve leads with €3,467 per square meter (+9.3% year-on-year). In the prestigious areas of Lisbon - Avenida da Liberdade, Lapa, Principe Real - new buildings go for € 12,000 per square meter. But stars are rising on the periphery, too: Comporta, Troy and Melidesh on the Alentejo coast saw capital gains of 18% in 2025.

The problem is simple: supply does not keep up with demand. New buildings are rented out only 21,000 per year, while in the early 2000s there were 104,000 annually. There are ten sales per new home. Foreigners are actively investing: in 2024, the volume of investment increased by 51%, and 81% of this is foreign capital.

Experts predict further growth of 5.8% in 2026. Portugal remains one of the strongest markets in Europe for the third consecutive year.

Source: Portugal News