Portuguese house prices more than double in 157 municipalities over eight years

The Bank of Portugal has published research showing that the sharpest price increases have occurred in the suburbs of Lisbon and Porto, as well as on the Setúbal Peninsula. In five municipalities—Sintra, Cascais, Barreiro, Moita and Setúbal—prices have surged by more than 200 per cent between 2017 and 2025.

The rise has extended beyond purchase prices. Median rental costs per square metre have doubled in 23 municipalities. Notably, demand has shifted towards more affordable areas within the Lisbon and Porto metropolitan regions—locations where housing was cheaper relative to rental yields.

Portuguese consumers remain confident in market growth. Between January and March 2026, they expected annual price increases of 7 per cent—double the eurozone average forecast of 3.7 per cent. Older respondents aged 55–70 predicted growth of 6.3 per cent, whilst younger people aged 18–34 were more cautious, forecasting just 4 per cent. Experts attribute this generational divide to older cohorts' memories of previous inflation cycles, which inform their expectations.

Source: Portugal News