House Prices in Portugal Soar 16.3% in the First Quarter of 2025
- Redação Mudei e Agora
- Jun 25
- 2 min read
In the first quarter of 2025, the Portuguese real estate market saw prices rise by 16.3% compared to the same period the previous year, the highest level in recent years.
According to data from idealista/news, 41,358 homes were sold in the quarter — a drop of just 0.2% compared to the same period in 2024 — which shows that demand remains very strong, despite the significant rise in prices.
This increase is a symptom of several factors combined:
Heated demand, especially in Lisbon, Porto and the Algarve, despite the end of initiatives such as the “Golden Visa” and the effects of higher interest rates;
Limited supply, with builders and developers moving forward with few new projects due to high construction costs (land, materials, labor);
Persistent foreign investment, even with more restrictive rules, increasing pressure on higher-value segments;
High inflation in the construction sector, directly reflected in final sales prices.
The scenario reveals an increasingly segmented market, from which questions arise about its accessibility. Rising prices are putting pressure on the middle and lower classes, reducing opportunities for many families to access their own homes, and signs of overheating are beginning to emerge.
On the public policy side, the challenge lies in strengthening the affordable supply, with support programs for construction and renovation, and incentives for new residential projects. This does not directly include possible tax measures on foreign investors or specific support for young buyers.
From the buyers' point of view, the recommendation is to carefully analyze the amount of credit available, future rates that may impact the cost of housing, and compare options between consolidated areas and peripheral areas with better cost-benefit.
Source: idealista/news
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