Average Portugal House Prices in 2026: What the Latest Data Reveals

Property prices in Portugal have been rising so rapidly over the last few years that it can be hard to keep track of the latest figures. 

But for anybody considering buying property in Portugal, it’s essential to be well-informed about the latest average house prices, the most and least expensive areas, and the growth trends of the market in early 2026.

Portugal Homes collects the most important information on house prices in Portugal in 2026 so that you can have a clear view of the market without having to sift through the data yourself.

Statistics Portugal (Instituto Nacional de Estatística, INE), the government office for national statistics in Portugal, presented its latest local-level house price statistics (based on transaction data) on the 17th of July, 2026, with results updated to Q1 2026.

We’ve examined the latest statistics and crunched the numbers to bring you this guide on what the newest data reveals about house prices in Portugal as we move through 2026. 

INE’s latest House Price Index, published on published 22 September 2026, shows that Portuguese house prices rose by 16.5% year-on-year in Q2 2026.

Existing homes recorded the strongest increase, rising by 18%, while new homes rose by 12.3%.

Compared with the previous quarter, the index increased by 3.6%. At the same time, transaction volumes fell by 6.4% year-on-year, with 40,142 dwellings sold.

The national HPI is now available through Q2 2026, while INE’s more detailed local-level price-per-square-metre statistics remain updated through Q1.

Here are the most important takeaways according to INE’s local-level house price statistics, based on actual transaction data:

The national median property price across Portugal was €2,337/m² in Q1 2026, according to INE’s most recent local-level data available as of July 2026.

After several years of post-pandemic acceleration, Portugal continues to register strong annual house price acceleration, with the year-on-year growth rate increasing from 17.5% in Q4 2025 to 19.8% in Q1 2026. 

Property in these sought-after areas of the country fetch prices well above the national average: The average housing prices for all the above-mentioned regions increased from Q4 2025.

Several different factors are responsible for these record prices:

Beiras e Serra da Estrela remained the region with the lowest median price in Portugal in Q1 2026, at €734/m², also recording the lowest annual increase at 5.2%.

This region, located in the east of the country, along the border with Spain, is mountainous and sparsely populated. Limited essential infrastructure and transport links make this area less attractive, especially for foreign buyers. While the region saw significant growth in the previous quarter, prices there seems to have stabilised in Q1 2026.

In Q1 2026, the top NUTS 3 sub-region for year-on-year price growth was:

It replaces the Setúbal Peninsula, the previous holder of the title, which is still among the fastest-growing regions at +29.9%. Both of these regions act as spill-over areas for Lisbon as increasing number of buyers find themselves unable to afford property in the capital, driving up house prices in surrounding regions.

At the top end, two of the country’s most expensive regions also posted growth rates above the national average, including:

This is a useful reminder that Portugal’s market isn’t moving as one — price growth is widespread, but the growth in prices still concentrates heavily in the metropolitan hubs and coastal belts. 

In Q1 2026, house prices in all but 2 of the 24 municipalities with more than 100,000 inhabitants in Greater Lisbon, the Setúbal Peninsula, and the Porto Metropolitan Area recorded median house prices above the national average, with all but one, Matosinhos (-12%), showing year-on-year growth.

Among the larger municipalities, several locations recorded both strong values and stronger-than-average growth. Notably:

However, at the very top of the housing pricing table in Q1 2026, the leaders remain the same:

Q1 2026's statistics found some of the highest growth rates not just in the major urban centres that usually dominate discussions of property price increases in Portugal but instead in more rural, “secondary” regions outside of major cities.

The report shows that buyers with tax residence abroad continued to purchase at higher median prices than buyers resident in Portugal.

In Q1 2026:

The gap was particularly visible in Portugal’s two largest metropolitan markets:

These figures do not necessarily mean that foreign buyers are paying more for comparable properties. They are more likely to reflect differences in the types of homes purchased and the markets in which those purchases take place.

Foreign buyers tend to concentrate on Portugal’s most expensive locations, particularly Greater Lisbon, the Algarve, Madeira and the Porto Metropolitan Area. These markets typically offer stronger international transport links, established expatriate communities and greater appeal as second-home or investment destinations.

They may also be more likely to buy new-build, renovated or higher-specification properties, which generally command higher prices per square metre. Differences in purchasing power can further influence the result, as overseas buyers may have larger budgets and target property segments that are less accessible to many domestic purchasers.

The figures therefore show a clear difference in buying patterns, rather than proving that foreign and national buyers are being charged different prices for equivalent homes.

Over full year of 2026, INE reported that 23 of 24 large municipalities recorded higher prices for new dwellings than for existing dwellings. The exception was Amadora, where existing homes were €497/m² more expensive than new.

Among large municipalities:

The largest gap between new and existing dwellings among large municipalities was found in Lisbon, where new homes sold at €6,226/m² versus €4,896/m² for existing properties, a difference of €1,330/m².

Why does this gap exist? There are several reasons:

If you’re comparing new and older houses in Portugal, make sure you know what issues to look for when viewing them.

It is too early to say with certainty how Portugal’s housing market will develop over the rest of 2026. However, the latest figures point to several trends worth watching.

Overall, the Q1 figures suggest a market in which prices remain strong despite fewer completed sales. Whether that continues will depend on supply, financing conditions, buyer demand and the pace at which new housing reaches the market.

There are many reasons to be interested in purchasing property in Portugal, but the continued strength and promising growth of the housing market is one of the most critical motivators.

Here is a brief overview of the steps involved in buying a property in Portugal:

An important thing to understand about buying property in Portugal is the extensive legal process and paperwork that comes with it. 

While it is possible to undertake this on your own, having legal representation makes the process easy, hands-off, and wrinkle-free, as well as potentially reducing costs that might be incurred by the complicated and often confusing bureaucratic process.

They say the best time to plant a tree is yesterday and the next best time is today. The same might well be said about investment in Portuguese real estate. 

A property in Portugal bought in 2025 would already be offering an average increase in value of more than 16% just a year later. 

If you’re interested in making an investment in Portuguese real estate, Portugal Homes can help you through every step of the process. Get in touch to find out how you can access one of the world’s fastest-growing property markets.