Once again, the Portuguese real estate market has shown proven resilience with medium prices for housing keeping its appreciation and the number of family dwellings sales increasing. Here’s what this could mean for future buyers.
New Data, Old Trend: Property in Portugal Remains Valuable
New data released by Statistics Portugal (INE) proves that buying property in Portugal remains a profitable move. In the 4th quarter of 2024, house prices accelerated in 19 of the 24 most populous municipalities, with the median house price increasing by 15.5% when compared to the 4th quarter of 2023. Still, the number of family dwelling sales in Portugal increased by 34.2% in the same period, showing amazing market resilience and strong demand.
In the sub-regions of the Greater Lisbon and Porto Metropolitan Areas, the median transaction price per square metre paid by buyers with foreign tax residency was higher than that paid by domestic-tax-resident buyers and had an increase of 13.9% when taking into account the same quarter of the previous year.
This only proves that international buyers keep seeing amazing value in buying property in Portugal’s main locations and are eager to secure their investments before any new measures affecting non-EU residents who wish to buy a real estate asset in the region are put into effect.
However, the interesting tax incentives of the new NHR 2.0 may bring a shift in the upcoming periods, since the number of tax residents is bound to have a visible increase in Portugal.
At the end of the day, all this data demonstrates that the Portuguese real estate market is showing no signs of slowing down and is still an amazing investment for both national and international buyers.
How to Turn Data into Dividends
Now that you have the data to back your decision to invest in the Portuguese real estate market, here are a few ways you can profit from this information.
1. Invest in a Centrally Located Apartment in Lisbon
Investing in an apartment in central Lisbon offers a solid blend of capital-growth momentum and scarce, trophy-location supply: the city’s median sale price already sits above €4,000 per m², yet prices continue to climb with Portugal’s national House Price Index accelerating to an 11.6% year-on-year rise in Q4 2024—the fastest pace in two years, according to Statistics Portugal.
With startups clustering around the capital, tight new-build pipelines and record tourism inflows, a centrally located Lisbon flat can position you at the confluence of Portugal’s strongest demographic, economic and supply-demand favourable currents.
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2. Buy a Villa in the Algarve
Buying a villa in the Algarve, the world's leading beach destination in 2024, puts you at the heart of Portugal’s strongest leisure-driven property market, where demand comfortably outruns supply. Statistics Portugal’s figures show the region’s average dwelling price climbed 10.1% year-on-year in October 2024—well above the national median. Tourism is a perpetual catalyst: the Algarve captured 26.4 % of all Portuguese overnight stays in 2023, generating high, year-round rental occupancy for villa owners. However, since residential building licences across Portugal fell 1.4 % in the first three quarters of 2024, future supply will soon be limited, which leads investors to act fast to secure better pricing and elevate the quality of the listings. Taken together—robust price momentum, tourism-fuelled cash flow, and constrained new construction—these dynamics make a well-located Algarve villa a compelling income-generating asset.
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3. Secure a Plot of Land
Securing a plot of land in Portugal is a leveraged play on the country’s deep-seated housing undersupply and fast-rising property valuations. With the construction-cost index rising 3.4 % in November 2024, driven by an 8.1 % jump in labour costs, locking in land today can be a smart move to capture future margins before build expenses move higher.
Also, investing in land in Portugal has become more attractive following the enactment of the new Lei dos Solos (Land Law) which introduces a simplified process for reclassifying rural land as urban. This change enhances the potential value of land parcels by expanding their development possibilities and grants municipalities greater autonomy in approving these reclassifications, streamlining the approval process.
All these factors make land in Portugal a smart and limited investment opportunity—it gains value as property prices rise and gives you the flexibility to keep it, build on it, or sell it when planning approvals increase its worth.
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4. Get Lower Prices in Surrounding Areas
Investing in property just outside Portugal’s main urban hubs—such as Lisbon and Porto—offers excellent value with strong upside potential, as rising prices and limited supply in those areas push buyers and renters outward. According to INE, in Q4 2024, the Lisbon Metropolitan Area recorded a median housing price of €2,502 per m², while nearby Setúbal offered similar access at a far lower €1,538 per m²—an almost 40% discount.
These secondary markets have seen steady price growth and steady demand, especially as remote work and improved transport links make commuting more viable. For you, investing in this option translates to lower entry costs, growing liquidity, and access to tenant pools priced out of the major cities—making these emerging belts a strategic play on Portugal’s broader real estate expansion.
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Let us Grant You First Access to Prime Listings and Unique Opportunities
Either you decide to buy a turnkey property in Lisbon, a plot of land in Óbidos, a cosy apartment in the suburbs of Portugal’s main cities or a big villa in the Algarve, Portugal Homes can assist you every step of the way, not only in finding the best listings but also in giving prime local advice that can be the diving point between buying a property and obtaining a profitable investment in the form of real estate.
Connect with us so we can grant you access to prime listings and early offers that will secure you the best result possible within the Portuguese real estate market.
