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 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 23 October, 2026, with results updated to Q2 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 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.

Both the national House Price Index and INE's more detailed local-level house-price statistics are now available through Q2 2026.

Here are the most important takeaways from INE's latest local-level house price statistics, published on 23 October 2026:

The national median property price across Portugal reached €2,445/m² in Q2 2026, according to the latest local-level statistics published by INE on 23 October 2026.

This represents an increase of 4.6% compared with the previous quarter and 18.4% compared with Q2 2025. Although prices continue to rise, the annual growth rate has eased slightly from the 19.8% recorded in Q1 2026.

Property prices in Portugal's most expensive regions remain considerably above the national median:

Four of these five regions recorded higher median prices than in the previous quarter. Madeira was the exception, with its median declining slightly from €2,863/m² in Q1 2026.

Several different factors are responsible for these record prices:

Beiras e Serra da Estrela remained the sub-region with the lowest median house price in Portugal in Q2 2026, at €759/m².

Located in the country's interior, near the Spanish border, this mountainous and sparsely populated region offers considerably more affordable property prices than Portugal's major cities and coastal areas. However, prices have also risen here compared with the same period in 2025.

Terras de Trás-os-Montes recorded the country's lowest year-on-year price growth, at 5.2%.

In Q2 2026, Médio Tejo recorded Portugal's highest year-on-year increase in median house prices, at 25.4%.

The Oeste region followed with growth of 24.0%, while Lezíria do Tejo, which had led the previous quarter's rankings, recorded an increase of 23.9%.

The Setúbal Peninsula also continued to experience substantial growth, with prices rising by 22.2% year-on-year. Greater Lisbon recorded an increase of 18.4%, matching the national average.

These figures suggest that some of Portugal's strongest price increases are occurring outside its most expensive urban centres. However, prices continue to rise across the country, with all 26 NUTS 3 sub-regions recording annual increases in Q2 2026. 

In Q2 2026, house price growth accelerated in 10 of Portugal's 24 municipalities with more than 100,000 inhabitants, compared with 11 in the previous quarter.

Loures and Matosinhos recorded the largest accelerations in their year-on-year growth rates, increasing by 9.7 and 9.5 percentage points, respectively.

Meanwhile, several municipalities outside Portugal's most expensive metropolitan markets continued to record substantial annual price increases:

The most expensive municipalities remained unchanged:

Although all three remain among the country's most expensive property markets, Lisbon and Oeiras recorded annual growth rates below the national average. 

The Q2 2026 figures show that some of Portugal's strongest house price increases continue to occur outside the major urban centres that usually dominate discussions of the property market.

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

In Q2 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.

According to INE's figures for the 12 months ending June 2026, new homes recorded higher median prices than existing homes in 22 of Portugal's 24 municipalities with more than 100,000 inhabitants.

The exceptions were Amadora, where existing homes were €576/m² more expensive than new homes, and Santa Maria da Feira, where the difference was just €2/m².

Among large municipalities:

The largest gap between new and existing dwellings among large municipalities was found in Lisbon, where new homes sold at €6,434/m² versus €5,030/m² for existing properties, a difference of €1,404/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.

Portugal's property market continued to record strong price growth in Q2 2026, with the national median reaching €2,445/m², an increase of 18.4% compared with the same period in 2025.

Although annual price growth has slowed slightly from the previous quarter, property prices continue to rise across the country. All 26 NUTS 3 sub-regions recorded year-on-year increases, with Médio Tejo, Oeste, and Lezíria do Tejo among the fastest-growing areas.

Greater Lisbon and the Algarve remain Portugal's most expensive regions, while comparatively affordable areas in central and inland Portugal continue to offer alternatives for buyers working with smaller budgets.

At the same time, the 9.0% annual decline in property transactions suggests a market where rising prices are being accompanied by fewer sales. For prospective buyers, understanding local market conditions remains essential, particularly as prices and growth rates vary considerably between regions and municipalities.

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.