House prices more than doubled in 157 Portuguese regions between 2017-2025

House prices more than doubled in 157 regions in Portugal between 2017 and 2025, with the sharpest hikes recorded in the Porto Metropolitan Area, Greater Lisbon and the Setúbal Peninsula, according to the central bank.

In the regions of Sintra, Seixal, Barreiro, Moita and Setúbal, the change in the average price per square metre of homes sold exceeded 200% during the period under review.

This conclusion comes from the study “Housing in Portugal: determinants of supply and dynamics of prices and rents”, published in the June Economic Bulletin released today by the Bank of Portugal.

Meanwhile, the average rent per square metre more than doubled in 23 regions (out of a total of 184 for which data is available), with the regions of Grândola, Sines and Moita standing out, showing increases of over 125% between 2017 and 2024 (the last year for which INE – the national statistics institute – released rent figures).

According to the study, the rise in property prices was more pronounced in regions where purchase prices were lower relative to local rents, with demand shifting “towards relatively more affordable regions” in the Lisbon and Porto metropolitan areas.

By comparison, in the Algarve, “which already stood out with price-to-rent ratios above the national average — heavily influenced by demand from non-residents”, recorded relatively smaller changes over the period in question.

The study also concludes that in Portugal, consumer expectations regarding the behaviour of house prices over the next 12 months “show a rising trend and levels persistently higher than those in the euro area”.

Between January and March 2026, the expectation was for house prices to rise by an average of 7% in Portugal and 3.7% in the euro area, with Portugal showing “a widespread perception that the current moment is favourable for investment” and for investing savings in the housing market.

The authors of the study note the existence of “high diversity in the expectations of domestic consumers, with young people (aged 18–34) anticipating a rise of 4%, on average, and consumers in the 55–70 age group forecasting growth of 6.3%.”

“This difference may be linked to the fact that older generations, with a longer history of observing prices and economic cycles in the property market, tend to anchor their expectations in past inflationary trends,” the document states.

Despite strong price growth, the Bank of Portugal study reveals that the share of bank credit in house transactions has remained below 60% over recent years, with the remainder being covered by the use of own funds for home purchases. However, loan growth has been stronger since the start of 2024, coinciding with the fall in interest rates and also with “the State guarantee scheme” created for young people.

The authors of the study – Nuno Alves, João Amador, Beatriz Amorim, João Bonito Gomes, Cristina Manteu, António Santos and Carlos Santos — also highlight limitations in the statistics on the housing market, considering them “insufficient” to assess “the quantities demanded and supplied at each price”, the “evolution of household preferences”, the “cost structure associated with housing construction” and the “conditions of competition in the sector”.

source: LUSA