Portugal’s housing market reached a new record in September, with asking prices rising 7.9% compared with the same month in 2025. The increase adds to wider pressure on buyers across the European Union, where residential property prices also continued to climb in the second quarter of 2026.
Data from property portal Idealista showed that the median asking price for homes in Portugal reached €3,228 per square metre in September. Prices were 0.6% higher than in August, marking another monthly increase.
Portugal house prices reach a new September high
The latest figures indicate that Portugal’s housing affordability challenge is continuing despite significant differences between regions. Annual price growth was strongest in several district capitals and autonomous regions outside Lisbon and Porto.
- Vila Real recorded an annual increase of 17.8%.
- Leiria prices rose by 17.6%.
- Beja recorded growth of 14.4%.
- Faro increased by 14.3%.
- Guarda rose by 14.0%.
The Centre region was identified as the fastest-growing part of the country. Other locations also recorded increases, including Aveiro at 9.3%, Setúbal at 9.1%, Porto at 9.0% and Castelo Branco at 9.0%.
Prices also increased in the autonomous regions. Ponta Delgada recorded annual growth of 7.1%, while Funchal rose by 5.3%.
Lisbon remains Portugal’s most expensive market
Lisbon remained the most expensive city in Portugal for homebuyers. The capital’s median asking price reached €6,256 per square metre in September.
The Lisbon region was also the country’s costliest area overall, with a median price of €4,501 per square metre. Although Lisbon’s annual increase of 4.4% was more moderate than the rises recorded in several other regions, the high starting price means that purchasing a home there remains particularly demanding.
The Idealista figures are based on advertised property prices rather than completed transaction prices. They therefore provide an indication of seller asking prices and market direction, but do not necessarily show the final amount paid by buyers.
Portugal records one of the EU’s sharpest housing increases
Portugal’s housing market is also standing out in European Union comparisons. According to the latest Eurostat figures, residential property prices in Portugal rose by 14.2% in the second quarter of 2026 compared with the annual average for 2025.
That was the second-largest increase recorded among EU member states during the period. Bulgaria registered the highest rise at 14.3%, while Lithuania followed Portugal with growth of 12.8%.
Not every national market moved higher. Finland recorded a 1.5% decline in house prices, while France saw prices fall by 1.4% over the same comparison period.
EU house prices and rents continue to rise
Eurostat reported that house prices across the EU increased by 4.7% in the second quarter of 2026 compared with the same quarter of 2025. Rents rose by 3.0% over the same period.
Quarterly growth was also positive. Compared with the first quarter of 2026, EU house prices increased by 1.2%, while rents rose by 0.7%.
The figures show that housing costs are continuing to affect both prospective buyers and tenants. Rising sale prices can make it harder for households to enter the market, while higher rents may increase pressure on people who cannot afford to buy.
What is driving the housing pressure?
The data show the scale and direction of price movements, but they do not by themselves identify one single cause. Housing markets can be influenced by several factors, including the supply of available homes, demand from residents and investors, construction costs, mortgage conditions, employment trends and population movements.
Portugal’s regional figures also suggest that price growth is not confined to the capital. Some smaller district capitals recorded much faster annual increases than Lisbon, although their absolute prices remain lower.
For buyers, the combination of rising prices and regional variation makes location increasingly important. A home in Lisbon or the wider Lisbon region commands a substantially higher asking price per square metre than properties in many inland areas, even where annual growth elsewhere has been stronger.
What the figures mean for Portugal and Europe
For Portugal, the record September asking price points to continued affordability concerns. First-time buyers may face greater difficulty saving for a deposit, while existing homeowners may see the value of their properties increase.
For the wider European housing market, Eurostat’s figures indicate that price and rent pressures remain present across the EU, although the experience differs considerably between member states. The data do not mean that every country is facing the same conditions, and national figures can conceal major differences between cities and regions.
The next official comparisons will help show whether Portugal’s strong annual increase is sustained and whether the gap between the country’s regional markets narrows or widens.
Conclusion
Portugal house prices reached a new record in September, with national asking prices up 7.9% year on year and Lisbon remaining the country’s most expensive market. Eurostat data also placed Portugal among the EU’s fastest-rising housing markets in the second quarter of 2026. The key issue for households now is whether supply, incomes and financing conditions can keep pace with continued property and rental costs.
