Lisbon housing market sees modest price drop and rental demand shift to suburbs

In the second quarter of 2026, the average price per square metre for homes in Lisbon fell 3.3% to €5,660, matching a 3.4% decline across Portugal. The Housing Accessibility Index improved, rising from 1.67 to 1.91 for a typical two‑bedroom apartment and from 1.25 to 1.34 for a three‑bedroom house, reflecting reduced mortgage pressure. Average monthly mortgage payments for a two‑bedroom apartment stand at €1,425, consuming about 52% of a couple’s income, while a three‑bedroom house requires €2,039, or roughly 75% of the same household’s earnings.

Rental data shows Lisbon dropping out of the list of the most sought‑after municipalities for rentals. Peripheral areas such as Amadora, Trofa and Vila Franca de Xira rank highest, with median rents ranging from €983 in Alenquer to €1,651 in Sintra. Meanwhile, interior towns like Pinhel, Moura and Campo Maior are gaining traction, indicating a broader shift of rental interest away from the capital towards more affordable regions.