Portugal home prices hit record highs amid booming second‑home demand

House prices across Portugal have continued to climb, reaching a new historical peak in June 2026. The idealista index shows an average price of €3,156 per square metre, up 8.9% year‑on‑year, while the rate of increase slowed from the 10.2% recorded in May. Lisbon remains the most expensive market at €6,107/m², with median home prices in the capital exceeding €605,000. Regional data highlight strong gains: Beja recorded a 23.5% rise, the Alentejo region posted an 18.7% increase, and the Algarve led second‑home purchases, with about 60% of transactions there intended for a second residence. Foreign buyers—particularly from the United Kingdom and Ireland—dominate the Algarve market, often paying cash. Nearby destinations such as Comporta are gaining prominence as exclusive second‑home locales, while the West region is also seeing a surge in international interest. Despite signs of a modest slowdown, limited housing supply keeps upward pressure on prices, and no significant correction is expected in the short term.