Portugal housing prices double in over 150 municipalities

A Banco de Portugal study published in the June Boletim Económico finds that median house prices per square metre more than doubled (over 200% growth) between 2017 and 2025 in 157 Portuguese municipalities, with the sharpest increases in the Greater Lisbon area, the Porto metropolitan region and the Setúbal Peninsula. The municipalities of Sintra, Seixal, Barreiro, Moita and Setúbal recorded the highest jumps.

Rent levels also surged, more than doubling in 23 municipalities, notably Grândola, Sines and Moita. The report notes that price growth was strongest in areas where purchase prices were previously lower relative to rents, prompting demand to shift toward more affordable suburbs of Lisbon and Porto. Consumer expectations remain bullish, with a projected 7% rise in house prices in 2026 nationwide and higher optimism in the North and Lisbon metro zones. Although bank credit accounted for less than 60% of house‑purchase funding, loan growth accelerated from early 2024 as interest rates fell and a state‑guarantee scheme for young buyers took effect.