Portugal's housing market hits record prices and rising rents

A recent Imovirtual Barometer (May 2026) set the national average asking price for a home in Portugal at €430,500, a level many households cannot afford. The same data show a median rent of €12 per square metre in the Alentejo region, with rents up 15.4 % year‑on‑year in July, marking the end of a six‑month decline.

House‑price growth continued in July 2026, with the Idealista index reporting an 8 % increase over the same month in 2025, reaching a new historic high for the ninth month in a row. Prices in Beja rose 15.8 % annually, while other interior districts such as Viseu, Portalegre and Guarda also saw strong gains. Seven municipalities now have median sale prices of €750 000 or more, led by Cascais at €1.3 million.

The government’s state‑backed guarantee scheme for first‑time buyers aged 18‑35, which finances up to 100 % of a purchase up to €450 000, has been cited as a factor pushing prices higher. Patrícia Barão of APEMIP and construction‑company CEO Ricardo Vagarinho warned that the guarantee widens market imbalances. In June, the International Monetary Fund recommended suspending the public guarantee, arguing it exacerbates affordability problems.