Portugal leads EU in house price growth amid rental market shifts

Portugal recorded the highest increase in house prices within the European Union, with a 16.5% rise in the second quarter of 2026 compared to the same period in 2025, according to Eurostat data. This follows a quarterly increase of 3.6%.

Regarding the rental market, an analysis by Imovvirtual shows that approximately 88% of rental listings in Portugal are priced at or below 2,300 euros. This threshold is linked to a government fiscal package designed to encourage moderate rents by reducing IRS tax rates on rental income from 25% to 10% and lowering VAT on construction to 6% for qualifying properties.

Market trends indicate that properties listed under the 2,300 euro limit are, on average, 12% smaller than previous listings, with a higher concentration of one-bedroom (T1) apartments. In the 2,000 to 2,300 euro range, listings have grown by approximately 34%, with Lisbon accounting for 76% of these advertisements.