Portugal faces rising housing prices and increased mortgage costs

Portugal is experiencing significant economic shifts regarding housing and energy costs. According to Eurostat, Portugal recorded the highest increase in house prices in the EU during the second quarter of 2026, with a year-on-year rise of 16.5%. Local data from Idealista indicates that house prices rose 7.9% in September compared to the previous year, reaching a median cost of 3,228 euros per square meter. Lisbon remains the most expensive city for property acquisition.

Simultaneously, Portuguese households face rising mortgage costs due to Euribor fluctuations. Simulations by Deco Proteste suggest that monthly payments for a 150,000 euro loan could increase by up to 91.24 euros for those on 12-month Euribor contracts. This represents one of the largest increases in three years, affecting nearly one million families with variable-rate mortgages.

Energy costs are also rising. In the regulated market, electricity prices have increased by 2.7%, affecting approximately 779,000 customers, while natural gas prices rose by 6.4%, impacting around 431,000 people. Additionally, REN reported that electricity consumption in Portugal reached a historic high during the first nine months of 2026, increasing by 3.4% compared to the previous year.