Portugal's average home price hits €261,000 as municipalities boost housing aid

The average value of a home in Portugal has risen to €261,000, driven by a 17.8% year‑on‑year increase in the price index for the first quarter of this year, while the number of property transactions fell.

Local authorities are urging the national government for urgent financing to complete delayed Recovery and Resilience Plan (PRR) projects, including schools, health centres, public housing and citizen‑service facilities. The Association of Portuguese Municipalities has asked for an alternative funding mechanism to avoid returning unspent PRR funds.

In Madeira, the city of Funchal raised the rent‑assistance ceiling to €1,100 and increased the PRESERVA programme grant for renovation works from €7,000 to €8,000. In São Vicente, a €1 million investment is converting an abandoned school into four affordable homes for local families, up from an initially planned €700 k budget.