Portugal’s property market has once again outpaced its European counterparts, with new data confirming that luxury and new-build demand continues to underpin exceptional national price growth.
The latest findings from Property Market-Index show that median bank valuations reached €2,025 per square metre in October, marking a 17.9% increase compared with the same month last year. This follows a strong showing in September and reinforces Portugal’s resilience at a time when many European markets are experiencing stagnation or decline.
Notably, no region in Portugal recorded a monthly or annual drop in valuations. The Setúbal Peninsula stood out with an annual rise of 26.7%—the strongest in the country—while the North Region posted the highest month-on-month increase at 2.5%. Lisbon, Porto and the Algarve also maintained significant momentum, supported by persistent demand from both domestic and international buyers.
Danielle Moxey, research representative at Property Market-Index, said the data confirms “the steady momentum in Portugal’s residential market, particularly in the luxury and new-build segments,” noting that the across-the-board growth demonstrates “continued confidence from both lenders and buyers”.
Moxey added that demand is now broadening beyond traditional hotspots: “The strong performance in the Setúbal Peninsula, along with month-on-month growth in the North, indicates that demand is broadening across the country rather than concentrating in a single location.”
The surge in valuations comes during a year in which Portugal has recorded the highest property price growth in the European Union. During the first half of 2025, prices increased by 16.3% year-on-year—more than triple the EU average of 5.1%. Portugal outperformed other fast-growing markets including Bulgaria, Croatia, Spain and Slovakia.
Paul Stannard, chairman and founder of Portugal Pathways, said: "This level of growth reflects the continued global shift towards high-quality, lifestyle-driven destinations — and Portugal sits firmly at the top of that list. International buyers aren’t just seeking property; they’re seeking stability, safety and long-term value, all of which Portugal continues to deliver.”
Industry experts attribute this sustained growth to several factors: strong international investor appetite, lifestyle-driven relocations, a thriving luxury housing segment and a constrained supply of high-quality new developments. Together, they continue to fuel price appreciation and support long-term rental yields and capital growth.
As the market moves into the final quarter of the year, the acceleration across multiple regions points to renewed confidence and sustained momentum heading into 2026. Portugal’s status as a premier destination for property investment—supported by its favourable climate, quality of life and robust new-build sector—shows no sign of weakening.
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