Portugal recorded the sharpest rise in housing prices since records began in 2025, according to official figures.
It underscores continued strength in the country’s property market despite shifting buyer dynamics and regional variations.
According to Portugal’s National Statistics Institute (INE), the house price index surged by 17.6% over the year, representing an increase of 8.5 percentage points compared to 2024.
This marks the highest annual growth in the available data series.
The rise was driven largely by the resale market, with prices for existing homes climbing by 18.9%, notably outpacing the 14.2% increase seen in new-build properties.
Property transactions also reached a new peak. A total of 169,812 homes were sold in 2025, reflecting an 8.6% increase on the previous year and the highest figure recorded.
The bulk of activity remained concentrated in the existing housing segment, which accounted for 136,245 transactions, an increase of 9.5% and representing over 80% of total sales.
New home sales rose more modestly by 5.3% to 33,567 units.
In monetary terms, the housing market expanded significantly.
The total value of transactions reached €41.2 billion, up 21.7% year-on-year. Of this, €30.5 billion came from existing home sales, which saw a strong 25% increase, while new homes contributed €10.7 billion, up 13%.
Demand from domestic buyers played a central role in this growth.
Purchases by households rose by 10.5% to 148,632 homes, accounting for 87.5% of all transactions, the highest proportion since 2019.
The value of these purchases climbed even more sharply, increasing by 24.4% to €35.7 billion, equivalent to 86.8% of the total market.
Buyers with tax residence in Portugal further strengthened their dominance.
Transactions involving domestic taxpayers rose by 10.1% to 161,341 units, representing 95% of all sales.
Regionally, the picture was mixed. The central, western and Tagus Valley regions together accounted for over a quarter of all transactions and recorded the most notable gains in market share.
Conversely, Greater Lisbon and Madeira experienced the most significant declines in relative weight, although Lisbon remained the most valuable market, generating €12.4 billion - around 30% of total transaction value.
The north followed with €10.5 billion, representing 25.6% of the market and showing a modest increase in share.
The final quarter of 2025 provided further insight into evolving trends. House prices rose by 18.9% year-on-year during this period, with existing homes again leading the growth.
However, transaction volumes dipped slightly, with 43,084 homes sold, a 4.7% decline compared to the same period in 2024. This marked the first annual drop in quarterly sales since early 2024.
Despite the slowdown in transactions, the value of sales in the final quarter still rose by 5.9% to €10.8 billion, reflecting sustained price pressures.
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