Portugal's Real Estate Market Continues to Surge in 2025 as Luxury and Regional Hotspots Attract Investment

Portugal's real estate market is brimming with opportunity, from Lisbon's luxury appeal to the rising potential of regional locations, making it the perfect time for investors to explore new possibilities.

Property Market-Index, a research organisation that tracks international luxury real estate market performance and trends, has found that house prices across the country rose by 4.2% in January 2025 compared to the same period in 2024.

This is in addition to the median cost of buying a house in Portugal, which reached €2,675 per square meter at the start of the year. In January, property prices also increased in 18 out of the 20 district capitals examined across property.

Experiencing the most property price growth were regions Évora (17.2%), Beja (16%) and Vila Real (15.4%), while housing has also become more expensive in the last year in Santarém (15.3%), Setúbal (14.4%), Leiria (12.2%), Ponta Delgada (10.5%), Bragança (10.1%), Ferragudo/Carvoiero (9.6%), Viseu (9.4%), Funchal (8.7%), Coimbra (7.9%), Guarda (7.5%), Braga (7.1%), Faro (4.6%), Porto (3.1 %), Castelo Branco (3%), Portalegre (2.9%) and Viana do Castelo (1.4%).

International property market researcher and Property Market-Index spokesperson Amanda Collison can see why investor interest is increasing across Portugal:

"Portugal's property market continues to demonstrate remarkable resilience and growth, with both prime urban locations and regional hotspots attracting increasing investor interest."

"The latest data underscores the strong demand across the country, particularly in cities like Évora, Beja, and Vila Real, where price surges reflect the evolving appeal of regional investment opportunities."

Aveiro was the only district in Portugal where property prices remained predictably stable. The only location where property prices fell was the capital city, Lisbon (-1%).

However, the capital remains the most expensive location in Portugal to buy a property. It is also the only European city referenced in the latest Trend Report 2025 as one of the most attractive destinations for luxury real estate investment.

This was alongside international metropolises such as Dubai, Singapore, Barcelona and Melbourne.

"Despite a slight price dip, Lisbon remains Portugal's premier real estate hotspot, attracting high-net-worth investors and international buyers looking for prime luxury properties," said Amanda Collison, spokesperson for Property Market-Index.

"Its increasing global recognition further cements its status as a top-tier investment destination, on par with cities like Melbourne and Dubai. With strong long-term fundamentals, Lisbon offers exceptional opportunities for those seeking a luxury lifestyle and financial returns."

"Portugal’s real estate market continues to prove its strength, not only in Lisbon but across emerging regional hubs that are attracting increasing investor attention," said Paul Stannard, Chairman and Founder of Portugal Pathways and Portugal Investment Owners Club.

"With growing interest from international buyers and a dynamic investment landscape, Portugal remains a key destination for those looking to secure long-term value in both luxury and alternative property markets. Now is an opportune time to explore the diverse opportunities this market has to offer."

‍

Disclaimer: The information on the Portugal Pathways and Portugal Investment Owners Club (P Club for short) websites and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice.

‍