Portugal’s residential real estate market continued its strong upward trajectory in the third quarter of 2025.
That’s according to new figures from Statistics Portugal, highlighting robust price growth and sustained transaction values across the sector.
The latest House Price Index (HPI) data saw property prices rise by 17.7% year-on-year between July and September 2025, marking a further acceleration compared to the previous quarter.
This increase, which was 0.5 percentage points higher than in the second quarter, underlines the resilience and long-term appeal of Portuguese real estate despite a more measured pace of market activity.
Price growth was particularly pronounced in the existing housing segment, where values climbed by 19.1% year-on-year. New dwellings also recorded solid appreciation, with prices increasing by 14.1% over the same period.
This divergence reflects sustained demand for well-located, established properties, while continued gains in new builds point to confidence in the country’s residential development pipeline.
On a quarterly basis, the HPI rose by 4.1%, following a 4.7% increase in the previous quarter. Existing dwellings once again led the way, posting a 4.5% rise, while prices for new homes increased by 2.9%.
Paul Stannard, chairman and founder of Portugal Pathways and the Portugal Investment Owners Club, said: “These figures indicate steady momentum in values, reinforcing property’s role as a reliable store of value for homeowners and investors alike.
“We saw a significant uptick in demand for luxury real estate, especially new homes, in Portugal last year, and it already looks set to be another busy year in 2026.”
To find out more about buying luxury new homes in Portugal, contact Portugal Pathways today.
Market activity remained healthy in value terms. A total of 42,481 dwellings were sold during the quarter, representing a year-on-year increase of 3.8%. More notably, the total value of these transactions reached €10.5 billion, up 16% compared to the same period in 2024.
Domestic buyers continued to dominate the market. Households accounted for 88.3% of all transactions, purchasing 37,507 dwellings with a combined value of €9.2 billion.
Although purchases by buyers with a tax residence outside Portugal declined year-on-year, the overall picture remains one of a mature and increasingly value-driven market.
About Portugal Pathways
Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and provides expert guidance through its professional supply chain network on estate planning, wealth management, Golden Visa and tax optimisation, including post-NHR / IFICI tax regime planning, as well as private healthcare, money transfers and bespoke relocation and luxury real estate solutions to enhance life and investment in Portugal
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