Portugal has recorded the largest increase in real estate prices across the European Union (EU) in the second quarter of 2025 – and there’s no sign of it slowing.
Portugal’s property market has long boasted rapid price growth and attractive returns for high-net-worth individuals (HNWIs) and savvy investors.
According to Eurostat, the statistics office of the EU, year-on-year, property values surged by 17.2%, outpacing other high-growth markets such as Bulgaria (+15.5%) and Hungary (+15.1%).
On a quarterly basis, Portugal led the EU with a 4.7% rise in house prices, signalling strong and sustained momentum in the market.
Over the past decade, Portugal’s real estate sector has delivered extraordinary returns.
Analysis from The Forex Complex revealed property prices in Portugal have risen by a remarkable 138% in the last 10 years.
For investors, this represents not only capital appreciation but also an exceptional opportunity to secure long-term gains in a stable and growing market.
Currently, properties can be purchased at around €5,700 per square metre, with projections indicating that values could reach €13,620 per square metre within the next 10 years.
Eurostat’s data, combined with long-term growth projections, underscores Portugal as the top country in Europe for property investment returns, offering potential profits of up to €370,000 per average dwelling.
Paul Stannard, chairman and founder of Portugal Pathways and the Portugal Investment Owners Club, said: “These figures underline Portugal’s global appeal to high-net-worth individuals seeking both an investment opportunity and an exceptional place to live.
“Portugal’s luxury property market continues to benefit from long-term stability, a favourable climate, strong infrastructure, and a high quality of life.
"Portugal’s reputation for safety, combined with a competitive tax environment for certain residency categories, further strengthens its appeal as both a lifestyle choice and a strategic investment.”
Investor confidence in Portugal is also at an all-time high, with an Ernst & Young (EY) report finding 84% of entrepreneurs surveyed plan to expand or establish operations in Portugal. Additionally, S&P have recently upgraded Portugal’s economic rating from ‘A’ to ‘A+’.
American investors allocated over $58 billion (€49.5 billion) to European real estate last year, with many seeking high-growth markets like Portugal over domestic alternatives.
With record-breaking price growth and exceptional long-term returns forecasts, the country offers a compelling proposition for those looking to grow their wealth through real estate.
Find out more about how Portugal Pathways can help you navigate Portugal's luxury real estate 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 luxury property, wealth management, and tax optimisation, including post-NHR tax regime planning, as well as private healthcare, IFICI tax incentive applications, money transfers and bespoke relocation solutions to enhance life and investments in Portugal.
About Portugal Investment Owners Club
The Portugal Investment Owners Club, or P Club for short, is a unique investor membership community designed for discerning individuals, families, and organisations committed to exploring and capitalising on life in Portugal and enjoying money-can't-buy experiences and exclusive events.
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. Golden Visa investments need to be held for 6 to 7 years to allow for permanent citizenship/passport in the EU.
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