Housing Market in Portugal Sees Slow Price Increase

Despite cooling demand and high-interest rates, house prices in Portugal rose by just 0.6% in February, with the median cost stable at 2,596 euros per square meter.

The cost of buying a house in Portugal continues to rise, albeit at a slower pace, due to factors such as decreased purchasing power and high-interest rates on housing loans. This trend, which was first observed in mid-2023, has persisted into the beginning of this year. In February, house prices for sale increased by just 0.6% compared to the previous month, with the median cost of housing remaining stable at 2,596 euros per square meter.

According to the idealista price index, there was an increase in house prices in 7 district capitals between January and February, with Évora leading the way with a 2.3% rise. Overall, house prices in Portugal rose by 6.2% annually. In February, the prices of houses for sale increased in several district capitals, with Évora, Guarda, and Coimbra seeing the highest increases.

Lisbon remains the most expensive city to buy a house, with prices reaching 5,538 euros per square meter. Porto and Funchal follow closely behind, with prices of 3,517 euros/m2 and 3,214 euros/m2, respectively. On the other hand, Guarda, Castelo Branco, Beja, Bragança, and Santarém are the most affordable cities to purchase a home, with prices ranging from 795 euros/m2 to 1,213 euros/m2.

The housing market in Portugal continues to experience price increases, albeit at a slower pace. The disparity in house prices across different cities highlights the challenges faced by potential homebuyers in the country.