Houses continue to appreciate in value
The median price of housing was €2,076 per square meter, 16.8% higher than in 2024.

Greater Lisbon once again led as the most expensive sub-region in the country, with a median price of €3,439 per square meter, followed by the Algarve (€3,139/m²), the Setúbal Peninsula (€2,596/m²), Madeira (€2,500/m²) and the Porto Metropolitan Area (€2,305/m²).

Among the municipalities, Lisbon maintained the highest price in the country (€4,875/m²), followed by Cascais (€4,550/m²), Oeiras (€4,187/m²), Loulé (€3,993/m²) and Lagos (€3,801/m²).

In total, 56 of the 308 Portuguese municipalities registered prices above the national median, located mainly in the sub-regions Greater Lisbon (all nine municipalities), Setúbal Peninsula (all nine municipalities), Algarve (14 of the 16 municipalities) and Porto Metropolitan Area (nine of the 17 municipalities).

Rentals also became more expensive
The rental market also continued to put pressure on family budgets.

The median rent of the 149,628 new contracts signed in 2025 increased by 9.7%, to €9.29 per square meter, while the number of new contracts grew by 5.4% compared to the previous year.

Once again, Greater Lisbon presented the highest values ​​(€14.19/m²), followed by Madeira (€11.33/m²), Setúbal Peninsula (€11.05/m²), Algarve (€10.53/m²) and Porto Metropolitan Area (€10.17/m²).

In the municipalities, Lisbon (€16.88/m²), Cascais (€16.20/m²) and Oeiras (€15.03/m²) once again led the ranking of rents.

More construction, but still insufficient
The data also shows a recovery in construction activity.

In 2025, 26,227 buildings were licensed, 1.4% more than the previous year, and 48,844 dwellings, an increase of 14.6%, the highest value since 2011.

Despite this, the number of completed buildings decreased by 3%, to 16,964, although the number of completed apartments increased by 8.7%, totaling 30,425. In new constructions intended for family housing, completed apartments grew by 10.7%, to 27,301 units.

Credit follows market dynamism
The increase in activity was also reflected in mortgage lending.

Throughout 2025, approximately 146,000 bank valuations were carried out, 4.3% more than the previous year and the highest value since 2009.

Even so, IBGE points out that the growth in valuations was below the evolution of the number of transactions (4.3% versus 8.6%), indicating that the sales dynamic was even more intense than the credit dynamic.

A market that remains under pressure
The data released by INE confirms that 2025 was another year of strong dynamism in the Portuguese residential market. Sales increased, prices continued to grow well above inflation, rents maintained an upward trajectory, and construction showed signs of recovery.

Despite increased supply, with more licenses and more completed fires, the numbers suggest that the response remains insufficient to meet demand, especially in metropolitan areas and major tourist markets, where prices remain well above the national average.

Source: IBGE | CasaYes
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