Portugal Home Values Rise 5.7% Since January
- Infinite Solutions
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House sale prices in mainland Portugal registered a cumulative increase of 5.7% in May compared to the end of 2025, according to the Residential Price Index compiled by Confidencial Imobiliário.
Although the market continues to show significant growth, the rate of appreciation is more moderate than that observed in the same period of 2025, when the cumulative increase reached 8.4%.
However, this year's evolution follows a year of strong price expansion, which ended 2025 with a historic appreciation of 23.4%, reaching a record average price of €3,031/m² in the fourth quarter.
Throughout 2026, prices continued to rise, but at a slower pace than that recorded in the second half of 2025, a period in which the average monthly variation rate was around 2.0%.
In the first five months of this year, the average monthly appreciation was 1.1%, contributing to a gradual slowdown in the annual rate of change, which stood at 20.4% in May. In monthly terms, prices increased by 1.7% in May, reaching an average value of €3,123/m² in the three months between March and May.
“Despite the robust prices, the market shows signs of less dynamism in terms of transactional activity“
In the first quarter of 2026, there were approximately 37,800 transactions, 9.4% less than the quarterly average of approximately 41,000 sales recorded in 2025. The most recent data, referring to the period between March and May 2026, point to a stabilization of the market, with approximately 38,500 transactions completed, according to data from SIR – Residential Information System.
The gradual drop in the annual appreciation rate, from 23.4% to 20.4% in the first five months of the year, confirms a moderation in the market, but does not indicate any correction in prices.
There was even a slight drop of 0.7% in April, but it proved to be temporary, as demonstrated by the recovery observed in May, which registered a monthly increase of 1.7%
The maintenance of high levels of appreciation, even in a context of lower transactional activity and less favorable macroeconomic conditions, marked by the return of inflation and the persistence of higher interest rates, reflects the structural imbalance between supply and demand.
As long as the low inventory levels and the building of new housing remains insufficient to meet market demand, which are now even more pressured by demographic growth and migratory flows, especially in the main urban areas, it will be difficult to see a reversal of this trend.
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