Portugal's Housing Market Outperforms EU Average
Portugal registered the most significant increase in house prices across the European Union during the second quarter of 2025, with a substantial rise of 17.2% compared to the same period in the previous year. This data, released by Eurostat, highlights Portugal's leading position in the European housing market.
Unprecedented Growth Across the Union
The 17.2% year-on-year increase in Portugal's house prices far exceeded the average growth observed across the EU, which stood at 5.4%, and the Euro area average of 5.1% for the second quarter of 2025. Among the Member States for which data was available, Portugal's growth was the highest, followed by Bulgaria with a 15.5% increase and Hungary with 15.1%. On a quarterly basis, comparing Q2 2025 to Q1 2025, Portugal also recorded the highest increase in the EU, with prices rising by 4.7%.
Key Drivers of the Surge
Several factors have contributed to Portugal's robust house price appreciation. A significant driver is the strong demand from foreign investors and digital nomads, who are attracted by the country's lifestyle, tax incentives, and relatively accessible residency programs, such as the Golden Visa and D7 Visa. The market is also characterized by a limited housing supply, particularly in prime urban and coastal areas, which struggles to keep pace with the escalating demand. Furthermore, stable economic conditions and a thriving tourism sector have bolstered confidence and investment in the real estate market.
Regional Impact and Long-Term Trends
The strong price appreciation has been particularly notable in key regions including Lisbon, Porto, the Algarve, and Madeira. Lisbon, the capital, continues to report some of the highest average prices per square meter. Historically, Portugal's housing market has shown remarkable resilience and growth. Between 2010 and the second quarter of 2025, house prices in Portugal have increased by 141%, significantly outperforming the EU average over the same period. This sustained growth underscores Portugal's enduring appeal as a destination for real estate investment and residency.
5 Comments
Noir Black
Fantastic economic indicator! Shows strong confidence.
BuggaBoom
The influx of foreign capital and digital nomads is undoubtedly boosting the housing market. However, without corresponding increases in local wages or supply, it exacerbates the housing crisis for those already living there.
Loubianka
Tax incentives only benefit the wealthy. Wrong priorities.
Donatello
While the 141% growth since 2010 is a testament to Portugal's enduring appeal, such rapid quarterly increases are alarming. It's great for investors, but the social cost for locals is becoming increasingly evident.
Leonardo
Finally, a return on real estate! Well-deserved growth.