Portugal’s housing market notched its eighth consecutive monthly record in June, with the median asking price reaching €3,156 per square metre nationally — another all-time high on top of an already stretched market. For foreigners weighing a move, a purchase, or simply renewing a rental contract, the number confirms what most already suspected: the cost of a roof over your head here keeps climbing, even where the pace of increase is finally easing.
What the data shows
According to the latest data from the idealista price index, this new record marks the eighth consecutive monthly high, even though the year-on-year growth rate has slowed to 8.9%, down from 10.2% in May. A spokesperson for the platform, Ruben Marques, notes that this slowdown signals some moderation; however, the chronic shortage of housing supply relative to high demand continues to prevent a more significant price correction.
The rise wasn’t confined to the usual hotspots. The trend of rising prices extended to all district capitals and autonomous regions across the country, with the sharpest annual increases concentrated in the interior and lower-density areas. Portalegre led the rise with a 25.8% surge, closely followed by Castelo Branco and Santarém, both recording increases exceeding 24%, while major urban centres saw more modest gains, with a 6.9% rise in Porto and 5.8% in Lisbon.
Regionally, the Alentejo region stood out with the highest annual appreciation, growing by 18.7%, in contrast to the North, which recorded the country’s most moderate increase at 5.5%. Islands told an even more extreme story: the largest year-on-year increase was recorded on the island of Santa Maria in the Azores, with a 37.4% rise in value, while the neighbouring island of Faial stood out as the country’s sole territorial exception, registering an 11.9% drop in prices.
In absolute terms, the gap between regions remains stark. The Lisbon Metropolitan Area cemented its status as the country’s most expensive region, with the median price per square metre reaching €4,403, while the Central region emerged as the most affordable area for purchasing a home, at an average of €1,786 per square metre. Among cities, Lisbon remains the most expensive city in which to purchase a home, with prices at €6,107 per square metre, followed by Porto at €4,053 and Funchal at €3,921, while Guarda remains the most affordable district capital, recording a median price of €1,019 per square metre.
Why foreign buyers feel it more
Idealista’s index tracks asking prices, but Portugal’s official statistics agency, INE, publishes transaction data that reveals a separate pattern affecting non-residents specifically. Its most recent local-level figures showed a persistent premium: the report highlights a marked disparity between prices paid by purchasers with tax residence abroad and those domiciled in Portugal — foreign buyers paid a median price of €2,934/m² in Q4 2025, a premium of roughly 35% more than the national-buyer median. In the capital’s own metro area, that gap widened further, with foreign-buyer prices exceeding national-buyer prices by 49% in Greater Lisbon.
The structural cause behind all of this is well documented and hasn’t changed: chronic undersupply against strong demand. Analysts and the Bank of Portugal alike point to the same bottleneck — limited new construction, a large stock of vacant properties that’s hard to bring back into circulation, and persistent buyer interest from abroad keeping upward pressure on prices even as transaction volumes soften.
What it means in practice
For anyone budgeting a purchase, the fact sheet basics still apply and now matter more than ever given these price levels. Non-resident buyers face a flat 7.5% IMT (property transfer tax) on most residential purchases, plus 0.8% stamp duty, on top of notary and legal fees — worth planning for at 8–9% of the purchase price in total costs. Check current IMT rates and thresholds directly with the Portal das Finanças before making an offer, since bands and exemptions can shift. A NIF and Portuguese bank account remain prerequisites before any deed can be signed.
Renters aren’t spared either. Even where sale-price growth is decelerating, rental supply in the same tight urban markets keeps pushing monthly costs upward for newcomers on digital nomad or D7 visas, many of whom already need to prove savings and income thresholds that were calculated before this year’s price runs. Anyone budgeting a relocation should treat current listing prices as a floor, not a ceiling, and build in a margin — our /relocation/ guide walks through realistic monthly cost planning for exactly this reason.
What to watch next
Two things will decide whether this record run has legs into the autumn: whether the deceleration in year-on-year growth (8.9% and falling) continues, and whether new housing supply — long promised, rarely delivered at scale — starts showing up in transaction data. Neither is guaranteed. For now, the safest assumption for anyone planning a purchase or a lease is that Portugal’s housing costs, wherever you land, will likely be higher again next month than they are today.
If you’re weighing a property purchase or rental move as a foreign resident, our team can help you plan the tax and paperwork side properly — get in touch through /services/.
This article was produced with AI assistance and editorial oversight in line with our editorial policy. It is general information, not legal or tax advice.