Portugal Real Estate Remains a Strategic Choice in 2026

International investors continue to prioritise Portugal — not only for its climate and lifestyle, but for its consistent market fundamentals.

In a global context marked by uncertainty and price volatility, Portugal distinguishes itself through competitive entry values, steady long-term growth, appealing rental returns, tax efficiency and a transparent legal system welcoming overseas buyers.

From prime urban regeneration projects in Lisbon to tourism-driven assets in the Algarve, the country presents diversified opportunities across residential, commercial and hospitality segments.

The most recent indicators for 2026 confirm that Portugal’s real estate market remains one of the most attractive in Europe for foreign investors, reflecting the positive impact of the policies introduced and enacted throughout recent years.

According to the latest official data from INE (Statistics Portugal), the national median house price reached €2,111 per square metre in Q3 2025, representing a 16.1% increase year-on-year compared to Q3 2024.

Total housing transactions in Q3 2025 amounted to 41,117, showing modest growth of 4.0% year-on-year.

The real estate market in Portugal is experiencing a continuous boom, with prices increasing by more than 15% annually, exceeding the EU average and projected to continue growing until 2027. Driven by high international demand and limited supply, the Algarve and Lisbon lead in prices, attracting investors and expatriates, despite adjustments to Golden Visas. 

Key Points of the Real Estate Boom (2025-2026):

Record Appreciation: In 2025, house prices in Portugal registered one of the highest increases in Europe, reaching increases of over 17% year-on-year, with the price per square meter rising significantly.

International Demand: The country continues to be a top destination for investors and foreigners (Americans and Europeans), with demand exceeding supply.

Featured Regions: The Algarve and Lisbon register the highest prices, with areas such as Comporta and Melides reaching high values, while the Lower Alentejo stands out as a growing market.

Driving Factors: High demand, a focus on rehabilitation, increased construction costs (approx. 30% in the last 4 years), and robust tourism are driving the market.

2026 Trend: Real estate investment is expected to continue growing by around 8%, with an increase in transactions of more than 10%, supported by a safe environment and high quality of life.

Despite the risks, the market shows resilience, with prices more than doubling in the last decade.

All these initiatives prove that purchasing real estate in Portugal continues to be a decisive choice, whether to settle down in one of the best EU countries or to obtain a solid return on your investment in 2026.

Disclaimer: The above information is for general informational purposes only and should not be construed as legal, tax, or financial advice.