Portugal’s property market continues to grow in terms of property valuation and buyer interest, partly due to the increasing interest in luxury and new-build property developments across the country among international investors.
Newly released data from the Property Market-Index has found that the median bank valuation for homes rose to €2,025 per square metre in October, representing a 17.9% increase compared to the same month last year.
The rise follows a similar jump in September, highlighting the continued resilience of the market at a time when many European countries are experiencing softer real estate conditions.
Growth remained geographically broad, with no region experiencing a monthly or annual decline in valuations. The Setúbal Peninsula led the country in annual performance, posting a 26.7% rise compared with October 2024.
Meanwhile, the North Region of Portugal recorded the strongest month-on-month growth, with a 2.5% increase from the previous month. Growth remained strong in the more well-known Algarve region, while buyer interest remains high in the two largest cities, Lisbon and Porto.
Commenting on the findings, Property Market-Index research representative Danielle Moxey noted that “these latest figures provide further confirmation of the steady momentum in Portugal’s residential market, particularly in the luxury and new-build segments. A 17.9% year-on-year increase in median bank valuations, with no regional declines, indicates continued confidence from both lenders and buyers.
“The strong performance in the Setúbal Peninsula, along with month-on-month growth in the North, indicates that demand is broadening across the country rather than concentrating in a single hotspot. However, we can still see significant buyer interest in regions such as Lisbon, the Algarve, Comporta, Alentejo, and elsewhere.
“For investors, this demonstrates why Portugal offers significant benefits for long-term property investment. The sustained international interest, a thriving luxury property market, controlled supply of high-quality new homes, and a stable economic outlook provide the potential for stable rental yields, robust demand, and long-term capital appreciation.”
This latest uplift aligns with a wider national trend throughout 2025. Portugal recorded the highest property price growth in the European Union during the first half of 2025, with a remarkable 16.3% year-on-year increase, significantly outpacing the EU average of 5.1%.
The country has experienced the highest price increases among the EU members, followed by Bulgaria (14.7%), Croatia (13.1%), Spain (12.3%), and Slovakia (12.2%).
Price appreciation has been particularly pronounced within the premium and new-build sectors, fuelled by strong international demand, lifestyle-driven relocations, and the limited availability. The recent acceleration across multiple regions suggests renewed confidence as the market enters the final quarter.
Portugal’s status as a premier European property market, driven by luxury and new-build investment appeal, ensures continued stability and valuation growth as the market transitions into 2026.