Portugal’s property market is entering a new phase. After years of steady growth, 2024 marked its strongest year on record, with more than 156,000 transactions completed and a total market volume of €33.8 billion. Yet this success story carries a challenge for international buyers.

Prices are rising, particularly in Lisbon and the country’s coastal regions. Home costs rose by an average of 9.1% – a pace that outstripped much of Europe and placed Portugal firmly in the spotlight for both domestic and international buyers.

The capital remains Portugal’s powerhouse, drawing in younger local buyers supported by government incentives and foreign investors attracted to its cosmopolitan lifestyle. Coastal areas such as the Algarve and Cascais retain their long-standing appeal, offering beaches, international schools and rental potential.

But you can use this information to your advantage.

Prices jumped in Portugal in 2024, but that doesn’t mean you should avoid the country

Lisbon – a market of prestige

Lisbon remains the beating heart of Portugal’s property market, according to the latest European property survey by the ERA group. In 2024, the capital represented nearly a third of total market value, with average prices around €362,040. Beyond the numbers, Lisbon’s position as the country’s cultural, political and financial centre explains its enduring appeal.

From the historic Alfama district to the riverfront developments of Parque das Nações, the city offers a diversity of property styles that continues to draw both local and international buyers. Demand is particularly strong for centrally located apartments with character, but modern new-builds and luxury penthouses are equally in focus for investors seeking steady rental returns.

For international buyers, Lisbon is both a lifestyle and investment choice. It offers access to international schools, transport links, and a thriving digital economy that attracts a younger, mobile population.

But with prestige comes a premium. Buyers must account not only for purchase price but also transaction costs, property taxes, and ongoing maintenance.

If you’re preparing to buy property in Portugal, factor in the costs of buying property in Portugal and always commission a detailed property survey in Portugal. In a fast-moving market like Lisbon, decisive action matters – but informed decisions will protect both your lifestyle goals and your investment for years to come.

The coastal squeeze

Portugal’s coast has long captured the imagination of overseas buyers. The Algarve, Cascais and other shoreline destinations offer sunshine, leisure, and an international community that makes settling in straightforward.

These coastal areas remain magnets for retirees seeking a relaxed pace of life, second-home buyers wanting year-round appeal, and investors looking for high rental demand. Even after the end of the Golden Visa programme, demand has not slowed – Brazilian, European and Angolan buyers remain active, with many purchases supported by mortgages.

In these coastal hotspots, however, the balance between supply and demand is under increasing pressure. Sea-view villas and modern apartments command strong premiums, and competition can be intense.

To succeed in these markets, preparation is essential. Buyers should review the potential pitfalls of buying property in Portugal and take time to understand the full impact of Portuguese property taxes. Strategic negotiation is part of the process, and knowing when to move quickly is just as important as knowing when to walk away. Before making an offer on a property in Portugal, ensure your financing is secure and your expectations realistic.

For an overview of what’s available, there’s a quick comparison below:

Notes: Lisbon average price sourced from the ERA Europe Market Survey 2024/2025. Coastal town pricing varies by micro-location, property type and condition – review current comparables and total acquisition costs before committing.

Regions of opportunity

Head inland or north and the value proposition changes dramatically. While Lisbon and the coastal zones dominate headlines, the North of Portugal quietly recorded more than 46,000 transactions in 2024 – the highest of any region. Average prices there remain far more attainable, at €181,080, and the region also delivered the country’s largest number of new housing completions.

For buyers, that means a rare balance of affordability and choice, with modern, energy-efficient homes entering the market alongside character properties in historic towns.

Porto and its surrounding municipalities are central to this story. The city offers all the energy of a major urban hub – international schools, universities, and a growing digital economy – yet at a fraction of Lisbon’s price point.

Buyers considering buying property in Porto gain access to a cosmopolitan centre that remains well-connected to Europe through its international airport. For those seeking leisure and investment returns, the nearby Douro Valley combines vineyard landscapes with boutique tourism appeal.

Further south, the Setúbal Peninsula and central Portugal present strong alternatives, offering more space and lower costs while still being within reach of Lisbon.

If budget is your guiding factor, Portugal continues to offer options that suit different stages of the buying journey. Our overview of affordable property in Portugal highlights towns and regions where prices remain accessible, from up-and-coming interior cities to villages attracting younger families and digital nomads.

Once you have a sense of your priorities – lifestyle, rental potential, or long-term investment – you can refine your search by property type, from traditional stone houses to contemporary apartments in new developments. Take a look at houses for sale in Portugal to see what’s available.

Porto is just one of the many beautiful places in Portugal you could call home

Financing and process – move quickly, but with structure

With prices still rising – and existing homes outperforming new builds in 2024 – the best-prepared buyers are the ones who secure their property of choice.

Being finance-ready is no longer optional, it is essential. That means having conversations early with a mortgage broker in Portugal, understanding what it takes to get a mortgage in Portugal as an international buyer, and mapping out the step-by-step process of buying in Portugal. With a clear financial framework, you will be in a position to act decisively when the right property appears.

Equally important is maintaining a balance between ambition and caution. Negotiating in Portugal can be an art, and rushing in without clarity on fees, taxes, and legal obligations can cause costly delays.

Practical resources such as our money-saving tips, guidance on the legal requirements of buying property in Portugal, and advice on completing your property purchase will help you keep momentum without missing critical checks. The goal is not just to move quickly, but to move with structure – ensuring your purchase stands on firm financial and legal ground while still capturing the lifestyle that drew you to Portugal in the first place.

Outlook – value is shifting, opportunity remains

Market activity is expected to stay lively in 2025, with sustainability and energy efficiency increasingly shaping demand. Affordability in Lisbon and coastal areas will remain a challenge, while peripheral and regional markets are positioned for steady growth – an advantage for buyers who are flexible on location.

If your priority is lifestyle, see our broader guides to why buy a property in Portugal and how to find property in Portugal. If you are planning a relocation, you may also want to explore visas & residency options for non-residents in Portugal and our complete guide to living in Portugal.