Portugal remains one of the most attractive real estate markets in Europe thanks to stable demand, rising prices and high activity from foreign investors. Find out how much property in Portugal costs in 2026, which regions are the most expensive and the most affordable, how rental prices are changing, where foreigners are investing and how the home buying process works

Portugal has been among the most attractive countries in Europe for living and investing in real estate for several years in a row. A favorable climate, a relatively safe environment and high demand from foreigners form a stable interest in the housing market.

Despite the abolition of the “golden visa” program for buying real estate, the market has not lost its dynamics. On the contrary, prices continue to grow, and the number of investments remains high. Interest in the Portuguese market continues to grow, and foreign investors are actively considering the country as one of the key points for investing in European real estate. We have collected everything you need to know about the Portuguese housing market in this article.

If you are planning to buy real estate in Portugal, it is important to check all the legal nuances of the transaction in advance. A real estate lawyer will help you avoid risks, check the documents and accompany the process of buying or selling housing.

Contact a specialist to protect yourself at every stage of the transaction and make an informed decision without legal errors!

Main areas of investment in real estate in Portugal and the volume of investments by foreigners

In 2025, foreign investors invested about 3.9 billion euros in real estate in Portugal, which is about 10% more than a year earlier. In general, real estate accounts for almost half of all foreign direct investment in the country - about 45.9%, which indicates that housing in Portugal is considered not only as a place to live, but also as an investment asset with growth potential.

The main part of investments is concentrated in several key regions:

- Lisbon - the largest center of economic and business activity - 113.2 billion euros;

- Northern Portugal - a region with developed infrastructure - 37.2 billion euros;

- Algarve - a popular tourist destination - 21.7 billion euros.

Among the most active investors are citizens of Luxembourg with 1.1 billion euros, the United Kingdom with 900 million euros and Germany with 800 million euros. Representatives of Morocco, Brazil and Norway are also considering buying a home in the country.

Read the link about the current conditions of the Portuguese golden visa in 2026 and its strategic advantages.

Average cost of buying a property in Portugal 2026

According to official statistics, the average cost of buying a home in Portugal is around 1,478 euros per square meter. At the same time, real market prices are usually higher - and the difference between statistics and actual offers can be significant.

This is due to the fact that official data takes into account completed transactions, while market platforms reflect current offers and a different approach to calculating the average value. As a result, prices in practice can vary from approximately 2,400 to 3,800 euros per square meter, depending on the source, region and type of property.

Lisbon and Porto are the two cities most often chosen for a first trip to Portugal. Read here about the key differences between the capital and the country's second city to plan your perfect trip.

How does the cost of real estate in Portugal vary depending on the region?

The cost of housing in Portugal varies significantly depending on the city and even the specific area. In large cities, prices are influenced by demand, infrastructure and tourist attractions.

On average, in cities, a square meter in the center costs around 3,400–3,500 euros, while outside the central areas the price drops to around 2,400–2,500 euros. This difference is explained both by location and access to transport, services and business activity.

Where is the most expensive real estate in Portugal?

Lisbon, Algarve and Madeira are traditionally among the regions with the highest prices.

- Lisbon – housing prices in popular areas exceed €5,000 per square meter, making the capital the most expensive city in the country, where demand consistently exceeds supply.

- Algarve attracts with its climate and tourist flow. The average price of an apartment or house here is €2,000 per square meter.

- Madeira is known for its limited supply and stable interest from foreigners. Be prepared to pay €1,558 per square meter here.

At the same time, suburbs such as Cascais also fall into the expensive segment due to their proximity to the capital and high standard of living.

Which regions of Portugal have the lowest housing prices?

At the same time, there are many more affordable regions in the country. In central Portugal, in the north and in Alentejo, prices are much lower – around €1,000 to €1,400 per square meter. These are the regions that are often considered as an option for budget living or investment with the potential for value growth.

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Costs of maintaining a property in Portugal

In addition to the purchase price of a home, owners in Portugal pay annual taxes and utility costs, which depend on the region and the characteristics of the property.

Taxes

The main tax is the municipal IMI, which is approximately 0.3-0.8% of the cadastral value. If the property costs more than €600,000, an additional AIMI tax of 0.7-1% may apply.

Electricity

On average, the price is around €0.15-0.18/kWh, with higher prices during peak hours. In winter, costs usually increase due to the lack of central heating.

Water

Tariffs vary depending on the region. For example, for 120 m³ of water, the amount can range from around €88 to €250, depending on the city.

Gas

Some homes are connected to the mains, but gas cylinders are often used. The cost depends on the supplier and the region. The price per liter ranges from 3 to 14 cents.

As a result, the total cost of maintaining a property is formed by taxes and utility bills and can vary significantly depending on the location and level of consumption.

Is it expensive to rent a home in Portugal?

The rental market in Portugal generally remains expensive, especially in large cities, where demand consistently exceeds supply. The cost of renting depends significantly on the location, size of the home and proximity to the center.

On average, a one-bedroom apartment in the center costs about 900 euros per month, while outside the central areas it costs about 700 euros. This difference is primarily explained by access to infrastructure, transport and business areas.

Prices in the capital are much higher. In Lisbon, renting a one-bedroom apartment in the center can cost around 1,300–1,350 euros per month, while a three-bedroom apartment can cost over 2,500 euros. This makes Lisbon one of the most expensive cities in Europe in terms of rental costs.

At the same time, in smaller cities and regions outside the tourist centers, rent remains more affordable, which allows you to find housing at much lower prices.

Find out how to rent property in Portugal as a foreigner in our guide.

How to buy an apartment or house in Portugal?

Buying property in Portugal involves several mandatory steps:

1. Obtain a tax number (NIF)

Citizens of non-EU countries can apply for it through a lawyer or tax representative.

2. Open a bank account in Portugal

This is necessary to make payments when buying property.

3. Sign a preliminary purchase and sale agreement

The document records the main terms of the agreement: description of the property, price, payment procedure and obligations of the parties.

4. Make a deposit

Usually it is 10–30% of the cost of housing. In the event of the buyer's refusal to accept the agreement, this amount is usually not refundable.

5. Check the documents for the property

In particular, the cadastral data (Caderneta Predial Urbana) and the registration certificate (Certidão de Teor), which confirm the characteristics of the property and ownership.

6. Pay the property tax (IMT)

Its amount depends on the value of the property and can be approximately 0.3–0.8% of the cadastral assessment.

7. Choose a notary

He checks the documents and accompanies the final execution of the agreement.

8. Pay the final amount for the property

Taking into account the deposit already paid.

9. Sign the purchase and sale agreement

The notary will sign the agreement.

10. Register the ownership

The notary will submit the documents to the tax authorities and the land registry for the official registration of the new owner.

Buying real estate in another country is always associated with legal nuances that can be complicated without professional support. A real estate lawyer will help you accompany the transaction at all stages - from checking the documents to signing the final contract. He will analyze the ownership, check the terms of the contracts and help you avoid hidden risks.

Such a specialist is especially useful for foreign buyers who are not familiar with local legislation and the procedure for signing transactions in Portugal. A real estate lawyer can also represent the client's interests, inspect the property before purchase and advise on taxes and additional costs.

If you are planning to buy a home in Portugal, contacting a lawyer will help you go through the process safely, quickly and without legal errors. Get professional support and confidence in every stage of the transaction today.

Let us remind you! Real estate prices in European capitals vary significantly: in some cities, buying a home has long been a privilege of very wealthy buyers, while in others the market remains relatively affordable. A new study has shown where in Europe it is most expensive to buy an apartment or a house today. We have already talked about the most expensive capitals in Europe for buying a home.

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