How much is a house in Portugal? Prices, costs, and key insights

Portugal has become one of Europe’s most attractive property markets, drawing in retirees, families, and digital nomads alike. The combination of Mediterranean weather, a slower pace of life, and strong connections to the rest of Europe makes Portugal an appealing place to settle. 

For many international buyers, the affordability of Portuguese real estate compared to other Western European countries adds to its charm.

So, how much is a house in Portugal?  In the first quarter of 2025, the average price was €1,951 per m², meaning a typical 100 m² home costs around €195,100. Prices vary widely by region — Lisbon averages about €4,492 per m² (€449,200 for 100 m²), Porto comes in at €3,066 per m² (€306,600), while more affordable areas like Braga average €1,792 per m² (€179,200).

This article will walk you through the average home prices, rental yields, and the key factors that shape the cost of houses in Portugal.

Portugal housing market overview

The housing market in Portugal has been moving quickly, with prices continuing to rise through late 2024 and into 2025. At the end of 2024, the national house price index stood at 235.68 points, climbing to 247.05 in the first quarter of 2025, the highest level recorded so far. This index tracks changes in property values over time, so the jump reflects a significant nationwide increase in actual house prices. This steady increase reflects strong demand from both local and international buyers.

In the first quarter of 2025, the average home price in Portugal of the more than 40,000 homes sold was €1,951 per m², almost 19% higher than the same period in 2024. Sales also grew by nearly 25% year-on-year, showing just how active the market has become. 

All 26 regions across the country saw prices rise, with Alto Alentejo standing out after a remarkable 51% increase in only one year.

Housing prices in Portugal by region and major areas

Housing prices in Portugal vary significantly depending on location, with Lisbon and Porto leading as the most expensive markets, while regions like Braga or parts of the Algarve offer more balance between affordability and lifestyle. 

Here’s a quick look at the housing prices in some of the best places in Portugal in the first quarter of 2025:

Lisbon

Source: Embrace Someplace

Lisbon has the most expensive and active housing market, with strong demand from both locals and international buyers. In early 2025, the average home price in Lisbon, Portugal was around €4,492 per m², while central areas typically ranged between €5,560 and €6,934 per m². 

Some of the city’s most desirable districts are even higher, including Parque das Nações (~€8,517/m²), Avenidas Novas (~€8,377/m²), Estrela (~€7,694/m²), Campo de Ourique (~€6,974/m²), and Belém (~€6,757/m²).

For those looking to live in Lisbon, neighbourhood choice often balances lifestyle and budget. Avenidas Novas and Campo de Ourique offer central locations with modern amenities, while Alvalade is known for its larger apartments, leafy streets, and schools. 

Lumiar provides newer developments at better price and investment value per square metre. Investors are attracted by rental yields of around 5–6.8% across the metro, while long-term buyers value the city’s culture, international schools, and easy access to the airport.

Porto

Source: MSN

Portugal’s second city combines tourism, universities, and a growing tech sector. The average home price in Porto, Portugal is around €3,066 per m², though city-center homes are higher at €4,296–€4,883/m². 

Surrounding areas offer good alternatives: Matosinhos (~€3,884/m²) has beaches and new builds, Vila Nova de Gaia (~€3,759/m²) provides river views and a lively dining scene, and Vila do Conde (~€2,832/m²) delivers coastal value.

Rental yields average 5–7%, supported by short-term lets and student demand. Buyers seeking character often choose Cedofeita or Foz, while families look to newer developments in Matosinhos Sul.

Algarve

Source: Mariott

The Algarve is Portugal’s best-known coastal region and a magnet for second-home buyers and retirees. The average sits at about €2,247 per m², though prices range from €3,334 to €4,385/m² depending on location. 

Popular towns sit higher: Lagos (~€5,066/m²), Albufeira (~€4,176/m²), Faro (~€3,701/m²), and Tavira (~€3,660/m²). Ultra-prime addresses in the Golden Triangle (Vale do Lobo, Quinta do Lago, Almancil) reach €9,850–€12,300/m². 

Holiday-let investors often target Lagos Marina or Vilamoura, while retirees prefer Tavira for its historic charm and affordable pricing. Rental yields average around 5.6% across the region.

Braga

Source: European Best Destinations

Braga is one of Portugal’s fastest-growing northern cities, blending a strong university base with a rising tech sector. The regional average is about €1,792 per m², making it far cheaper than Lisbon or Porto. 

Stronger neighbourhoods run €2,300–€2,800/m², while the wider region offers entry points from €1,448/m². First-time buyers and families value the larger homes and affordability, while investors look at the historic center and areas near the universities for steady student demand. 

Buyers seeking a balance between affordability and connectivity often focus on properties along the train corridor linking Braga to Porto.

Cascais

Source: Trot Op

Cascais is a premium seaside municipality within the Lisbon metropolitan area, combining beaches, marinas, and international schools. The average sits at about €4,477 per m², though micro-markets vary widely. 

Entry-level options include São Domingos de Rana (~€3,841/m²), while Alcabideche (~€5,487/m²) sits higher. Beachfront areas are among the most expensive: Carcavelos & Parede (~€7,365/m²) and Cascais/Estoril (~€8,389/m²). 

Families are often drawn to Estoril and Quinta da Marinha for villas and schools, while investors focus on executive rentals around Carcavelos Nova SBE and areas along the Lisbon train line.

Factors influencing housing prices in Portugal

The cost of buying a home in Portugal is shaped by more than just supply and demand. 

Everything from location and property type to lifestyle appeal and currency exchange rates plays a role in determining how much buyers pay.

• Location: Property prices differ sharply between major cities and interior regions. Homes in Lisbon or Porto can cost 30–100% more than suburban or rural equivalents.
• Property type: City-center apartments are usually 10–25% more expensive per m² than stand-alone houses, while new builds command a 25–50% premium over older homes.
• Size and features: Larger homes and high-end amenities raise values considerably. Luxury villas with sea views or private pools often sell for over €1 million.
• Tourism and lifestyle appeal: Coastal hotspots, especially the Algarve’s Golden Triangle (Vale do Lobo, Quinta do Lago, Almancil), can reach €9,850–€12,300 per m². Inland villages offer far more affordable options.
• Economic and policy factors: Steady GDP growth of around 2% (2024–2025) supports demand, alongside tax incentives. Meanwhile, the end of the Golden Visa property route has shifted some investment focus.
• Foreign exchange: Currency shifts directly affect budgets. At 2025 rates, €1 ≈ $1.17 or £0.85, making exchange planning important for international buyers.

How much does it cost to buy a house in Portugal?

Many buyers ask how much is it to buy a house in Portugal, and the answer goes beyond the purchase price itself. You should also budget for several extra costs and fees when buying a home in Portugal. These generally add around 8–10% of the property price. 

Here’s a breakdown of the complete cost of houses in Portugal:

• IMT Transfer Tax: 0–8% progressive, based on property value (discounts/exemptions may apply).
• Stamp Duty (IS): Flat 0.8% of purchase price. For example: €400,000 home → IMT + Stamp Duty = €21,706.50.
• U35 Incentive: First-time buyers under 35 get reduced IMT with a higher exemption threshold (up to €316,772).
• Notary & Registry Fees: Around €1,000 per transaction.
• Legal Fees: Usually 1% of the purchase price + VAT. Hiring a lawyer is strongly recommended.
• Property Valuation: Costs €300–€500, required for mortgage applications.
• Agency Commission: Paid by the seller, so there’s no direct cost to the buyer.
• VAT on New Builds: 23%, applied only to the construction value of new properties.

These expenses can vary depending on the property type (resale vs. new build) and the purchase structure, so it’s best to factor them into your budget early.

Rental yields in Portugal

Portugal offers solid opportunities for buy-to-let investors, with rental yields generally ranging between 4% and 8% per year. 

The return you can expect depends heavily on location, property type, and whether the rental is aimed at long-term tenants or short-term holidaymakers.

• Lisbon: In the city center, high property prices keep yields at 4–6%, while the wider metropolitan area performs slightly better at 5–7%. 
• Porto: With more moderate property prices, Porto often delivers stronger investor returns. Yields in the city center average around 5.9%, while the broader metropolitan area can reach 6.6%, supported by a mix of students, professionals, and tourist demand.
• Algarve: Coastal towns in the Algarve achieve yields between 5–7.5%. Short-term holiday lets can significantly boost annual income, though owners should factor in seasonal vacancies and higher upkeep costs for tourist-oriented properties.
• Inland regions: Areas such as Centro, Alentejo, and the north offer some of the highest returns at 6–8%, driven by much lower purchase costs and stable rental demand from local residents.

Overall, Lisbon and Porto remain attractive for investors focused on long-term growth and liquidity, while inland Portugal appeals to those prioritizing higher yields and affordability. The Algarve offers a balance of lifestyle and rental potential, particularly for those prepared to manage seasonal fluctuations.

Financing options and mortgages

Non-residents can access mortgages in Portugal, though conditions are stricter than for locals. Banks typically finance 60–70% of the property value, meaning buyers need a deposit of 30–40%. Loan terms often run 25–30 years, with repayments capped at about 30–35% of net monthly income.

As of September 2025, mortgage rates range from 3.8% to 5.5% TAEG (Taux Annuel Effectif Global), reflecting the Euribor plus a bank margin and including fees and insurance. This is lower than the 2023–2024 peak, with further easing expected as inflation cools.

Approval requires comprehensive documentation such as proof of income, tax returns, credit reports, and a property valuation. Buyers should also budget for mandatory life and property insurance, plus bank fees of €500–€2,000. Consulting a mortgage broker can help compare offers and secure better terms, and a larger deposit often leads to more favourable conditions.

Can a foreigner buy a home in Portugal? (process and requirements)

Foreigners face no restrictions when it comes to buying property in Portugal, but there is a clear process you need to follow to complete the purchase smoothly. 

Here are the key steps:

• Get a NIF (Portuguese tax number): This is the first requirement for any buyer. It’s needed to open a bank account, sign contracts, and pay taxes.
• Open a Portuguese bank account: All property-related payments, utilities, and taxes are processed through a local account.
• Find a property: Work with licensed real estate agents or reliable platforms to identify the right property for your budget and lifestyle.
• Make an offer and sign the CPCV (Contrato de Promessa de Compra e Venda): This is a legally binding preliminary contract and typically requires a 10% deposit.
• Finalize the deed (Escritura): The final sale takes place before a notary, after which ownership is registered in your name.
• Pay taxes and fees: Buyers must cover IMT (transfer tax), stamp duty, notary and registry fees, plus legal costs. These add around 8–10% to the purchase price.

Note: If you’re specifically buying property as an American, you’ll follow the same process, though it’s wise to account for exchange rates and U.S. tax considerations when budgeting.

How Touchdown supports your move to Portugal

Touchdown is Portugal’s premier relocation platform. With a dedicated team of legal experts, we take the complexity out of moving abroad by offering all the services you need to settle and succeed in your new home, through one intuitive platform.

Every relocation story is different. That’s why, whether you’re moving on your own or with your family, Touchdown builds a plan tailored to your specific goals and circumstances. Our free Eligibility Checker quickly outlines your options, while our in-house lawyers and step-by-step platform give you full clarity and guidance at every stage.  

For example, our legal team guides you through key steps like  securing your NIF and bank account, reviewing your rental contract, and ensuring you meet all local requirements.

From managing visa applications to optimizing your tax setup and supporting you after arrival, Touchdown turns complicated immigration processes into a seamless and stress-free journey.

You can book a 1:1 consultation with our experts for tailored advice today. 

How much is a house in Portugal FAQs

How much is a house in Portugal in US dollars?

In the first quarter of 2025, the median price of homes sold in Portugal was €1,951 per m², which at a conversion rate of 1 EUR = 1.17 USD equals about $2,285 per m². That means a 100 m² home would cost around €195,100 or $228,800. By comparison, the average price per square meter for a house in the United States is about $2,846, so a similar 100 m² home would cost roughly $284,600, showing Portugal is noticeably more affordable.

Is it wise to buy property in Portugal?

For many buyers, Portugal offers good long-term value. Prices are still lower than in much of Western Europe, rental yields can reach 4–8% in some regions, and demand remains strong from both locals and expats. As always, it is important to research locations and consider your long-term goals before purchasing.

Can I live in Portugal if I buy property?

Yes, owning property in Portugal allows you to live there as long as you also secure the correct residency visa. While buying a home alone does not grant residency, it can support visa applications such as the D7 Passive Income Visa or the D8 Digital Nomad Visa.