Prices continue to rise despite fluctuations in transaction volumes. The Confidencial Imobiliário price index rose by 3.5% in the quarter, and annual growth reached 18.6% in June. In May 2026, the median bank valuation of real estate updated its historical maximum, reaching 2,208 euros per square meter. At the same time, apartments are becoming more expensive than houses: an annual increase of 19.7% (to 2,580 euros per square meter).
The regional picture remains heterogeneous. The sharpest price increase was recorded in the Oeste y Vale do Tago region (+26.3%), while in Lisbon, asking prices decreased by 5.9%, and in Madeira by 6.7%. At the same time, 85% of the total demand for housing is still concentrated on the coast, where the average request price is 260,000 euros, while in the interior - only 155 000 euros.
Analysts note that the market no longer obeys simple rules. Prices are at record highs, but the number of transactions is slowing, foreign buyers are reducing their presence, and domestic demand continues to support activity. The market is becoming more and more fragmented. In fact, these are several different markets operating simultaneously, each with its own dynamics.
At the same time, regulators are tightening lending conditions: the central bank has lowered the maximum debt burden ratio from 50% to 45%, which may cool demand in the coming months. Nevertheless, the structural shortage of supply remains: the volume of new construction remains far from the peak values of the early 2000s, which means that the fundamental factors of price growth in the long term do not disappear.
Sources: Confidencial Imobiliário, The Portugal News
