In the first three months of this year, the rise in house prices hasn't let up in most national markets. According to the Residential Price Indices calculated by Confidencial Imobiliário at a municipal level, in the 1st quarter of 2025, 257 of the 278 municipalities monitored in mainland Portugal, or 92% of the markets, recorded year-on-year increases higher than those observed in the 4th quarter of last year.
This trend is predominant both among the district capitals and in the markets of the Lisbon and Porto metropolitan areas, as well as in the Algarve. The capital of the latter region, Faro, is precisely one of the cities in the country with the greatest increase in the rate of price growth, going from a rise of 11.5% at the end of 2024 to an annual growth of 22.9% over the period in question. Other district capitals with strong increases in valuation are inland cities, such as Portalegre, Beja, Santarém, Castelo Branco and Vila Real, which recorded valuations of between 15% and 24% in the first quarter of this year.
The country's two main cities also accelerated their price rises in the 1st quarter of this year. In the case of Lisbon, appreciation reached 8.6% and in Porto 10.7%, compared to 5.5% and 7.8% respectively in the 4th quarter of 2024. In the Oporto metropolitan region, all the markets recorded an acceleration in their appreciation rates, now led by Vila do Conde (+24.9%), while in the Lisbon region, where Mafra had the highest price increase (+22.1%), Moita, Alcochete and Seixal were the exceptions, maintaining or cooling their appreciation levels in this period.
Other exceptions to the general trend were the district capitals of Aveiro and Leiria, as well as Portimão in the Algarve. While all these municipalities maintained positive trajectories, in Aveiro the increase is now 2.0%, one of the lowest in the country, in Portimão it is 3.3% and in Leiria the increase is 6.9%.
“The 1st quarter still shows a warming of prices in practically the entire country, leading to a national year-on-year appreciation that peaked at around 16% in March,” says Ricardo Guimarães, director of Confidencial Imobiliário, noting, however, that “this is a scenario that may be changing”. “The monthly Residential Price Index for Portugal shows a cooling of the monthly rate of change, which reached 0.2% in May, down from 1.4% in April, which had already slowed from 2.7% in March, and it now remains to be seen whether this is a new trend in price behavior,” he explains.
Image credits: © Simone Hutsch | Unsplash
Translated with DeepL.com (free version)
