The year-on-year rate of change of 20.6% recorded for July is close to the peak of 21.1% reached by the Portuguese market only twice in the last 37 years, namely in November 1991 and August 2022.
The cumulative rise in housing prices over the last year reflects a cycle of strong monthly increases, particularly evident throughout 2025, during which time the chain variation rates exceeded 2.0% on several occasions. July consolidates this pattern, reaching a monthly increase of 2.6%, accelerating from the 1.8% rate recorded in June.
The acceleration in transaction prices continues to occur in a context of growth in residential sales, further highlighting the gap between high demand and the structural shortage of new supply. According to projections made by Confidencial Imobiliário based on the SIR-Residential Information System, 41,970 homes were sold in mainland Portugal in the three months between May and July this year, a volume that exceeds the transactions recorded in the previous three months by 5.4%.
In this period from May to July 2025, homes were sold for an average price of €2,804/m2, reaching €3,644/m2 in the new housing segment and €2,645/m2 in the used housing segment.
Image credits: © Jakub Zerdzicki | Unsplash
Translated with DeepL.com (free version)
