Portugal’s property market continues to surpass that of its European peers, with new data indicating that sustained demand in both the luxury and new-build segments is driving national valuations to unprecedented levels.
The most recent report from Property Market-Index shows that median bank valuations reached €2,025 per square metre in October, representing a 17.9% increase compared with the same month in the previous year.
This builds on the strong results recorded in September and underscores the resilience of the Portuguese market at a time when several European countries are experiencing stagnation or decline.
The data reveals that no region in Portugal registered a monthly or annual fall in valuations. The Setúbal Peninsula recorded the most significant annual rise at 26.7%, while the North Region posted the strongest month-on-month increase at 2.5%.
Major centres such as Lisbon, Porto and the Algarve also maintained robust momentum, supported by ongoing interest from both domestic purchasers and international investors.
Danielle Moxey, research representative at Property Market-Index, stated that the findings confirm “the steady momentum in Portugal’s residential market, particularly in the luxury and new-build segments,” and emphasised that the nationwide growth indicates “continued confidence from both lenders and buyers”.
She noted that demand is no longer restricted to traditional hotspots, adding: “The strong performance in the Setúbal Peninsula, along with month-on-month growth in the North, indicates that demand is broadening across the country rather than concentrating in a single location.”
This surge in valuations coincides with a year in which Portugal has recorded the highest property price growth in the European Union. During the first half of 2025, prices rose by 16.3% year-on-year, exceeding the EU average of 5.1% by more than threefold. Portugal’s performance outshone other rapidly expanding markets, including Bulgaria, Croatia, Spain and Slovakia.
Paul Stannard, chairman and founder of the Portugal Investment Owners Club and Portugal Pathways, observed the growing international appeal of the country, stating: "This level of growth reflects the continued global shift towards high-quality, lifestyle-driven destinations — and Portugal sits firmly at the top of that list.
International buyers aren’t just seeking property; they’re seeking stability, safety and long-term value, all of which Portugal continues to deliver.”
Industry analysts attribute the sustained growth to a combination of factors, including strong international investor appetite, lifestyle-led relocation trends, the continued expansion of the luxury residential sector and a restricted supply of high-quality new developments.
Collectively, these dynamics are reinforcing price appreciation while supporting strong rental yields and long-term capital growth.
As the market enters the final quarter of the year, the broad-based acceleration across multiple regions suggests renewed confidence and strong momentum heading into 2026.
Portugal’s position as a leading destination for property investment, enhanced by its favourable climate, high quality of life and expanding new-build sector, appears firmly established and shows no indication of weakening.
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About Portugal Investment Owners Club
The Portugal Investment Owners Club, or P Club for short, is a unique investor membership community designed for discerning individuals, families, and organisations committed to exploring and capitalising on life in Portugal and enjoying money-can't-buy experiences and exclusive events.
About Portugal Pathways
Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and provides expert guidance through its professional supply chain network on estate planning, wealth management, Golden Visa and tax optimisation, including post-NHR / IFICI tax regime planning, as well as private healthcare, money transfers and bespoke relocation and luxury real estate solutions to enhance life and investment in Portugal
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