The Portuguese real estate market has grown significantly in recent years, particularly in major cities such as Lisbon and Porto. Portugal has become a destination of choice for foreign property investors, attracted by competitive prices compared to other European markets, favourable taxation and a recognised quality of life.
Article updated March 2026 – 2026 prices by district added. 2022 data retained as historical reference.
In short: In 2026, the national average price reaches €3,076/m² (+12% year-on-year). Lisbon averages €6,059/m², Porto between €3,940 and €4,200/m², the Algarve around €3,400/m² (Faro district). Rents are stabilising after several years of strong growth: Lisbon at €20–22/m², Porto at €15/m².
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Property prices in Portugal in 2026
Purchase prices by district in Lisbon in 2026
The average price in Lisbon in 2026 is approximately €6,059/m², with significant variation by district:
| District | Price/m² 2026 | 2025 change |
|---|---|---|
| Alcântara | ~€7,500 | +25% |
| Avenidas Novas | ~€6,800 | +8% |
| Estrela | ~€6,500 | +15% |
| Belém | ~€6,400 | +7% |
| Parque das Nações | ~€5,800 | +3% |
Purchase prices by district in Porto in 2026
The average price in Porto in 2026 is approximately €4,200/m²:
| District | Price/m² 2026 | 2025 change |
|---|---|---|
| Foz do Douro | ~€5,500 | +18% |
| Cedofeita | ~€4,800 | +14% |
| Ribeira | ~€4,500 | +12% |
| Bonfim | ~€3,500 | +10% |
Purchase prices in the Algarve in 2026
The Faro district averages approximately €3,400/m² in 2026:
| Town | Price/m² 2026 | 2025 change |
|---|---|---|
| Lagos | ~€3,800 | +18% |
| Albufeira | ~€3,500 | +16% |
| Tavira | ~€3,200 | +20% |
Rental prices in 2026
| Area | Rent/m² 2026 | Average 2-bed | 2025 change |
|---|---|---|---|
| Lisbon | €20–22 | ~€1,600/month | +0.2% |
| Porto | ~€15 | ~€1,100/month | -1.6% |
| Cascais | ~€18 | ~€1,450/month | +2% |
| Algarve | ~€11 | ~€900/month | +5% |
Estimated rental yield 2026: Porto 5–6.5% | Lisbon 4–5% | Cascais 3.5–4%
Key 2026 tax reforms for investors
- 6% VAT on construction of moderate-rent housing (≤ €2,300/month) — down from 23%
- 10% rental income tax (IRS category F) for long-term moderate-rent leases — down from 25–28%
- Fixed 7.5% IMT for non-residents, regardless of property value
- Golden Visa: residential property no longer eligible — only funds and productive investment qualify
The most profitable strategy in 2026 is long-term rental at moderate rates: reduced VAT on construction + 10% rental tax = better net yield over 2026–2029.
Portuguese real estate market in 2022: historical reference data
The data below corresponds to prices observed in November 2022 and is retained as a historical reference to measure market evolution since that period.
Real estate market prices in Lisbon in 2022
The average price per sqm in Lisbon was €3,843/m² in November 2022 (+3.6% vs November 2021):
- Ajuda: €4,183/m² (+5.5%)
- Alcântara: €6,841/m² (+28.6%)
- Areeiro: €4,593/m² (-0.3%)
- Avenidas Novas: €6,470/m² (+6%)
- Belém: €6,407/m² (+6.2%)
- Campolide: €5,848/m² (-0.6%)
- Estrela: €6,191/m² (+18.5%)
- Parque das Nações: €5,769/m² (-5%)
- Santa Maria Maior: €5,832/m² (+2.2%)
Property market prices in Porto in 2022
Average price in Porto in November 2022: €2,390/m² (+5.2%):
- Aldoar – Foz do Douro – Nevogilde: €4,204/m² (+14.3%)
- Bonfim: €3,113/m² (+5.3%)
- Campanhã: €2,660/m² (+1.4%)
- Lordelo do Ouro e Massarelos: €3,484/m² (+1.7%)
- Paranhos: €2,865/m² (+3.5%)
- Ramalde: €2,750/m² (+17%)
Real estate market prices in the Algarve in 2022
Average price in the Faro district in November 2022: €3,044/m² (+17.7%):
- Albufeira: €3,006/m² (+16%)
- Faro: €2,542/m² (+17.5%)
- Lagos: €3,449/m² (+20.8%)
- Olhão: €2,570/m² (+18%)
- Portimão: €2,362/m² (+6.6%)
- Tavira: €2,807/m² (+21%)
The Portuguese property market in brief
The residential property sector has seen significant price increases in recent years, but remains broadly affordable compared to other European destinations. Portugal offers a wide variety of properties, from modern flats to traditional houses, villas and luxury properties. Residency programmes for foreign investors remain available, though the Golden Visa has shifted in 2026 to focus on funds and productive investment rather than residential property.
Rent prices in 2022 in Portugal — historical reference data
The average rental price in Portugal in November 2022 was €12.5/m², up 16.3% vs November 2021.
Rent prices in Lisbon in 2022
Average: €17.3/m² (+29.3%):
- Ajuda: €17.4/m² (+34.2%)
- Alcântara: €16.4/m² (+26.5%)
- Areeiro: €15.2/m² (-30.4%)
- Avenidas Novas: €18.6/m² (+39.3%)
- Belém: €16.5/m² (+22.9%)
- Campolide: €17.8/m² (-32.2%)
- Estrela: €20.1/m² (+36%)
- Parque das Nações: €16.8/m² (-25.7%)
- Santa Maria Maior: €24.4/m² (+44.8%)
Rent prices in Porto in 2022
Average: €13.4/m² (+26.9%):
- Aldoar – Foz do Douro – Nevogilde: €15.9/m² (+31.7%)
- Bonfim: €12.6/m² (+25.8%)
- Campanhã: €12.4/m² (+28.9%)
- Lordelo do Ouro e Massarelos: €11.6/m² (+11.1%)
- Paranhos: €11.6/m² (+14.5%)
- Ramalde: €10.6/m² (+18.2%)
Rent prices in the Algarve in 2022
Average in Faro district: €11/m² (+12.1%):
- Albufeira: €10.2/m² (+17.3%)
- Faro: €9.3/m² (+3.2%)
- Lagos: €11.4/m² (+17.6%)
- Olhão: €10.7/m² (+25.2%)
- Portimão: €10.4/m² (+22.3%)
- Tavira: €10.3/m² (+15.6%)
Rent prices in Portugal in 2022 in summary
The rental market in Portugal had grown significantly in 2022, particularly in major cities. Strong demand from students, workers and foreign expatriates, combined with limited supply, drove widespread rent increases. In 2026, this dynamic has stabilised — rents are growing at a more moderate pace and have even dipped slightly in Porto after the 2022–2024 peak. Rents remain higher in larger cities and the most popular neighbourhoods.
