In Portugal, where are house prices the steepest?
In Portugal's ever-evolving real estate market, significant regional variations have emerged, with Lisbon and Porto metropolitan areas leading as the most expensive regions, while northern and interior cities remain more affordable.
As of mid-2025, the median house price in Lisbon stands at an impressive €4,935 per square meter, making it the most expensive city in Portugal [1]. Porto follows closely behind with a median price of approximately €3,937 per square meter, exhibiting steady growth [1][4]. The Algarve region also boasts high prices, averaging about €4,385 per square meter [1].
Northern Portugal, including cities like Porto, Aveiro, and Braga, has an average price of €1,903 per square meter [1]. Porto specifically averages €395,000 per house, while Aveiro and Braga hover around €340,000 [1][2].
Central Portugal and Alentejo have median house prices of approximately €2,098 per square meter and €3,181 per square meter, respectively [1]. More affordable cities like Guarda and Vila Real in the North remain the cheapest, offering significantly lower house prices than most metropolitan areas [2].
The robust demand and rising prices in the Portuguese real estate market have led to affordability challenges, particularly for young locals in major urban centers. Despite a 18% year-on-year increase in the average house price nationally, local wage growth has not kept pace [2]. Lisbon and Porto rental markets exceed young locals' capacity by 70% and 60%, respectively [4].
In terms of price-to-income ratios, Lisbon requires over 15 years of salary to afford a home, while Porto demands over 12 years, highlighting a severe affordability crisis [4].
Despite these challenges, the market continues to see strong demand and rising prices. In June 2025, house prices for sale rose in 15 large cities across Portugal [5]. Notable increases include Setúbal (20%), Funchal (7.6%), and Viana do Castelo (10.1%) [5].
Meanwhile, cities like Castelo Branco and Portalegre remain the most affordable, with house prices of €880 per square meter and €843 per square meter, respectively [2][5].
In summary, Lisbon and the Algarve remain the priciest areas, reinforced by strong price appreciation in Porto and parts of Northern Portugal. Meanwhile, interior northern cities like Guarda and Vila Real provide more affordable housing options. The market continues to see strong demand and rising prices, with affordability challenges for young locals particularly acute in major urban centers [1][2][4].
In the evolving housing-market of Portugal, Porto, with a median house price of approximately €395,000 and €3,937 per square meter, exhibits steady growth beside Lisbon, which stands at an impressive €4,935 per square meter [1]. Meanwhile, cities like Guarda and Vila Real in the North remain the cheapest, offering significantly lower house prices [2]. This stark contrast highlights the affordability challenges young locals face, especially in major urban centers like Lisbon, where 15 years of salary are required to afford a home [4].
