The price of housing per square metre has surpassed €2,000 in Portugal for the first time ever, according to data released by the National Statistics Institute (INE). The Lisbon region remains the most expensive in the country.
The figures refer to October 2025, when the median bank valuation for housing was €2,025 per square metre, €30 more than in the previous month.
The year-on-year jump was 17.7% in October, the same total seen in September.
Around 33,900 bank valuations were carried out in October. That’s a 2.8% increase compared to September and a 2.9% decrease compared with October 2024.
Apartments
In terms of apartments, Greater Lisbon is the region with the highest value per square metre (€3,058), followed by the Algarve (€2,757). Conversely, the Centre Region had the lowest value (€1,533).
Month-on-month, apartment valuations rose 1.6%, with the Autonomous Region of the Azores recording the largest increase (6.2%) — and Alentejo recording the only drop (-2.3%).
When looking at different models of apartment, T1 flats rose by €58 to €3,076/m2, while T2 and T3 increased by €35 and €39 respectively, to €2,425/m2 and €2,010/m2.
Apartments therefore posted a median value of €2,345/m2. The Setúbal Peninsula recorded the most significant year-on-year growth (29.3%), with no declines observed.
Houses
For houses, the median bank valuation was €1,472/m2 in October 2025, reflecting a year-on-year rise of 11.8%. The highest values were also observed in Greater Lisbon (€2,711/m2) and the Algarve (€2,499/m2). The West and Tagus Valley posted the biggest year-on-year growth (20.2%), with no declines recorded.
Greater Lisbon (€2,711/m²) and the Algarve (€2,499/m²) maintained the highest values, while the Centre (€1,084/m²) and Alentejo (€1,146/m²) recorded the lowest prices.
What does this increase mean?
The survey is based on bank-commissioned property valuations, and the fact that the average price per square metre has surpassed the significant €2,000 mark can influence the mortgage market. This is because banks may lend more money within the usual limit (generally between 80% and 90% of the valuation) in response to rising prices.
These figures point to a consistent appreciation of Portugal’s housing market, as well as growing pressure on prices in central urban areas, surrounding areas, and tourist destinations.
The lack of affordable housing has become a pressing issue for Portugal’s government, headed by Prime Minister Luís Montenegro. A shortage of stock continues to push prices up, while high foreign demand is also making properties unaffordable for locals on lower salaries.
How does it compare to the rest of the EU?
Among European Union members, Portugal is the country that is witnessing the steepest increase in house prices, according to Eurostat. In the second quarter of 2025, prices rose by 17.2% year-on-year.
Bulgaria (15.5%) and Hungary (15.1%) follow Portugal among the countries with the biggest rises in house prices in the bloc. Croatia (13.2%), Spain (12.8%), Slovakia (11.3%), and Czechia (10.5%) also recorded double-digit increases.
Finland (-1.3%) was the only EU country to record a year-on-year fall in prices in the second quarter of this year.
House prices more than doubled (141%) in Portugal between 2010 and 2025.
Over the same period, the largest increases in the EU were recorded in Hungary (277%) and Estonia (250%).