The Portuguese property market is buzzing with activity as we move through spring 2025. New construction has hit a 13-year high, prices continue their upward march, and major development projects are reshaping both Lisbon's metropolitan area and the Algarve. Despite the rising costs, international interest remains robust, with Portugal cementing its position as a top destination for both traditional buyers and digital nomads. Even with a slight dip in foreign purchases, the diversity of options has never been greater. From urban regeneration to coastal developments and luxury branded residences, Portugal's property landscape is evolving rapidly. Read on for our comprehensive breakdown of the latest developments that every prospective buyer should know about.
Share this:
New housing completions hit 13-year high, Northern Portugal leads the charge
Viana do Castelo citadel gardens: Northern Portugal leads the housing construction boom
We remember a time not so long a go when finding a decent new build in Portugal felt like hunting for a unicorn riding a leprechaun. Those days are officially over. The National Statistics Institute reports a whopping 24,639 new family homes completed in 2024—the highest level since 2011 and a healthy 4.2% increase year-on-year. It's the third consecutive year exceeding 20,000 completions, which means more choice, modern amenities, and energy-efficient designs for international buyers.
Northern Portugal is playing property powerhouse, accounting for 43.7% of new builds, while Greater Lisbon (11.6%), Península de Setúbal (8.3%), and West and Tagus Valley (7.6%) follow behind. With another 34,000 homes currently licensed and in development, supply constraints should continue easing across popular regions. For buyers who've been frustrated by limited options in competitive areas, this could be the turning point where Portugal's property market starts to feel a bit more balanced. Not quite a buyer's market yet, mind you, but at least one where you won't need to make an offer before you've taken your shoes off at the viewing. We take a deeper dive on the most recent Portugal property market data in this blog post - Portugal property market snapshot: April 2025: Supply rises, prices shift.
Lonely Planet names Portugal's 11 most beautiful villages for 2025
Medieval Óbidos tops Lonely Planet's list of Portugal's most beautiful villages
Lonely Planet has unveiled its 2025 list of Portugal's most beautiful villages, showcasing the country's timeless rural charm beyond its major cities. Topped by medieval Óbidos—famous for its intact Moorish walls and ginjinha served in chocolate cups—the list celebrates Portugal's diverse architectural heritage from north to south. Finally, a ranking system that isn't based on broadband speed or number of coffee shops per capita!
Other standouts include boulder-balanced Monsanto, once crowned "most beautiful Portuguese village"; the whitewashed, cliff-cascading Azenhas do Mar near Sintra; stargazing haven Monsaraz in the Alentejo; and wine-centric Provesende in the Douro Valley. The Azores earns recognition with Sete Cidades, while Madeira's Porto da Cruz makes the cut for its dramatic natural setting. For property investors, these villages represent both opportunity and caution—they offer authentic Portuguese living and tourism rental potential, but often come with renovation challenges and strict preservation regulations.
Nevertheless, they remain among the most sought-after locations for buyers seeking authentic Portuguese character and charm, particularly for those looking beyond the typical coastal hotspots.
Portugal ranks eighth in digital nomad index, outperforming Spain on healthcare and cost of living
Lisbon's colourful streets and iconic trams continue to draw digital nomads from across the world
Portugal has snapped up the number eight spot in VisaGuide's annual Digital Nomad Index, cementing its status as a remote work haven. While it didn't clinch the top position (Spain did, somewhat inexplicably—perhaps the judging panel had recently enjoyed too much sangria?), Portugal outperformed its Iberian neighbour where it truly matters: cost of living and healthcare quality.
The ranking considers factors including internet speed, taxation policies, income requirements for visa applications, living costs, healthcare quality, and tourism appeal. For international property buyers with remote work flexibility, this ranking reinforces what many already know—Portugal offers exceptional value in a European setting, with infrastructure that supports the digital lifestyle.
The combination of affordable property prices (relative to other Western European nations), high-quality healthcare, and relatively lower living costs creates a compelling proposition for those looking to purchase a base for part-time or full-time remote work. As more companies embrace permanent flexible work policies, expect demand from this demographic to remain a significant driver in Portugal's property market. Check out our short guide to Portugal's digital nomad visa for more information.
House prices surge 9.1% in 2024, with existing homes outpacing new builds
If you were hoping Portugal's property market might be cooling off, prepare for disappointment—and perhaps pour yourself something stronger than an espresso. The House Price Index jumped 9.1% in 2024, accelerating from 2023's already substantial 8.2% increase. Existing homes led the charge with a 9.7% rise, outpacing new dwellings at 7.5%—a pattern that suggests demand continues to outstrip supply despite the construction boom.
The final quarter of 2024 saw even more dramatic movement, with prices rising 11.6% year-on-year. Transaction volumes tell an equally energetic story, with 156,325 properties changing hands in 2024 (up 14.5%), totalling a staggering €33.8 billion in value (up 20.8%). Most revealing is the fourth quarter's performance, when 45,214 dwellings were purchased—a remarkable 32.5% increase from the same period in 2023. While foreign buyer numbers dipped slightly (down 5.9% to 9,774 purchases), local household demand surged by 15.2%.
The message is clear: Portugal's property market is hotter than a sardine grill during festival season, and buyers who hesitate may find themselves paying significantly more next year.
Monthly price growth hits one-year high, reaching 2.1% in February
Covilhã's charming squares represent areas seeing rapid monthly price appreciation
February 2025 recorded a 2.1% month-on-month price increase—the highest monthly jump in over a year, according to data from Confidencial Imobiliário.
This brings the year-on-year appreciation to a breathtaking 13.6%, the steepest climb since September 2023. Between December 2024 and February 2025, approximately 42,365 homes changed hands across mainland Portugal—up 2.9% from the previous three-month period. The average sale price now stands at €2,634/m², with new housing commanding €3,759/m² and used properties averaging €2,747/m². What's particularly noteworthy is that this price growth comes despite the increased construction activity. It suggests that demand remains insatiable, absorbing new inventory without any cooling effect on prices. For international buyers, the message is straightforward: the longer you wait, the more you'll likely pay. Consider yourselves warned, procrastinators!
Ambitious "Tagus Cities Park" project to create 25,000 new homes around Lisbon
Vasco da Gama bridge in Lisbon: New river crossings planned in ambitious Tagus Cities Park project
Lisbon's metropolitan area is set for a dramatic transformation with the ambitious "Parque Cidades do Tejo" project. This massive urban regeneration initiative will span 4,500 hectares—55 times the size of Expo Park—across eight municipalities, delivering 25,000 new homes and creating 200,000 jobs. If you think that sounds ambitious, wait until you hear they're planning to finish it on time and within budget! (Now that would be truly revolutionary).
The project aims to reimagine the Tagus River as a connector rather than a divider, with two new crossings planned: the third road crossing (Chelas-Barreiro) and the Algés-Trafaria tunnel. Four intervention axes will create distinct zones, including the "Arco Ribeirinho Sul" (adding another 28,000 homes), "Ocean Campus," "Humberto Delgado Airport," and "Airport City."
Infrastructure upgrades will include expanded public transport networks and new cultural facilities such as "Ópera Tejo" and an international congress centre. With an initial allocation of €26.5 million and governance shared between the central government and municipalities, this project signals Portugal's commitment to large-scale urban planning. For international buyers, it presents intriguing long-term investment opportunities in areas that will benefit from improved connectivity and amenities.
Major 1,641-home development launches in Faro, creating Algarve's largest urban park
Drone view of Faro, where 1,641 new homes will transform the Algarve's capital
The Algarve's property landscape is getting a significant refresh with the Vale da Amoreira Urbanisation Plan (PUVA), one of Portugal's largest real estate projects. Located just one kilometre from Faro's city centre, this ambitious development will deliver 1,641 residential units across 21 hectares, with a potential construction area of 168,000 square metres. Finally, a project big enough to accommodate all those who've ever muttered "I wish I'd bought in the Algarve ten years ago..."
Developed by Finangeste in partnership with an undisclosed international investor, the project aims to create a mixed-use community with housing, retail, offices, student accommodation, healthcare facilities, and senior housing. The crown jewel will be a 10-hectare urban park—set to become Faro's largest green space—complete with bike lanes, playgrounds, and sports facilities. With approximately 60% of infrastructure work already completed, around 1,461 residential units will hit the market in the coming years at what developers promise will be “reasonable prices.”
Branded residences boom in Portugal, with 15 new projects in the pipeline
Comporta's pristine beaches and continued popularity with the jet set make it prime territory for future branded residences
Portugal is experiencing a luxury property revolution as branded residences—those affiliated with prestigious hospitality or lifestyle brands—surge across the country. According to Savills' "Branded Residences: Portugal Snapshot 2025," the country leads Europe with 15 new projects in the pipeline, set to add 1,200 units by 2031. Because nothing says "I've arrived" quite like living in a home with the same logo as your handbag.
The existing landscape features 11 operational developments, predominantly resort-based (72%), but the future mix shows greater diversity. The Algarve remains the focal point with seven upcoming projects totalling over 800 units, while Lisbon will gain four new developments with 174 residences. Interestingly, Portugal is embracing the global trend of "non-hotel" branded residences, with Karl Lagerfeld and YOO Studio both developing projects in Lisbon. For affluent international buyers, these properties offer a compelling blend of investment potential, prestige, and premium services. While certainly not for the budget-conscious, branded residences typically command 20-30% premiums over comparable non-branded properties and often demonstrate stronger value retention—an attractive proposition for those seeking both lifestyle enhancement and investment security.
Be the first to comment!