Is 2026 Still a Good Time to Invest in Portugal?

This is one of the first questions many buyers ask when considering the Portuguese real estate market. The answer is yes, but not for the same reasons it was five years ago.

In 2025, residential property prices in mainland Portugal increased by 23.4%, marking the strongest annual growth since 1988. Transaction volumes also reached an estimated record of 165,000 homes sold. These are not the signs of a slowing market; they reflect a market experiencing strong momentum.

What Has Changed Since 2020-2022?

A few years ago, Portugal was still widely viewed as an emerging real estate market, undervalued compared to major European capitals.

Today, average prices in Lisbon stand at €5,207/m², while the Algarve, at €3,266/m², has become the country's second most expensive market. The era of easily finding undervalued opportunities has largely passed. However, this does not mean investment opportunities have disappeared; it means investment decisions require greater selectivity and planning.

Three Factors That Continue to Support the Market

Demand Still Exceeds Supply

Portugal's residential development pipeline expanded by 12% in 2025, but this increase remains insufficient to close the gap between housing demand and available supply.

As long as this imbalance persists, property prices continue to benefit from a structural support factor.

Mortgage Financing Is Becoming More Accessible

Average monthly mortgage payments declined by €9 compared with 2024, while total mortgage lending increased by 9.8% year-on-year.

This improved access to financing continues to support market activity.

International Demand Remains Strong

Portugal continues to attract buyers from France, the United Kingdom, the United States, and Brazil.

The factors driving this demand remain unchanged: quality of life, safety, and favorable living conditions continue to make Portugal an attractive destination for international buyers.

Our Perspective

Investing in Portugal in 2026 requires a more strategic approach than it did in 2020.

Success no longer comes simply from buying property in Portugal, it comes from selecting the right asset, in the right location, with a clearly defined strategy. The focus should be on building a coherent long-term project rather than simply completing a transaction.