What about real estate in Europe? Why Portugal dominates from far the 2025 rankings

The European real estate market remains very heterogeneous: some countries are experiencing stagnation or correction, while others are recording marked increases. Since the beginning of 2025, Portugal stands out for an exceptional acceleration in prices, which makes it one of the most dynamic countries in the European Union. Focus on official data.

Portugal leads the European market in price increases

According to data published by Eurostat and taken up by Idealista, house prices in Portugal rose by +16.3% in the first quarter of 2025 compared to the same period in 2024. This is the largest increase recorded in the EU, well above the European average of +5.7% and that of the euro area (+5.4%).

In a quarterly comparison (Q1 2025 vs Q4 2024), the Portuguese market also posted growth of +4.8%, confirming the strength of its momentum.

Sharp contrasts in the heart of Europe

Portugal largely dominates, but some countries are also showing sustained growth:

• Croatia: +13.1% year-on-year (Q1 2025)

• Hungary: +13.0% (Q4 2024)

• Bulgaria: +18.3% (Q4 2024), with a slowdown expected in early 2025

• EU average: +5.7%

• Germany: slight decline in Q1 2025, after several quarters of correction

These differences reflect the diversity of European markets, between expanding areas and regions still in the adjustment phase after the post-Covid surge.

This increase is not a one-off phenomenon. Since 2010, house prices in Portugal have risen by more than 130%, according to Eurostat. By comparison, rents have only increased by around 25% over the same period, accentuating the problem of housing affordability.

Buyers and investors, what to remember for your investment in Portugal in 2025?

• You are dealing with an attractive but demanding market : Lisbon, Porto and the Algarve concentrate international demand, but remain difficult to access for local first-time buyers.

• The country offers differentiated opportunities, suitable for various types of projects: inland and less touristic areas still offer more affordable prices and medium-term growth potential.

• The financing environment is constraining : interest rates in Europe remain high, which requires buyers to have a greater ability to provide and to be financially solid.

At the beginning of 2025, Portugal is therefore the most dynamic real estate market in the European Union, with an annual increase of +16.3%. A trend that confirms its international attractiveness, but also raises issues of accessibility and sustainability. For investors, the country remains a leading destination, provided that they target their project and their location.

At Unyk-Place, we are here to support you from the beginning to the end of your project. Our reliable and professional team will be able to guide you on the Portuguese real estate market, to allow you to make your life or investment plan a reality. Contact us directly to talk about it.

Sources

Eurostat, House Price Index – Q1 2025 and Housing price statistics (2010–2025)

Idealista, "Portugal lidera subidas de preços de casas na União Europeia" (July 2025)