The Portuguese Real Estate Market showed renewed strength in July 2025, with bank appraisals recording notable gains across most regions. According to the latest data from INE, the median appraisal value reached €1,945 per square meter, representing an 18.7% increase compared to the same month last year. This performance highlights the resilience of the housing sector, a key indicator for overall real estate dynamics.
For investors, these results carry significant weight in shaping future real estate investment strategies. Rising appraisal values not only reflect sustained demand in Lisbon and the Algarve but also underline growing activity in secondary markets. With nearly 34,000 appraisals conducted in July, the market’s broad base suggests continued liquidity, though regional disparities remain central to strategic decision-making.
Apartments Lead Market Expansion
Apartments remain the primary driver of price momentum in the Portuguese Real Estate Market. The median appraisal value for apartments reached €2,254/m², marking a robust 24% year-on-year growth. The strongest levels were recorded in Greater Lisbon (€2,990/m²) and the Algarve (€2,642/m²), underscoring the sustained appeal of these markets to both domestic and international buyers. By typology, one-bedroom units (T1) saw the sharpest increase, up €71 to €2,866/m², indicating demand resilience in smaller, more liquid units.
Detached Houses Show Moderate but Steady Gains
In contrast, detached houses grew at a slower pace, but still contributed to the strength of the Portuguese Real Estate Market. The median appraisal value stood at €1,414/m², a 10.4% annual increase. While growth was more moderate, regional variations are notable: Lisbon (€2,707/m²) and Algarve (€2,505/m²) led the market, while Centro (€1,053/m²) and Alentejo (€1,149/m²) remained well below the national median.
Regional Divergences Remain Sharp
At the NUTS III level, Greater Lisbon exceeded the national median by 52%, followed by the Algarve (+34.5%) and Setúbal Peninsula (+18.8%). On the other end of the spectrum, Beiras e Serra da Estrela and Beira Baixa recorded appraisal levels roughly 50% below the national average. This divergence reinforces the structural polarization within the Portuguese Real Estate Market, contrasting high-demand coastal regions with weaker interior areas.
Implications for Investors
- Liquidity remains concentrated in Lisbon, the Algarve, and Setúbal, making these regions attractive for short-term capital appreciation.
- Yield strategies may favor undervalued interior markets, though investors must account for weaker demand fundamentals and longer holding periods.
- Apartment demand — particularly for smaller typologies — signals resilience in urban centers, aligning with both rental market dynamics and investor exit strategies.
- House price stability in suburban and rural markets may offer diversification opportunities, especially for investors targeting medium-term development or repositioning plays.
Strategic Outlook
Looking ahead, the Portuguese Real Estate Market faces questions about whether the current pace of appraisal growth is sustainable amid broader credit conditions. While July’s data confirm strong fundamentals, the divergence across regions highlights the need for risk-adjusted allocation. Key watchpoints include potential policy changes on housing affordability, interest rate stability, and continued demand from international buyers.
The July 2025 data reinforce the resilience of the Portuguese Real Estate Market, while underlining the importance of strategic portfolio positioning. Concentrated growth in Lisbon and the Algarve offers momentum plays, while selective exposure to undervalued regions may provide longer-term upside. Beyond the residential segment, commercial real estate represents an excellent alternative for portfolio diversification, providing stable income streams and exposure to broader economic trends.
For more data-driven insights and access to investment opportunities in Portugal, contact Roca Estate – your partner in building a resilient and diversified real estate portfolio.
