New data released by Statistics Portugal points to robust annual price growth alongside resilient transaction values, reinforcing confidence in the sector.

According to the latest House Price Index (HPI), residential property prices increased by 17.7% year-on-year between July and September 2025.

This represents a further acceleration on the previous quarter, rising by 0.5 percentage points compared to the second quarter, and highlights the enduring attractiveness of Portuguese real estate even as activity levels stabilise.

Existing homes were the main driver of price growth, with values rising by 19.1% year-on-year. New properties also posted healthy gains, recording a 14.1% increase over the same period.

The gap between the two segments reflects continued demand for established, well-located homes, while sustained growth in new builds signals ongoing confidence in Portugal’s residential development pipeline.

Credits: Supplied Image; Author: Client; Portugal's real estate values continued their upward trajectory in Q3 of 2025

On a quarter-on-quarter basis, the HPI rose by 4.1%, following a 4.7% increase in the previous quarter. Prices for existing dwellings climbed by 4.5%, while new homes saw a more moderate but still solid rise of 2.9%.

Commenting on the figures, Paul Stannard, chairman and founder of Portugal Pathways and the Portugal Investment Owners Club, said: “These figures indicate steady momentum in values, reinforcing property’s role as a reliable store of value for homeowners and investors alike.

“We saw a significant uptick in demand for luxury real estate, especially new homes, in Portugal last year, and it already looks set to be another busy year in 2026.”

Credits: Supplied Image; Author: Client; Record levels of demand for luxury new homes in Portugal is expected to continue in 2026

Transaction activity remained robust in value terms. During the quarter, 42,481 dwellings changed hands, representing a year-on-year increase of 3.8%. The total value of completed transactions reached €10.5 billion, up 16% compared to the same period in 2024.

Domestic buyers continued to play a dominant role in the market. Portuguese households accounted for 88.3% of all purchases, acquiring 37,507 properties with a combined value of €9.2 billion.

While purchases by buyers with tax residence outside Portugal fell compared to the previous year, the data overall points to a market that is increasingly mature, resilient and focused on long-term value.

To find out more about buying luxury new homes in Portugal, contact Portugal Pathways today.