A press release reveals that investment volume in 2025 increased by 22% compared to 2024, 10% above the “average for the last ten years.”

Dils also notes that “the fourth quarter of the year saw the return of national capital, particularly domestic funds, which had taken a more cautious stance in recent years, accounting for 44% of total foreign investment.” However, the market remained dominated by international capital, accounting for around 60% of total investment.

Pedro Lancastre, CEO of Dils Portugal, quoted in the press release, states that “the 2025 results confirm the resilience and maturity of the market. In a challenging economic and geopolitical context, investment growth demonstrates the continued confidence of both domestic and international investors. Portugal continues to position itself as a safe and competitive destination, with demand across various segments.”

Residential market

Although there has been an increase in licensed and completed homes, “the residential supply in Portugal remains structurally limited, and the gap between supply and demand remains significant, with only one home completed for every six sold.”

Dils notes that demand for property remains high, “driven mainly by domestic households and supported by public measures that facilitate access to home ownership, particularly among younger buyers.”

In the Portuguese capital, the market remains resilient, “driven by the shortage of supply in central areas.” Despite strong consumer demand, buyers are more price-conscious and are making “more selective and informed decisions.” Dils also notes that demand from domestic buyers has increased, while demand from foreign citizens has slowed. Currently, the average price of housing in Lisbon is €5,200/m2.

In Porto, “the market continues to expand, although it is also subject to supply constraints.” Domestic buyers remain strong in their demand for housing, with “a slight upward trend compared to 2024, averaging €3,700/m².”

The Algarve continues to experience a “mismatch between supply and demand.” Prices remain stable and vary “between €5,500/m² in Portimão and over €13,000/m² in the Golden Triangle.”