According to the Global House Price Index, an international study by Knight Frank – Quintela + Penalva’s partner in Portugal “ranks fourth in the global ranking, with a nominal annual increase of 16.5 per cent in house prices during the first quarter of 2026, surpassed only by Turkey (26.2 per cent), Hungary (21.4 per cent) and North Macedonia (16.7 per cent).”

Currently, the luxury market in Europe is led by Swiss cities, Lisbon and Madrid, as revealed by the same study, “with increases of between 4.8 per cent and 6.4 per cent over the last 12 months.”

More specifically, Lisbon “recorded a 3.4 per cent increase over the same period. It is the fourth European city with the highest rise in this segment and, globally, ranks 15th. In the final quarter of 2025, it was in 18th place.”

When adjusted for inflation, according to the same study, “Portugal also recorded one of the best performances worldwide, with growth of 13.4 per cent.”

Carlos Penalva, founding partner of Quintela + Penalva, stated in a press release that “the data from Knight Frank confirms a trend we have been observing on the ground: Portugal continues to establish itself as one of the most attractive residential markets in Europe, underpinned by a combination of quality of life, stability, security and a distinctive property offering”. He adds that “Lisbon, in particular, retains a strong ability to attract high-net-worth international investors and buyers, consolidating its position amongst the leading destinations in the prime residential segment. This performance demonstrates not only confidence in the Portuguese market, but also the maturity and resilience of the sector, which continues to attract high-quality, long-term demand.”

Europe is proving to be a standout at this stage of the international residential market. According to the same source, “The five markets with the highest annual price growth are all located on the European continent, with Portugal being one of the countries leading this trend, alongside Turkey, Hungary, North Macedonia and Croatia. In total, 12 markets recorded price increases of over 10 per cent over the past year.”