Up Up and Away ….house prices continue to balloon in Portugal

House prices in Portugal hit record again with climb of 17.2%

It goes on and on without any sign of stopping. The reason? Demand for residential properties in Portugal has grown 15.1% while supply continues to dry up.

Nevertheless, house purchases from overseas residents show a very real sign of cooling in the market, falling 14.5%.

This is according to Portugal’s National Statistics Institute which published a new record for the second quarter of the year with a 17.2% increase in the house price index, a 4.7% increase on the first quarter of the year.  In the first quarter of the year house prices were growing by 16.3% on the same period in 2024.

The new price increases occur in tandem with several measures to support the purchase of a first home for those up to 35 years old, including a public guarantee measure to facilitate access to mortgages, but also tax measures such as the IMT property transfer tax exemption.