House prices in Lisbon increased 18.2% in 2025 and exceeded €5,000/M2 for the first time
The price of houses in Lisbon increased by 18.2% in 2025, registering the biggest increase since 2017, the year in which they grew 20.9%, reveals the most recent analysis by Confidencial Imobiliário on the capital’s residential market.
This evolution also represents a reversal of the trend of recent years, marked by a slowdown in appreciation in the market. After the post-pandemic recovery — a period in which prices went from an increase of 3.0% in 2020 to an increase of 11.7% in 2021 —, Lisbon recorded progressively more moderate annual increases, culminating in an appreciation of 5.5% in 2024.
The strong increase observed in 2025 was also reflected in the values of transactions carried out in the city.
For the first time, the average sales price surpassed the €5,000/m² barrier, reaching €5,207/m².
This level is exceeded in around half of the city’s parishes, led by Santo António (€6,646/m²), Avenidas Novas (€6,588/m²) and Campo de Ourique (€6,021/m²).
At the opposite extreme, Santa Clara remains the most affordable parish in the capital, with an average price of €3,882/m², and is also the only one with average values below €4,000/m².
House sales increase 11.8%
In 2025, 9,600 housing sales were made in Lisbon, which represents a growth of 11.8% compared to 2024.
Lumiar (9% of the city’s sales), Arroios and Benfica (shares of 7% each) were the parishes with the highest volume of transactions in the capital in 2025, but the most significant growth was recorded in Beato, Parque das Nações and Campolide, all with increases greater than 40% compared to the previous year.
New housing portfolio grows 62%
Confidencial Imobiliário also analysed the dynamics of investment in new residential development in the capital. In 2025, licensing requests were registered for 4,250 new homes in Lisbon.
This volume represents an increase of 62% compared to the 2024 portfolio, recovering levels of activity similar to those observed in 2018 and 2019, when the local pipeline was around 4,200 to 4,400 homes.
Of the total number of homes projected in 2025, 77% are part of new construction projects and 23% are part of rehabilitation projects.
The construction of larger projects is one of the trends of the new development in Lisbon, which concentrates 10 of the 39 projects with more than 100 apartments designed in Portugal last year.
These 10 projects total 1,510 homes, equivalent to 35% of the residential supply projected for the city in 2025. Two of these 10 projects have 250 apartments, while the rest vary between 110 and 180 units.
Source: Confidencial Imobiliário; Credits: Svetlana Gumerova, Unsplash
