Lisbon. Photo: Freepik
The housing market in Portugal continues to grow, despite global economic turbulence, the country has long attracted foreigners with its mild climate, picturesque landscapes, and affordable cost of living. Portugal remains a popular destination for real estate investment, especially among Ukrainians looking for new opportunities for living or vacationing. The country has also been on the list of the most popular destinations for relocation among Europeans and Americans for several years in a row. This directly affects the cost of housing, especially in coastal cities and tourist centers.
According to the Portuguese National Institute for Statistics (INE), the average price of housing rose by 3.9% between January and June 2025. The main reasons are high demand from foreigners, limited supply of new buildings, and deferred domestic demand after a period of higher mortgage rates in 2023-2024.
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The average price per square meter in Portugal in January 2025 was €2,140, and in June it reached €2,224. This means that a typical 70 sq m apartment costs around €155,700.
Apartment prices in Portugal
Lisbon: the most expensive market
Lisbon, the capital of Portugal, remains the leader in terms of property prices. According to the Idealista portal, in June 2025, the average price per square meter in the city center is €4,500-6,000.
A 50 square meter studio apartment in prestigious neighborhoods such as Baixa or Chiado costs between €250,000 and €350,000. Two-room apartments in the center can reach €400,000-500,000, and three-room apartments can reach €700,000.
On the outskirts of Lisbon, for example, in the Amadora or Odivelas areas, prices are significantly lower — from €2,500 to €3,500 per square meter. A 50-square-meter studio apartment here will cost €125,000-175,000. However, such apartments may need renovation or have limited infrastructure, such as no lift.
Lisbon. Photo: Freepik
Porto: an affordable alternative
Porto, Portugal’s second largest city, offers more affordable prices. The average price per square meter in the city center is €3,000-4,000.
A 50 square meter one-bedroom apartment costs €150,000-200,000, a two-bedroom apartment costs €200,000-300,000, and a three-bedroom apartment costs €300,000-450,000.
Porto. Photo: Freepik
In more remote areas, such as Matosinhos, prices drop to €2,000-2,800 per square meter, making Porto attractive to those seeking a balance between price and quality of life.
Algarve: a tourist magnet
The Algarve region, famous for its beaches, is popular among foreign buyers, especially for investments in holiday properties. In the cities of Faro and Lagos, the average price per square meter is €2,500-3,500.
A one-bedroom apartment with an area of sq. m costs €125,000-175,000, and a two-bedroom apartment costs €200,000-250,000.
Algarve. Photo: Freepik
The most expensive properties are concentrated in elite complexes near the coast, where prices can reach €5,000 per square meter.
Budget regions: Braga, Coimbra, Setúbal
The cheapest apartments can be found in less popular cities such as Braga or Coimbra. The average price per square meter here is €1,200-2,000.
A 50 square meter one-bedroom apartment costs €60,000-100,000, making these regions attractive for those looking for budget housing.
Prices in Setúbal are slightly higher — €1,500-2,500 per square meter — but still significantly lower than in Lisbon or Porto.
Setúbal. Photo: Diego Delso
Features of buying real estate
Buying an apartment in Portugal for foreigners is relatively simple, but there are some nuances. For example, when buying a property worth €280,000 or more in certain regions (not in tourist areas), you can apply for a residence permit through the Golden Visa program. In 2025, this program is still in effect, although its conditions have become stricter.
To buy a mortgage, foreigners need to make a down payment of 35% of the cost of the property. The mortgage rate averages 3%, and the loan term can be up to 40 years.
Additional costs include property transfer tax (IMT) — 6-8% of the value, as well as notary and legal services — €1,000-2,000.
As we mentioned, the US rental market is characterized by significant regional differences. Coastal cities, especially in the Northeast and West, are traditionally more expensive due to their high population density and economic opportunities. In contrast, the interior of the country offers much more affordable rental options.
As reported, the UK remains one of the most attractive real estate markets in Europe. It boasts rising prices, investor activity, a relatively predictable legal system, and mortgage programs available to foreigners.