The purchase of a house in Portugal has increased by 1.9% at the beginning of 2024.

The sale of houses in Portugal has dropped to its lowest level in the last seven years. This trend has led to a slowdown in the growth rate of housing prices in a country where the housing shortage is structural. This is reflected in the price index from idealista: prices for homes for purchase increased by 1.9% in the first three months of 2024 compared to the previous quarter, indicating a lower price growth compared to 2023 (+5.3%). With this development, the average cost of purchasing a house has settled at 2,610 euros per square meter by the end of March.

Homes for sale continue to become more expensive in most capital cities (albeit at a slower pace), including Lisbon (2.4%) and Porto (2.7%).

In the first quarter of 2024

Home prices for purchase have increased in 13 capital cities, with Vila Real (8.7%), Castelo Branco (3.8%), Évora (3.8%), and Viseu (3.6%) leading the growth. Prices for homes for sale have also risen in Leiria (2.9%), Porto (2.7%), Lisbon (2.4%), Coimbra (2.3%), Funchal (2.2%), Setúbal (1.8%), Braga (1.8%), Santarém (1.2%), and Faro (1%). On the other hand, homes for sale have become cheaper in Beja (-5.1%), Ponta Delgada (-4.6%), Guarda (-4.2%), and Portalegre (-1.8%) during this period.

Market prices

• Lisbon5,569 euros per square meter
• Porto: €3,546 per square meter
• Funchal3,260 euros per square meter

Among the capital cities with higher market prices are Faro, Aveiro, Setúbal, Évora, Viana do Castelo, Coimbra, Braga, Ponta Delgada, Leiria, Viseu, and Vila Real.

The most affordable cities

• Guarda773 euros per square meter
• Porto Alegre800 euros per square meter
• Castle Branco: 896 euros per square meter
• Running908 euros per square meter
• Bragança: 931 euros per square meter
• Santarem1,199 euros per square meter