Nationally, Portugal saw a 15.8% annual increase in house prices as of March 2025, with key regions like Lisbon, Algarve, Alentejo, and Porto leading the way, outperforming the broader EU market.
New analysis by Property Market-Index, a global luxury real estate research firm, has found that Portugal has seen a rapid increase in property prices in the last 12 months, while the EU is forecasted to see property price growth of 4.5%, and the UK just 2.9%.
At the end of Q1, average UK house prices rose by just 5.3% year-on-year, while US house prices grew by only 2.7% over the same period, primarily due to higher interest rates and market uncertainty
Property Market-Index’s findings are heavily supported. According to a recent 2024 Ernst & Young survey, 84% of investors said they plan to establish or expand operations in Portugal over the next year, compared to 72% for the rest of the Eurozone.
77% of respondents also expected Portugal’s attractiveness to improve over the next three years, compared with just 49% three years ago. This would overtake the Eurozone, which had been at 67% last year based on the same metrics.
CaixaBank Research projects Portugal’s GDP to grow by 2.4% in 2025, significantly higher than the Eurozone’s projected growth of 0.8% and 1.3% over the same period.
Comparatively, the UK Treasury’s April 2025 survey of independent forecasts indicates an average growth expectation of 0.8% for 2025, underscoring Portugal’s stronger economic trajectory.
Property Market Index’s latest report ranked property hotspots in Portugal based on their capital growth potential, cultural and educational offerings, heritage, robust investment opportunities, land availability, infrastructure, connectivity, amenities, health and well-being, sustainability, safety and security.
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