Portugal’s real estate value continues to rise and turn heads across Europe. While other markets crumble under inflation, Portugal House prices continue to rise month after month. Over the past month, real estate value has increased once again, with apartments averaging around €2,926 per square metre. This means that the growth in prices compared to last year has been up to 8.5%. The growth is due to a number of factors such as limited housing supply, low interest rates, and better mortgage terms. Numbers don’t tell everything, Portugal’s real estate rise tells a different story. It shows the country has massively adapted to the changes. The growth that started in late 2024 is still going, thanks to high demand and continued interest from foreign investors.
Most Expensive Cities To Buy Property
- Lisbon remains at the top. The capital’s average asking price has risen to €5,829 per square metre. Whether entrepreneurs are setting up shop or families are settling into zones with international schools, Lisbon is the heavyweight.
- Cities such as Setúbal (€2,920/m²) and Aveiro (€2,554/m²) are thriving. They are incredibly appealing to families and retired people who are searching for a peaceful life while enjoying the coastal charm.
- The Algarve city of Faro continues to be in the spotlight. Properties there are now valued at €3,264/m². It’s not a surprise considering the stunning beaches and established foreign communities that have settled, especially in Lagos and Vilamoura.
- Porto is a city that has a mixture of culture, history, and the tech sector that continues to rise. Metropolitan prices now sit near €3,804/m².
- When you have a view of the ocean from where you live, the demand is higher. The Island capital of Funchal in Madeira is valued at around €3,679/m²
Affordable Portuguese Cities
Not everyone can afford an expensive life in Portugal. It is a city considered for its affordability. Here are some cities that offer affordability.
Cities like Coimbra, Braga, and Viseu have become popular destinations for people who do not want to spend too much money. Prices sit between €2,000 and €2,500 per square metre, offering great value for those willing to look beyond the capital.
- These are counted as real bargains. In towns such as Portalegre (€871/m²), Castelo Branco (€906/m²), Guarda (€957/m²), and Bragança (€989/m²). Ideal for remote workers, early retirees, and hospitality investors. These towns are home to a lot of non-EU people who choose the Portugal D7 Visa, which gives a residency permit to passive income upon a certain investment.
- Santarém (€1,525/m²) and Viseu (€1,537/m²) are seeing interest. Investors believe that these areas will get a regional surge over the next couple of years.
Portugal’s New Route For Global Citizens
The times when you used to obtain residency by investment through real estate are over. In 2023, Portugal officially removed real estate investment from its Golden Visa program. Closing a chapter that redefined the market for years. However, the Golden Visa program still plays a huge role in the country’s economic growth, and investors have simply shifted the focus in terms of investment options.
Despite the relinquishing of real estate investment, it still plays a vital role in the Portugal Golden Visa scheme as the new frontier is Hospitality investment. Investors seeking a pathway into Portugal, along with visa free access to Europe, are now investing their money into projects that are helpful for the country’s future. Hospitality investments such as:
- Hotels
- Wellness resorts
- Luxury gyms
- Museums
- Art centres
How Real Estate Investment Can Lead to Portugal Residency via the D7 Visa
Portugal’s real estate market is not just attracting investors for its prices, but it’s also becoming a path for foreign investors who want to live in Portugal. Through the Portugal D7 Visa, individuals who have a stable passive income, which can be through rental, pensions, are eligible for residency in Portugal. This makes real estate a powerful tool used for relocation and wealth generation. Investors can purchase property, earn rental income, and simultaneously satisfy one of the key requirements for the D7 Visa.
Portugal Residency for Digital Nomads with Remote Work
Remote workers can get Portugal residency via the D8 Digital Nomad Visa and live with family in Portugal for a specified time. Digital workers earning €3480 a month or more qualify for a short-term or a long-term Portugal residency. Short term Portugal residence permit is issued for 1 year and can’t be renewed; however long-term residence permit is issued with a 2-year validity and is renewable. As per the existing Portugal nationality law, 5-year residency qualifies digital nomads for Portuguese citizenship.
