Portugal Leads EU for Property Price Growth in 2025

Portugal Tops EU Property Charts with 16.3% Growth, Driven by High Demand, Limited Supply, and Investor Confidence

LONDON, UNITED KINGDOM, July 18, 2025 /EINPresswire.com/ -- Portugal recorded the highest property price growth in the European Union in the first quarter of 2025, with a remarkable 16.3% year-on-year increase, well above the EU average of 5.7%.

New analysis by Property Market-Index, a global luxury real estate research firm, reveals that real estate prices in Portugal have surged significantly over the past 12 months.

The country has seen the highest price increases throughout the EU, followed by Bulgaria (15.1%), Croatia (13.1%), Spain (12.3%), and Slovakia (12.2%).

According to analysis by the leading Property Market-Index representative and international property expert, Amanda Collison, in the latest 2025-26 Portugal Property Hotspots report, this growth is not an anomaly but rather the result of a perfect storm of positive fundamentals:

“It’s no surprise that Portugal’s property market is expanding at the current rate, given the strong demand from international investors and digital nomads seeking lifestyle-friendly, tax-efficient jurisdictions.

“The above is especially true when combined with a shortage of premium housing in key coastal and inland locations in and around Lisbon, the Algarve, and Alentejo, which is intensifying competition and pushing up prices.

“Relocating families are also significantly placing a premium on quality of life, safety, climate, healthcare, and international education—areas where the country continues to outperform many European peers.”

This property market growth is no surprise for Portugal Pathways and the Portugal Investment Owners Club, which supports affluent families relocating to the country. Founder and Chairman, Paul Stannard, commented on these findings:

“Portugal continues to stand out as a leading destination for high-net-worth individuals seeking to invest in Portugal’s luxury new homes market. The property market in Portugal has evolved over the last five years, with building standards significantly improving as developments offer families much more choice than just holiday villas for rent.

“There are so many affluent families and value creators coming to Portugal from the US and the UK and other countries who want properties for investment and family homes, but also very often as a base for them to work internationally.

“Portugal’s combination of economic stability, cultural richness, investor-friendly tax environment, and the ever-popular Golden Visa residency by investment programme makes it especially attractive.

“The revised Golden Visa framework still holds strong investor appeal, granting residency in Portugal and visa-free travel across the EU Schengen area in exchange for a €500,000 investment in regulated Portuguese alternative investment funds.

“Although direct real estate purchases no longer qualify for the Golden Visa residency by investment programme, investors can now channel funds into high-growth sectors such as clean energy, healthcare, tech, tourism, media, and hospitality.”

Learn more about Portugal’s Golden Visa residency-by-investment programme at Portugal Pathways' webinar, ‘Securing Portugal’s Golden Visa in 2025’.

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.

Collison provided insight into which hotspot locations in Portugal investors and relocators should look out for based on the updated report.

“Some of the areas of the Algarve that feature in our property hotspots list include Ferragudo, Carvoeiro, Vilamoura, Vale do Lobo, Quinta do Lago, Faro and Lagos, which are all seeing growing demand for real estate, particularly with investors and wealthy expats.

“Meanwhile, Lisbon's luxury districts, such as Avenida da Liberdade, Lapa, and Principe Real, command even higher prices, with new-build properties reaching up to €12,000 per square meter.

“The Silver Coast area north of Lisbon is still more affordable than the Algarve. Comporta, which lies southeast of Lisbon, is another real estate hotspot that made our list, along with nearby Alentejo locations Melides and Évora.”

For support researching luxury real estate in Portugal for any of these property hotspots, contact Portugal Pathways to arrange a meeting with one of their real estate specialists here.


About Portugal Pathways
Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and provides expert guidance through its professional supply chain network on luxury property, wealth management, and tax optimisation, including post-NHR tax regime planning, as well as private healthcare, IFICI tax incentive applications, money transfers and bespoke relocation solutions to enhance life and investments in Portugal.

About Portugal Investment Owners Club
The Portugal Investment Owners Club, or P Club for short, is a unique investor membership community designed for discerning individuals, families, and organisations committed to exploring and capitalising on life in Portugal and enjoying money-can't-buy experiences and exclusive events.

Amanda Collison
Property Market-Index
amanda.collison@propertymarket-index.com
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