The prices of houses recorded a year-on-year increase of 17.7% in June, marking the largest rise since 2022, according to data released on Wednesday by Confidencial Imobiliário.
“Since the end of 2022, house sale prices in mainland Portugal had not risen at such a high rate as recorded in June, when the year-on-year change rate reached 17.7%,” stated a communication sent to Notícias ao Minuto.
This “reflects the acceleration of monthly price increases experienced throughout the year, which resulted in an increase of the year-on-year valuation from 11.0% at the end of 2024 to the current levels,” revealed Confidencial Imobiliário within the framework of the Residential Prices Index.
Data also showed that in June, the monthly price increase was 1.8%, restoring the chain valuation trend of 2025 around 2.0%.
“It should be noted that May was an exception to this level of valuation, registering a residual monthly variation of 0.2%, which ended up being an isolated moment. In quarterly terms, prices rose by 3.4% in the 2nd quarter,” was noted in the statement.
Furthermore, based on projections from the SIR-Sistema de Informação Residencial database, “Confidencial Imobiliário estimates a volume of 40,450 housing transactions in mainland Portugal in the 2nd quarter of this year, in line with the patterns of recent quarters.”
“The average selling price of housing during this period reached €2,778/m2, positioning at €3,771/m2 for new units and €2,559/m2 for used units,” the statement added.
Real estate investment in Portugal surged 78% year-on-year in the first half of this year to €1.23 billion, according to data from the real estate consultancy CBRE.
In a statement, the company said, “Commercial real estate investment in Portugal continues to show clear signs of growth in 2025.”
According to CBRE, this increase is attributed to the fact that despite 2024 witnessing a strong recovery in investment, “after a year marked by the slowdown caused by the interest rate shock, the first half still presented relatively low investment levels compared to the second half.”
On the other hand, “the first half of 2025 registered a significant investment volume, driven by a set of high-value transactions in the retail and hotel sectors— which, for three years now, have been establishing themselves as the main drivers of investment in Portugal,” highlighted the entity in the same note.
The group also ensured that it “closely and continuously monitors the dynamics of the investment market in Portugal.”
CBRE’s forecast at the beginning of 2025 projected “a total investment volume in Portugal around €2.5 billion, which would represent a growth of about 8% compared to 2024.”
However, “based on the strong performance recorded in the first half and the projects currently in commercialization, we anticipate that, with a high probability, the volume transacted in 2025 will exceed the initial projection, resulting in growth exceeding the initially estimated,” it indicated.
According to CBRE data, Portugal is a country “especially open to foreign investment and commercial real estate is no exception,” with over three-quarters of investment in Portugal in the last decade being “carried out by international investors.”
As such, after conducting a series of surveys, it was found that “optimism in the European real estate investment markets has returned, as more than 90% of European investors expect to maintain or strengthen their acquisition activity this year.”
Additionally, according to CBRE, “Portugal is, for the first time since this study has been conducted, among the top destinations for European investment.”
“The first half of 2025 confirms the sustained attractiveness of the commercial real estate market in Portugal. Investors continue to bet on segments with solid fundamentals, such as retail and hospitality, and benefit from more favorable financing conditions. Greater national liquidity and the European highlight reinforce confidence in an even more dynamic second half,” stated Francisco Horta e Costa, Managing Director of CBRE Portugal, in a written statement sent to Lusa.
