Portugal has the most overvalued housing in Europe, as reported in a European Commission document. The housing prices are overvalued by 35% in the country, according to the document.
“Prices are estimated to be overvalued by about 35% in Portugal, making it the only country where significant overvaluation is expected to increase in 2024,” the European Commission report states.
The same document reveals that “based on the latest available data, the Commission [European] estimates that the average overvaluation is most significant in Portugal.”
In statements to SIC Notícias, Paulo Caiado, president of the association of real estate professionals and companies, explains that “the price difference between the center of Lisbon and, for instance, 20 or 30 kilometers from the center, reveals prices to be less than a third of those practiced in the center of Lisbon”.
“Clearly, when everything is averaged together, it results in a very high average characterized by great heterogeneity,” he adds.
House Prices? More Than Double in 15 Years in Portugal
House prices more than doubled (141%) in Portugal between 2010 and 2025, rising 17.2% in the second quarter of the year, according to data released by Eurostat.
A bulletin released last week by the European statistical service indicates that house prices from 2010 to 2025 more than tripled in Hungary (277%) and Estonia (250%).
House prices more than doubled (141%) in Portugal between 2010 and 2025, rising 17.2% in the second quarter of the year, according to data released today by Eurostat.
Lusa | 13:35 – 03/10/2025
House prices doubled or more in ten bloc countries: Lithuania (202%), Latvia (162%), Czech Republic (155%), Portugal (141%), Bulgaria (133%), Austria (117%), Luxembourg (112%), Slovakia (105%), Poland (104%), and Croatia (102%), with Italy being the only country to show a decline (-1%).
Eurostat also reports that, conversely, house rents in the European Union (EU) increased by 3.2% in the second quarter compared to the same period last year and 0.7% compared to the first three months of the year.
Compared to 2010, house prices increased more than rents in 21 of the 26 EU countries for which data is available.
During the same period, rental prices went up in 26 EU countries, with the highest increases being observed in Estonia (218%), Lithuania (192%), Hungary (125%), and Ireland (117%), with Greece being the only country where rent prices decreased (-9%).
In 2024, Hungary (12.4%) was the country with the highest year-on-year rental increase, followed by Romania (11.1%) and Malta (8.9%), with Portugal ranking fifth (7.0%).
Between 2010 and the second quarter of 2025, house prices in the EU increased by 60.5% and rents by 28.8%.
