Portugal real estate market — prices, rental yield and trend
- Average price: $3,718 / m²
- Gross rental yield: 6.77%
- 12-month price change (USD): 14.1%
- Net rental yield: 6.09%
- Transaction cost: 11.2%
- Bubble-risk band: high
- Price basis: national average
Portugal is one of the faster-moving markets Glopra tracks: the average residential square metre now costs $3,718, +14.1% in dollar terms over the last twelve months. That makes it the 30th most expensive of the 83 markets in the set.
What a buyer pays in Portugal
The $3,718 figure is a national average across all residential property types, which flattens a wide spread — the capital typically runs far above it and small towns far below. Buying costs — transfer tax or stamp duty, notary, registration and agency — come to about 11.2% of the price here. On a 100 m² apartment at the average price that is roughly $41,642 on top of the $371,800 purchase price. That is close to the 10.2% median across the set. Inside Portugal we track 2 local markets separately: Lisbon at $7,218 (94.1% above the national figure) down to Porto at $4,957.
What it earns
A square metre lets for about $21.0 a month. Against a purchase price of $3,718 per square metre that is 6.8% gross, before tax. Both figures come from the same source and the same period, so you can check the arithmetic yourself. It ranks 22nd of 88 markets by gross yield. Rental income is taxed at 10–25% — the rate is not a single number here. That is the difference between 5.1% and 6.1% net on the same property. The 6.1% net figure we publish uses 10%.
How the tax works. 10% under the reduced rate for long-term residential lets (EBF art. 45-C, Decree-Law 97/2026, in force from 1 January 2026 to the end of 2029), which applies only while the rent is at or below €2,300 a month; above that threshold the standard 25% non-resident rate applies (CIRS art. 72). There is no flat expense allowance, so the statutory rate is the effective rate. The 10–25% band reflects that threshold, and the reduced rate has not yet been confirmed for non-residents by a tax-authority circular. Source: diariodarepublica.pt.
Where the price sits against its own history
Prices are +69.5% over five years and +185.4% over ten in local terms. Today’s level sits 45.4% above the country’s own long-run trend. A gap that size does not have to close, but it is the number to watch. Glopra’s bubble-risk score for Portugal is 84 out of 100 — high risk. Only one of the 58 markets we score reads higher. It combines the deviation from trend, price-to-income and the pace of recent growth — a warning light, not a forecast.
Portugal house price index, 2016–2026 (2016 = 100)
| Year | Index |
|---|---|
| 2016 | 100 |
| 2017 | 109.2 |
| 2018 | 120.5 |
| 2019 | 132.5 |
| 2020 | 144.1 |
| 2021 | 157.6 |
| 2022 | 177.5 |
| 2023 | 192.1 |
| 2024 | 209.5 |
| 2025 | 246.3 |
| 2026 | 271.6 |
Rebased to 100 in 2016, the index stands at 271.6 in 2026. The series is in local currency, and the twelve-month numbers above show how much of that a dollar buyer actually keeps.
Who can buy in Portugal
Freehold, no restrictions. That is the rule a foreign buyer meets first, not legal advice — check the current position locally before you commit.
How this figure is built
The price figure for Portugal is built from asking prices from listings. It was last refreshed on 2026-09-28. We rate our confidence in this market’s data low — treat the figures as indicative and check them before acting. We recompute every market the same way; a figure that fails our checks is suppressed, not guessed.
Sources: INE Estatisticas de Precos da Habitacao 2026 Q1 via idealista/news · idealista.pt · rtp.pt · ec.europa.eu · globalpropertyguide.com. Snapshot: 2026-09-28.
Latest Portugal market analysis
- Portugal's Median New-Lease Rent Reached 10.17 Euros per Square Metre, Up 10.2% — 2026-09-29
- Portugal's Median Bank Valuation of Housing Hits a Record 2,254 Euros per Square Metre — 2026-09-27
- Portuguese House Prices Rose 16.5% in the Second Quarter as Sales Volumes Kept Falling — 2026-09-24
- Portugal Licensed Fewer Buildings but 10.8% More Homes in Q2 2026 — 2026-09-13
- Lisbon Prime Rents Rose 7.6% in the First Half of 2026, Behind Only Cape Town — 2026-09-09
- Portugal Completed 31,700 Public Homes Under Its Recovery Plan, Beating a 26,000 Target — 2026-09-03
- Portuguese Asking Prices Held at €3,207 per Square Metre in August as Faro Ran 18.3% Higher — 2026-09-02
- Portugal's New Rental Regimes Take Effect: Tax-Free Rent at 80% of the Local Median — 2026-09-02
- Portuguese Bank Valuations Rose 16.6% in June as Housing Licences Fell 6.9% — 2026-08-31
- Demand for Rented Rooms in Portugal Rose 27% While Supply Fell 11% — 2026-08-25
- Portugal's Land Law Has Produced 27 Rezoning Requests in 19 Months — 2026-08-23
- Porto's Short-Term Rental Cap Bites: One Historic Parish Sits at 39.3% Against a 15% Ceiling — 2026-08-23
Related markets: Porto · Lisbon · Braga · Madeira · Setubal (Comporta) · Aveiro