As we dive into Portuguese real estate market in 2025, we note several key trends that can shape the industry's trajectory.
1. Slower Price Increases
The biggest issue with the Portuguese real estate market is the low supply. Some clients are shocked at the prices in Portugal, which are starting to rival other sought-after destinations. A client shared with me that to get a house similar to the one he has in Belgium, he would have to pay nearly 5 times more than what he's currently paying. This ultimately led him to chose another destination.
This is not an issue for every foreigner, as some are used to higher costs of living, but for most, and more especially Portuguese people, it is a sore.
The government’s promises of affordable housing can’t keep up with demand, and while many blame foreign buyers for this, the lack of housing stock is the real problem.
Below is data on the number of new constructions carried out in Portugal from 2011 to 2021, specifically highlighting the number of new dwellings built per 1,000 inhabitants. As shown, Portugal performed well below expectations.
However, since 2021, this trend has finally begun to reverse. In today’s environment, staying informed about emerging hotspots and construction trends is crucial, making knowledge and preparation key.
House prices are expected to keep rising, but at a slower pace than in previous years. The slowdown in sales activity may be welcomed by giving buyers and sellers a bit more breathing room to weigh their options and make informed decisions.
2. New Investment Hotspots
While Lisbon and Porto remain the strongest markets, there are still some safe-haven suburbs that have more affordable housing, while still being no more than 20 minutes away from a beach, a secluded location or the center of a city.
These places include Bicesse, Alcoitão, Alcabideche, Alfragide, Dafundo, Porto Salvo, São Domingos de Rana, Sacavém, and Marvila just to name a few that come to mind, but there are many, many more locations around Cascais and Lisbon which are becoming increasingly attractive for investment.
These areas, driven by growing development projects and affordability, are ideal for those looking to explore opportunities beyond the traditional central urban hubs.
3. Portuguese building quality
We are a team of architects and engineers who live and breathe real estate. So we have a particular interest for the quality of the buildings.
Portugal’s older cement and brick houses, particularly those built in the 1970s and 1980s, were generally solid and robust, thanks to their reinforced concrete and brick structures. However, these homes often lacked proper thermal and acoustic insulation due to the absence of strict regulations at the time. Common problems included humidity and water infiltration, both of which can lead to mold and mildew, and occasional design or construction flaws resulting from limited oversight. Numerous homeowners report these issues on social media, illustrating how widespread they are.
Despite these challenges, many of these houses only require thoughtful renovations to restore their charm and functionality.
However, the rise of quick fix-and-flip renovations has introduced a new problem. Many of these renovations are rushed and driven solely by profit, with little care for quality or long-term value. Instead of addressing structural or underlying issues, the focus is often on cosmetic fixes to make the property look appealing at first glance. This can mean hidden problems that only come to light a couple of months after the sale, leaving buyers with unexpected costs and headaches. Buyers need to be cautious, and that’s where we come in. Our expert guidance ensures the home you’re buying isn’t just a quick flip hiding hidden problems.
With regard to modern construction, we have to admit that it has improved drastically, especially with respect to thermal and acoustic insulation, but new construction is not without its flaws. Through countless home inspections, we’ve been surprised at the oversight still present in many new builds. While standards have improved, the reality is that the quality of labor has declined significantly. Many homes lack the continuous supervision they need during construction, resulting in mistakes and shortcuts that could have been avoided. Proper oversight is essential to ensure the quality and durability of modern homes.
The bottom line is: Always ask for a home inspection.
4. Sustainability Is No Longer Optional
Sustainability has become a necessity. Energy-efficient systems and materials have become essential features in homes, not just for environmental reasons but also for long-term cost savings. Properties with sustainable upgrades such as solar panels, high-performance insulation, and water-saving fixtures, are seeing increased demand, as buyers recognize their value in terms of both comfort and financial returns.
At the same time, shifts in buyer preferences driven largely by remote work, are redefining what people seek in a home. Flexible layouts and dedicated home office spaces are becoming highly desirable. Locations like Cascais, with its blend of fantastic beaches and top-tier schools, have seen a surge in interest as people look to balance work, leisure, and a high-quality lifestyle.
For homeowners and investors, integrating mechanically controlled ventilation systems (VMC) and heat pumps not only improves indoor air quality, tackling issues like mold and mildew in older Portuguese homes but also aligns with the growing demand for modern, adaptable living spaces. These upgrades make homes healthier, more energy-efficient, and more attractive to buyers looking for a future-forward investment, or renters seeking top-notch comfort.
By prioritizing sustainability and smart design, homeowners can enhance both the livability and long-term value of their property, while catering to the evolving needs of today’s market. With net annual returns of 4 to 8% in sought-after areas, the combination of sustainability and modern living trends presents a compelling opportunity for those looking to buy, sell, or invest in real estate.
5. Why are we writing this and what is it that we do?
Real estate in Portugal should be transparent, efficient, and built on trust. Whether buying, selling, or investing, every step should be clear, seamless, and optimized for the best outcome.
For the buyer, a property inspection ensures that there are no hidden issues. A thorough title check avoids legal surprises. A well-structured future renovation plan maximizes value. Local knowledge of a location’s past and future development is essential as every detail matters when making one of life’s biggest financial decisions.
For the seller, a well-prepared property commands trust and value. A documented architectural and engineering assessment adds credibility, helping buyers see the full potential of the home. Strategic improvements, whether minor upgrades or a complete renovation, can enhance market appeal and maximize returns. Our 3D architectural projects allow buyers to visualize possibilities, making properties more attractive while maintaining a realistic approach. Rather than speculative pricing that leaves homes sitting on the market, we focus on a well-structured sales strategy backed by expertise. Every step is handled efficiently, reducing unnecessary costs and ensuring a smooth, optimized sale.
We operate in Lisbon, Cascais, Ericeira, and beyond. Whether it's a historic street, a modern apartment, or a development opportunity, deep local knowledge ensures that each decision is backed by insight and expertise, not guesswork.
When every choice is informed and every risk is mitigated, real estate becomes an opportunity, not a gamble.
