Portugal Property Sales Slow as Prices Reach New Highs

What happened

Portugal's residential property market is showing signs of slower activity, while prices remain elevated.

The latest housing data show transaction volumes declining, while the average purchase price reached €266,475. Buyers resident outside Portugal purchased 1,890 homes in Q2 2026, 10.3% fewer than a year earlier. However, the average price paid by non-resident buyers increased to €421,166.

What this means for international buyers

A fall in the number of transactions should not be confused with a fall in property prices.

A quieter market can sometimes create more room for negotiation, particularly where a property has been on the market for some time or the seller is motivated. But national figures do not tell us whether a particular property in Lisbon, Cascais or elsewhere in Portugal represents good value.

For buyers, the important question remains the same: how does the asking price compare with the local market, comparable properties and the characteristics of the property itself?

The figures also show that international buyers continue to operate at a considerably higher average purchase price than the market overall. That makes careful assessment of value particularly important before making an offer.

My view

For international buyers, I would not interpret these figures as a reason either to rush into the market or to wait for an assumed fall in prices.

They are a reminder that Portugal is not one property market. Conditions can differ considerably between locations, property types and price ranges. A well-priced property in a sought-after area can behave very differently from the national market.

The objective should be to understand the particular market you're buying into and negotiate each property on its own merits.