Portugal’s property market regains momentum – Portugal Resident

Portugal’s housing market regained momentum in the second quarter of 2026, with home sales across the mainland rising 7% compared with the previous three months, according to new figures from property data company Confidencial Imobiliário.

Between April and June, 39,210 homes changed hands, reversing the 12.1% decline recorded in the first quarter, when 36,650 properties were sold. Even so, activity remains below the quarterly average of around 41,000 transactions seen at the end of 2025.

The recovery was recorded across the country’s main regional markets.

The Lisbon metropolitan area saw 11,790 home sales during the quarter, up 7% after an 8.4% fall in the opening months of the year. In the Porto metropolitan area, transactions increased by 7.9% to 6,500 homes, following a 10.3% decline in the first quarter.

The Algarve also returned to growth, with 2,875 homes sold between April and June, a 6.3% increase on the previous quarter after a sharp 16.6% contraction at the start of the year.

Ricardo Guimarães, director of Confidencial Imobiliário, said the recovery matched the improving sentiment reported by market professionals in the latest Portuguese Housing Market Survey.

“The second quarter marked a turning point after a period of weaker activity,” he said, adding that the stabilisation of Euribor rates and an easing of tensions surrounding the Persian Gulf conflict helped restore confidence and strengthen demand.

Despite the rebound in sales, house prices continued to climb.

Confidencial Imobiliário’s Residential Price Index recorded quarterly growth of 3.5% in the second quarter, slightly higher than the 3.2% increase registered in the first three months of the year.

On an annual basis, prices were 18.6% higher in June. While this remains well below the annual growth rates of more than 21% recorded at the market’s recent peak, it still reflects strong upward pressure on prices.

According to the company’s Residential Information System (SIR), the average selling price reached €325,342 per property, while homes took an average of five months to sell.

Source: Executive Digest