Portugal Residential Market Dynamics, Q1 2026

Portugal's housing prices soared, with the price index reaching 280 by Q4 2025, followed by a substantial 22.4% annual surge driven by intense buyer competition along with persistent shortage of available properties.

Portugal shows a 5.5% yearly increase in completed units through 2025, reflecting a resilient and healthy construction sector, with quarterly growth accelerating to 3.6% in Q4 2025.

New building permits demonstrate a 21% YoY increase, showcasing continued developer confidence. Portugal's 'Construir Portugal' program, which slashes construction VAT to 6%, is expected to further accelerate growth in the BTR sector, while boosting affordable housing supply and lowering development costs.