Portugal Residential Market Dynamics, Q2 2026

Portugal’s residential prices maintained an upward trajectory (+14% YoY) in Q2 2026, despite a 1% QoQ moderation, driven by persistent supply constraints; while H1 transaction volumes contracted 7% YoY, masking a divergence between used (-10%) and new-builds (+14%).

Construction completions rose 4% YoY in Q1 2026, while licensing activity recovered to 3% YoY growth YTD through May after an initial quarterly contraction, reflecting cautious developer sentiment amid elevated construction and land costs.

Portugal launched the 'Construir Portugal' housing package, reducing construction VAT to 6% for qualifying projects to lower development costs and support supply expansion alongside ongoing planning simplification efforts.