Portugal's residential market delivered a considerable price growth of 13.1% YoY through September, driven by robust demand and persistent housing shortages, with the house price index reaching approximately 260 in Q2 2025.

Despite a 4% quarterly decline in completed family housing units, Portugal recorded approximately 5% YoY growth through June, demonstrating robust underlying development momentum.

The outlook is positive, with a 23% YoY surge in new housing licenses signaling rising developer confidence, which is expected to be further spurred by a proposed VAT reduction to 6% on construction and renovation works.