Portugal to Lead Europe in Real Estate Growth in 2025

Portugal is on track to record the largest increase in real estate transactions across Europe in 2025, according to a new study by the ERA Group.

The ERA Europe Market Survey 2024/2025, which analysed 19 European markets, highlights Portugal as the country with the most dynamic growth outlook this year. Transactions are expected to rise by more than 10% in 2025, driven by stronger market activity and more favourable financing conditions.

Data from Portugal’s National Statistics Institute (INE) already show strong momentum. In the very first quarter of 2024, property transactions rose 24.9% compared to the same period last year. For the full year, Portugal recorded a 14.5% increase in transactions, ranking fourth in Europe. Only Turkey (+20%), the Czech Republic (+43%), and Luxembourg (+48%) outpaced Portugal in 2024. On the other end, France, Austria, and Ireland posted the steepest declines, largely due to persistent housing supply shortages.

Despite this surge in activity, property prices in Portugal remain well below the European average. In 2024, the cost per square meter stood at €1,777, compared to the European benchmark of €3,558/m². However, at the top of the list, Switzerland remains Europe’s priciest market at €11,400/m², followed by Luxembourg (€8,488/m²), the Netherlands (€4,445/m²), Austria (€3,560/m²), and France (€3,217/m²).

Strong transaction surge and competitive prices position Portugal as one of the continent’s most attractive property markets.

In Portugal’s capital, however, prices are significantly higher than the national average. Lisbon currently averages €4,340/m², placing it in line with major European cities such as Prague (€4,555/m²) and Vienna (€4,184/m²). Lisbon’s housing market is notably more expensive than Rome (€3,200/m²), Madrid (€3,805/m²), or Brussels (€3,337/m²).

At the very top end of the European scale, Bern (€15,000/m²), Luxembourg City (€12,462/m²), and Paris (€9,557/m²) remain the most expensive urban markets in the EU.

With demand on the rise and financing conditions improving, Portugal is positioned as one of the most attractive property markets in Europe. While Lisbon continues to experience price pressures comparable to other capitals, the country as a whole remains relatively affordable, especially when compared to Western and Central European averages.

As 2025 unfolds, investors, homeowners, and international buyers alike will be watching Portugal’s market closely, both for its high growth potential and its competitive pricing advantage.

Disclaimer: The views expressed above are based on industry reports and related news stories and are for informational purposes only . SSIL does not guarantee the accuracy, legality, completeness, reliability of the information and or for that of subsequent links and shall not be held responsible for any action taken based on the published information.