House prices in Spain are forecast to fall in 2024, after increasing by *** percent in 2023. Nevertheless, prices are expected to pick up in 2025, with an increase of ***********. The Portuguese housing market, on the other hand, grew by *** percent in 2023, but was forecast to contract in the next two years.

In Portugal, the average price per square meter of housing for rent was 15.5 euros in December 2023. The Lisbon region registered the highest value at over 18 euros per month. In April 2024, average prices increased in all regions, amounting to a national average of more than 16 euros per square meter. By July 2025, the national average was 16.7 euros, while reaching 19.6 euros in the Lisbon region.

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2024. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 116.2 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.

Companies operating in the third-party real estate industry have had to navigate numerous economic headwinds in recent years, notably rising interest rates, spiralling inflation and muted economic growth. Revenue is projected to sink at a compound annual rate of 0.6% over the five years through 2025, including an estimated jump of 1.2% in 2025 to €207.6 billion, while the average industry profit margin is forecast to reach 35.1%. Amid spiralling inflation, central banks across Europe ratcheted up interest rates, resulting in borrowing costs skyrocketing over the two years through 2023. In residential markets, elevated mortgage rates combined with tightening credit conditions eventually ate into demand, inciting a drop in house prices. Rental markets performed well when house prices were elevated (2021-2023), being the cheaper alternative for cash-strapped buyers. However, even lessors felt the pinch of rising mortgage rates, forcing them to hoist rent prices to cover costs and pricing out potential buyers. This led to a slowdown in rental markets in 2023, weighing on revenue growth. However, this has started to turn around in 2025 as interest rates have been falling across Europe in the two years through 2025, reducing borrowing costs for buyers and boosting property transactions. This has helped revenue to rebound slightly in 2025 as estate agents earn commission from property transactions. Revenue is forecast to swell at a compound annual rate of 3.7% over the five years through 2030 to €249.5 billion. Housing prices are recovering in 2025 as fixed-rate mortgages begin to drop and economic uncertainty subsides, aiding revenue growth in the short term. Over the coming years, PropTech—technology-driven innovations designed to improve and streamline the real estate industry—will force estate agents to adapt, shaking up the traditional real estate sector. A notable application of PropTech is the use of AI and data analytics to predict a home’s future value and speed up the process of retrofitting properties to become more sustainable.

Portugal PT: Standardised Price-Income Ratio: sa data was reported at 122.770 Ratio in Dec 2024. This records an increase from the previous number of 122.418 Ratio for Sep 2024. Portugal PT: Standardised Price-Income Ratio: sa data is updated quarterly, averaging 102.113 Ratio from Mar 1995 (Median) to Dec 2024, with 120 observations. The data reached an all-time high of 123.641 Ratio in Dec 2023 and a record low of 76.776 Ratio in Mar 2013. Portugal PT: Standardised Price-Income Ratio: sa data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Portugal – Table PT.OECD.AHPI: House Price Index: Seasonally Adjusted: OECD Member: Quarterly. Nominal house prices divided by nominal disposable income per head. Net household disposable income is used. The population data come from the OECD national accounts database. The long-term average is calculated over the whole period available when the indicator begins after 1980 or after 1980 if the indicator is longer. This value is used as a reference value. The ratio is calculated by dividing the indicator source on this long-term average, and indexed to a reference value equal to 100.

Over the observed period, the value of dwelling transactions in Portugal fluctuated. The lowest value was recorded in the second quarter of 2020 at four billion euros. In the fourth quarter of 2024, the price of housing was the highest, at over 10.17 billion euros, having decreased to 9.61 billion euros during the first quarter of 2025.

Graph and download economic data for Consumer Price Index: OECD Groups: Services Less Housing: Housing Excluding Imputed Rentals for Housing for Portugal (PRTCPGRLH02GPM) from Feb 1991 to Dec 2023 about imputed, Portugal, rent, CPI, services, price index, indexes, and price.

During the observed period, the data Portugal's new housing construction cost index reached nearly 123 points by January 2025, reflecting a significant increase from the base year of 2021. This overall rise in construction costs includes increases in the indexes of both materials and, especially, labor cost in the construction sector. Trends in residential construction The proportion of one-dwelling residential construction in Portugal has grown steadily since 2017, accounting for 66 percent of new builds in 2023. This trend coincides with a decrease in mostly non-residential construction, which fell to its lowest share of approximately 23 percent in the same year. The northern region of Portugal has emerged as a hotspot for new housing, completing over 10,100 new dwellings for family housing in 2023, while Greater Lisbon saw a preference for three-bedroom dwellings in new constructions. Housing market dynamics Despite the growing construction costs, Portugal's residential property sector is performing confidently, which is reflected in rising residential construction permits. The number of permits issued for residential property construction, which had declined sharply from nearly 66,000 in 2007 to less than 25,000 in 2020, rebounded to almost 32,000 in 2023, an uptick that does not match Portugal’s severe housing problems.

Graph and download economic data for Consumer Price Index: OECD Groups: Housing: Housing Excluding Imputed Rentals for Housing for Portugal (PRTCPGRHO02GPQ) from Q2 1991 to Q4 2023 about imputed, Portugal, rent, CPI, price index, indexes, and price.

After a long period of steady increase in real estate prices in Spain, the market was hit by the global financial crisis of 2007, resulting in the burst of the Spanish property bubble. House prices have since picked up and in 2023, the average square meter price reached 2,809 euros - just slightly below 2008 levels. Though prices have risen across the whole country, some regions, such as the Balearic Islands, Catalonia, Madrid, and Andalusia, experienced faster growth than others. Additionally, the gap between newly built and existing home prices has widened. Spain’s real estate market behind others The property market has made great progress, but it is still far off the rest of its European counterparts, and it is positioned, in fact, at the bottom of the European list of the EMF’s house price index, which is led by Czechia and Portugal. Supply is a major factor influencing the price development. Many European countries suffer housing shortages due to sluggish construction activity, and Spain is no exception. In 2022, ranked among the countries with the lowest number of residential construction starts per 1,000 citizens in Europe. Buying vs renting As happens with many other countries, the affordability of buying a home and renting will differ considerably dependent on the area. In 2022, the average Spanish citizen needed between five and 18 years to purchase an average priced property in their region with their full salary, with Murcia and La Rioja being the most affordable regions. The house price to rent index shows that house price growth has been much faster than rental growth. That is good news for homeowners whose homes appreciate over time, but an issue for renters who are yet to purchase a property.

Portugal - Severe housing deprivation rate: Tenant, rent at market price was 13.20% in December of 2023, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Portugal - Severe housing deprivation rate: Tenant, rent at market price - last updated from the EUROSTAT on October of 2025. Historically, Portugal - Severe housing deprivation rate: Tenant, rent at market price reached a record high of 18.50% in December of 2005 and a record low of 6.50% in December of 2017.

Graph and download economic data for Consumer Price Index: Housing, Water, Electricity, Gas and Other Fuels (COICOP 04): Actual Rentals for Housing: Total for Portugal (PRTCP040100GPM) from Jan 1960 to Dec 2023 about Portugal, water, fuels, electricity, rent, gas, CPI, price index, indexes, and price.

Graph and download economic data for Consumer Price Index: Housing, Water, Electricity, Gas and Other Fuels (COICOP 04): Total for Portugal (PRTCP040000IXNBQ) from Q1 1960 to Q4 2023 about Portugal, water, fuels, electricity, gas, CPI, price index, indexes, and price.

The price of residential real estate increased in most countries in the Europ in the first quarter of 2025. Prices rose the most in Turkey, Portugal, and Bulgaria. Conversely, Finland was the only country where house prices declined, falling by *** percent over the same quarter in 2024. According to the aggregate house price index for the EU, prices mostly stabilized after a brief drop in the second half of 2022.

Portugal - Housing cost overburden rate: Two adults was 5.60% in December of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Portugal - Housing cost overburden rate: Two adults - last updated from the EUROSTAT on October of 2025. Historically, Portugal - Housing cost overburden rate: Two adults reached a record high of 7.90% in December of 2014 and a record low of 3.50% in December of 2023.

Graph and download economic data for Consumer Price Index: Harmonized Prices: Housing, Water, Electricity, Gas and Other Fuels (COICOP 04): Maintenance and Repairs of the Dwellings for Portugal (PRTCPHP0403GPM) from Feb 1996 to Nov 2023 about repair, maintenance, Portugal, water, fuels, electricity, and gas.

Hungary, Czechia, Poland, and Portugal were the countries in Europe where house prices increased the most between 2015 and 2024. The EMF house price index for all four countries measured more than *** index points, indicating that home prices more than doubled since 2015 — the base year. Property prices are tightly connected with the supply of new homes. France, Poland, and Denmark are some of the countries with the most dwellings completed per 1,000 citizens in Europe.

Bearing housing with ball bearing imports into Portugal rose slightly to 172 tons in 2023, growing by 5% on the year before.

Portugal PT: Composition & Asset Quality: Loans & Advances at Amortised Cost: ow Commercial Real Estate data was reported at 14.400 EUR bn in Dec 2024. This records a decrease from the previous number of 14.500 EUR bn for Sep 2024. Portugal PT: Composition & Asset Quality: Loans & Advances at Amortised Cost: ow Commercial Real Estate data is updated quarterly, averaging 14.950 EUR bn from Sep 2019 (Median) to Dec 2024, with 22 observations. The data reached an all-time high of 22.700 EUR bn in Jun 2020 and a record low of 14.300 EUR bn in Dec 2023. Portugal PT: Composition & Asset Quality: Loans & Advances at Amortised Cost: ow Commercial Real Estate data remains active status in CEIC and is reported by European Banking Authority. The data is categorized under Global Database’s Portugal – Table PT.EBA: Non Performing Loans Ratio: Loans and Advances.

Graph and download economic data for Consumer Price Index: Housing, Water, Electricity, Gas and Other Fuels (COICOP 04): Maintenance and Repairs of the Dwellings: Total for Portugal (PRTCP040300GPQ) from Q2 1991 to Q4 2023 about repair, maintenance, Portugal, water, fuels, electricity, gas, CPI, price index, indexes, and price.