Housing affordability in Portugal presents a stark contrast depending on location. While major cities like Lisbon, Porto, and Faro boast high property values, often exceeding the reach of middle-class families, the country’s interior offers significantly more affordable options. In fact, some areas offer remarkable deals, with 100-square-metre houses priced below 30,000 euros in a dozen locations.
Recent reports highlight the rapid increase in Portuguese house prices. Data from the National Institute of Statistics (INE), released on January 30th, indicates that the average cost of homes reached 1,709 euros per square metre (euros/m²) in the year leading up to September 2024, a 3% increase compared to the preceding quarter.
However, these national averages are heavily influenced by inflated prices in just 53 municipalities. Outside of these hotspots, in the vast majority of Portugal – specifically, 250 out of 303 municipalities with sufficient data – finding a 100 m² house for under 170,000 euros is entirely achievable.
Discover the Cheapest Places to Buy a House in Portugal
To unearth the most budget-friendly properties, venture into the heart of Portugal. Pampilhosa da Serra, in the Coimbra district, takes the lead as the most affordable municipality, offering homes at an average price of 220 euros/m² during the same period. This translates to a 100 m² house costing around 22,000 euros.
Following closely is Mação, located in the Santarém district, with a median price of 243 euros/m². Vimioso (Bragança district) and Figueira de Castelo Rodrigo (Guarda) share the third spot, both offering housing at 250 euros/m². In these locations, a 100 m² home can be yours for 25,000 euros or less.
The top 10 most affordable municipalities in Portugal all feature average property values below 300 euros/m², meaning a 100 m² house comes in under the 30,000-euro mark. Two further municipalities, Fornos de Algodres and Santa Cruz da Graciosa, also fall below this threshold, according to INE data.
Where are the Most Expensive Places to Buy a House in Portugal
The contrast in Portuguese property prices becomes even more apparent when examining the 10 most expensive municipalities, all with average costs exceeding 2,750 euros/m². In these areas, a 100 m² home fetches a minimum of 275,000 euros.
Unsurprisingly, the priciest locations are concentrated in Lisbon, Porto, and Faro. The capital city itself tops the list with the highest median price (4,252 euros/m²), followed by Cascais (4,023 euros/m²) and Lagos (3,389 euros/m²).
The Algarve region dominates the top 10, claiming 6 spots in the ranking. The Lisbon district follows with 3 municipalities. Porto is the sole representative from the North, securing seventh place with a median house price of 2,940 euros/m².
