News

Which is the most “competitive” municipality in Portugal?

According to the Mais Liberdade Institute's "Municipal Competitiveness Ranking 2025," Lisbon is the most competitive municipality in Portugal, followed by Oeiras and Porto. The study evaluated 186 municipalities with over 10,000 inhabitants across ten dimensions, including economic performance, income levels, and business success. This ranking highlights Lisbon's leading role in fostering a dynamic and prosperous environment for residents and businesses alike.

Property rental prices rise by 4%

In the year ending in September 2025, rental prices in Portugal increased by 4.1%, marking an acceleration from the previous month's 3.3% growth. The median cost of renting a home reached €16.9 per square meter. Cities such as Viana do Castelo, Bragança, and Viseu saw the most significant annual increases, with rates rising by 23.8%, 19.8%, and 16.5%, respectively. Lisbon remained the most expensive city to rent a home, with an average cost of €22.5 per square meter. In contrast, Bragança, Castelo Branco, and Viseu were among the most affordable cities for renting, with costs of €7.1, €7.3, and €7.9 per square meter, respectively.

Cheaper mortgage loans until 2028

According to the Public Finance Council, the 3-month Euribor rate is projected to decrease to 1.9% between 2026 and 2027, offering potential relief for families with mortgage loans indexed to this rate. This forecast suggests a favorable environment for borrowers in the coming years.

Tourism expected to reach 22% of GDP in Portugal

According to the World Travel & Tourism Council (WTTC), Portugal's tourism sector is projected to contribute €62.7 billion to the national economy in 2025, representing 21.5% of GDP. This marks a 37.9% increase compared to pre-pandemic levels in 2019. The sector is also expected to support 1.2 million jobs, a 17.3% rise from 2019 figures. Looking ahead, the WTTC forecasts that by 2035, tourism will account for 22.6% of GDP, with revenues reaching €74.6 billion and employment expanding to 1.4 million, highlighting the sector's significant and sustained impact on Portugal's economy.

Record-breaking property prices

Portugal's real estate market continues to thrive, with bank appraisals reaching a new all-time high of €1,965 per square meter in August 2025, marking the 21st consecutive month of increases. This upward trend reflects sustained demand and investor confidence across the country. Notably, Greater Lisbon leads with appraisals at €2,991/m², while the Algarve follows at €2,681/m². These figures underscore Portugal's robust property market, attracting both domestic and international interest.

Property below €700 per m²: Portugal’s cheapest places to buy in 2025

ortugal offers affordable real estate options, with 19 municipalities boasting average property prices under €700 per m². Sabugal (Guarda) leads at €495/m², followed by Pampilhosa da Serra (Coimbra) at €512/m² and Góis (Coimbra) at €513/m². These areas provide excellent value for buyers seeking budget-friendly properties in tranquil, rural settings.