The pulse of real estate, market insights & living in Portugal
European Commission Unveils Strategic Legal Measures To Tackle Housing Shortage, Focusing on Regulating Short-Term Rentals in Popular Cities
The European Commission announced a new legal framework to regulate short-term rentals across member states in order to boost the supply of affordable, long-term housing and relieve pressure on urban housing markets.
Price Explosion for Trump “Refugees”
Portugal's real estate market is experiencing significant growth, driven by an influx of American expatriates seeking a more stable environment. From January to July 2025, over 1.3 million Americans visited Portugal, surpassing traditional European visitors. The number of U.S. citizens residing in Portugal has more than doubled since 2017, reaching nearly 21,000. This trend is contributing to a vibrant housing market, with retirees and professionals finding Portugal an attractive destination for relocation.
Portugal crowned the world’s best retirement destination
Portugal has been recognized as the world's top retirement destination for 2025 by Global Citizen Solutions. The country scored 92.61 points, excelling in quality of life, safety, and expat integration. Portugal offers a mild climate, affordable living, accessible healthcare, and established residency pathways, making it an attractive option for retirees from the UK, US, and beyond.
Historic Rise in Property Prices
Property prices in Portugal rose by 18.7% last year, reaching an all-time high. The number of homes sold between January and March 2025 increased by 24.9% compared to the same period in 2024, with over 40,000 properties sold. Lower mortgage interest rates, new support measures for young buyers, and strong rental demand are driving growth in the housing market. Average prices have now reached a record €1,951 per square metre.
Why expats are choosing Porto and Northern Portugal as their next destination
Porto is now recognised as an emerging centre for digital business and innovation. In 2025, fDi Intelligence named Porto the Best European City for Foreign Direct Investment (FDI) Attraction, a title driven by the city’s growing role as a hub for scientists, technologists, engineers, and entrepreneurs.
How Are House Rents Evolving in 2025?
In recent years, renting a house has been a challenge due to the constant increase in rents. However, 2025 has started with signs of change. Although prices continue to rise, the growth rate is slowing down, making the market more predictable for those looking to rent a home. According to the latest data, rents increased by 5.9% in February 2025, a figure lower than the 6.5% recorded in January. This means that, despite the increase, the trend of slowdown persists.