Extra room can add €100,000 onto property prices

Gaining an extra bedroom can represent an additional investment of up to €100,000 for those looking to buy a home in Portugal.

Data from Imovirtual—analysing average apartment prices in the primary market over the last three months and comparing them to the same period the previous year—shows that moving from a three-bedroom (T3) to a four-bedroom (T4) unit currently entails an extra cost of €100,000, the largest jump across all property types.

Meanwhile, upgrading from a one-bedroom (T1) to a two-bedroom (T2) unit requires an additional investment of €84,999, whereas switching from a T2 to a T3 costs, on average, an extra €70,001.

The analysis further shows that the cost of upgrading from a one-bedroom (T1) to a two-bedroom (T2) property has risen by approximately €15,000 compared to the same period last year, while the price gap between a T2 and a three-bedroom (T3) unit has narrowed by the same amount. Despite this adjustment, gaining extra space remains a significant financial undertaking for homebuyers.

Among all property types, the T2 segment recorded the highest year-on-year price appreciation. The average price rose from €295,000 to €324,999—an increase of 10.2%. Trends in other segments were more moderate: T1 prices grew by 6.7% to €240,000; T3 prices rose by 3.9% to €395,000; T4 prices increased by 3.1% to €495,000; and T5+ prices grew by 5.3% to reach €790,000.

“More than just a matter of square footage, the data shows that each additional bedroom now represents a significant financial undertaking for prospective homebuyers.

The difference between property types has become a deciding factor in the purchase decision, forcing many families to strike a balance between space, location, and their available budget.

At the same time, the strong growth in two-bedroom units confirms that this remains the layout best suited to the needs of a large number of buyers. In a context where family needs evolve over a lifetime, this additional cost can be the deciding factor when choosing between staying in the same type of property or seeking alternatives in other locations,” says Sylvia Bozzo, Marketing Manager at Imovirtual.

Lisbon continues to lead

At a regional level, Lisbon continues to show the highest average price at €560,250, despite a 6.6% annual correction. Conversely, the Algarve stands out as the market with the strongest growth among the major districts, appreciating by 17.0% to reach €510,000, while Madeira remains at €500,000.

Porto shows a slight decline of 1.7%, settling at €379,900, whereas Setúbal grows by 2.8%, reaching €365,000. Among the markets experiencing the most appreciation, Beja stands out with a 35.1% rise, followed by Viseu with 29.3% growth, reinforcing the increasing dynamism of various markets outside the main urban centres.

These differences become even more evident when analysing each property type individually. In Lisbon, a 5-bedroom-plus (T5+) property reaches an average price of €1,100,000, while in the Algarve and Porto, the same type stands at €860,000. For 4-bedroom (T4) properties, Lisbon also leads with €615,000, followed by the Algarve (€535,000) and Porto (€499,900).

For smaller apartments, the differences between regions are less pronounced. While a two-bedroom apartment has an average price of €390,000 in Lisbon, the figure stands at €285,000 in Porto, €245,000 in Aveiro, €230,000 in Coimbra, and €210,000 in Braga.

Beyond merely measuring price differences between property types, data from Imovirtual reveals the actual cost of gaining more space in the Portuguese real estate market.

At a time when many families are looking to adapt their homes to their needs, each additional bedroom represents an increasingly significant investment, making budget management one of the most critical decisions in the buying process.

Source and Image: Imovirtual