Portugal sees fourth greatest house price hikes in the world!

Portugal recorded a 16.5% annual increase in housing prices, standing out as one of the most dynamic markets globally.

Lisbon continues to assert itself in the prime residential segment, standing out as one of the world’s most dynamic residential markets and attracting ultra-high-net-worth individuals (UHNWIs).

According to the Global House Price Index—an international study by Knight Frank, the Portuguese partner of Quintela + Penalva—the country ranked fourth globally, with a 16.5% nominal annual rise in housing prices during the first quarter of 2026, trailing only Turkey (26.2%), Hungary (21.4%), and North Macedonia (16.7%).

Swiss cities, along with Lisbon and Madrid, are leading luxury real estate market growth in Europe, with increases ranging from 4.8% to 6.4% over the past 12 months.

Lisbon recorded a 3.4% increase during the same period. It ranks fourth among European cities for growth in this segment and 15th globally; in the final quarter of 2025, it held the 18th spot.

In real terms—adjusting for inflation—Portugal also posted one of the best performances globally, with growth of 13.4%.

“Knight Frank’s data confirms a trend we have been observing on the ground: Portugal continues to establish itself as one of Europe’s most attractive residential markets, underpinned by a combination of quality of life, stability, safety, and a distinctive real estate offering,” highlights Carlos Penalva, founding partner of Quintela + Penalva.

He adds: “Lisbon, in particular, retains a strong ability to attract international investors and high-net-worth buyers, consolidating its position among the leading destinations in the prime residential segment.

This performance demonstrates not only confidence in the Portuguese market but also the maturity and resilience of the sector, which continues to capture high-quality, long-term demand.”

Portugal’s performance comes against a backdrop where the global residential market is beginning to show signs of levelling out.

The Knight Frank index reveals that average global growth slowed to 1.4%—down from 2.3% in the previous quarter—marking the slowest pace since the third quarter of 2024.

Nevertheless, 91% of the 55 markets analysed continued to record annual increases in housing prices, highlighting the sector’s widespread resilience.

Lisbon sees continued appreciation in the prime residential sector and attracts millionaires

Portugal continues to show positive momentum in the luxury residential sector as well. The Prime Global Cities Index, which tracks the performance of prime markets across 47 international cities, ranks Lisbon 15th globally with 3.4% annual growth—surpassing markets such as Frankfurt, Berlin, Paris, New York, and London.

According to Liam Bailey, Global Head of Research at Knight Frank, “in 2021, data from the consultancy showed that Portugal had 1,462 individuals with a net worth exceeding US$30 million (approximately €26 million). That figure rose by 49.6% in just five years—a growth rate higher than that of China, the United States, France, the United Kingdom, or Spain. Portugal remains a location of interest for the wealthy and still has significant room for growth.”