Housing demand recovers in 2Q with sales up 7%

The housing market in mainland Portugal recorded 39,210 transactions in the second quarter of 2026, up 7.0% from the previous quarter, when 36,650 homes were sold.

This result reverses the 12.1% drop recorded in the first quarter compared to the end of 2025—a period when approximately 41,000 homes were traded per quarter, according to data from Confidencial Imobiliário.

According to the SIR (Residential Information System), the average sale price in Portugal stood at €325,342 per unit, with homes taking an average of five months to sell.

The trend of rebounding sales is evident across all regions. In the Lisbon Metropolitan Area, sales rose by 7.0% to 11,790 transactions, reversing an 8.4% decline; meanwhile, the Porto Metropolitan Area recorded 6,500 transactions—a 7.9% increase over the previous quarter, which had seen a 10.3% drop.

In the Algarve, the recovery stood at 6.3%, with 2,875 homes sold—a particularly notable figure following the 16.6% contraction observed in the first quarter.

“This recovery mirrors the sentiment captured by the latest survey of market operators—the Portuguese Housing Market Survey—which had already indicated a market turning point following a period of sluggish activity.

In the second quarter, Euribor rates halted their upward trend and tensions in the Persian Gulf eased; this boosted market confidence and drove a recovery in demand indicators,” explains Ricardo Guimarães, Director of Confidencial Imobiliário. Meanwhile, residential sales prices continue to show strong growth, even signaling a slight acceleration in the pace of the rise.

Confidencial Imobiliário’s Residential Price Index shows a 3.5% quarterly change for the second quarter—0.3 percentage points higher than the figure recorded in the first quarter (3.2%).

It is worth noting that, despite remaining at very high levels, price appreciation had shown signs of moderating earlier in the year; this trend is still evident in the year-on-year growth rate, which has dropped below the 21% levels seen earlier in the year to reach 18.6% in June.

Source: Confidencial Imobiliário

Image: Porto Metropolitan Area recorded 6,500 transactions—a 7.9% increase over the previous quarter, which had seen a 10.3% drop.