Cascais, Lisbon, Funchal. Faro and Oeiras most expensive cities to live in Portugal

Renting or buying a house continues to vary in prices between cities in Portugal. An analysis by Imovirtual of average housing prices recorded between December 2025 and February 2026, compared to the same period of the previous year, has identified the five most expensive cities to live in the country, with values ​​reaching €2,400 per month for rent and exceeding €1.35 million for property purchases.

The study identifies Cascais, Lisbon, Funchal, Faro and Oeiras as the cities with the highest prices for living in Portugal, considering both the rental and housing purchase markets.

Among the markets studied, Cascais stands out as the most expensive city to live in Portugal, with an average income of €2,400 per month and an average sale price that reaches €1.35 million. This municipality is therefore one of the most exclusive residential markets in the country, marked by strong national and international demand.

Next comes Lisbon, where rent is on average €1,800 per month, while the average sales price is €710,000. Despite remaining among the most expensive markets in the country, the data shows a slight reduction of 2.7% in rent compared to the same period last year, signalling a possible adjustment after several years of accelerated price growth in the capital.

The ranking of the most expensive cities to rent a house also includes Funchal, with an average rent of €1,700, and Faro and Oeiras, both costing ​​close to €1,600 per month. These markets reflect the strong pressure of demand in areas with high economic, tourist or residential attractiveness, where the available supply remains limited in relation to demand.

In the housing purchase market, the trend remains similar. After Cascais, Oeiras (€720,000) and Lisbon (€710,000) appear among the markets with the highest average prices for purchasing housing. The ranking also includes Lagos, with an average price of €685,000, and Óbidos, where the average value is around €652,500, reflecting the growing weight of the tourist and second home markets in national real estate appreciation.

The study also shows that price developments are not homogeneous across the country. While some markets on the coast and in tourist regions continue to register high price levels, several inland cities maintain significantly more affordable prices. Municipalities such as Braganza, with an average income of €550, or Guarda, at €562, illustrate a market with less demand pressure and a more moderate price evolution.

According to Sylvia Bozzo, Marketing Manager at Imovirtual, “the data shows that the most expensive markets continue to be concentrated in territories with high economic, tourist or international attractiveness. Cascais has clearly consolidated itself as a premium segment residential market, while cities such as Lisbon, Oeiras or Faro continue to enjoy very high levels of demand. At the same time, a greater geographic dispersion of demand is beginning to be observed, with some buyers and renters considering alternatives outside the most pressured urban centres.”

In all the main cities studied, the Portuguese real estate market currently has an average rental value close to €1,100 per month, while the average sale price is around €400,000, reflecting an increasingly heterogeneous market between territories with strong demand pressure but with areas with more affordable price levels.

Source: Imovirtual; Credits: Lisbon – Photo: Anastasiia Mitiushova/Unsplash