Houses bought by foreigners are nearly 50% more expensive

The regions with the highest median house prices in Portugal also see a significant presence of buyers with tax residency outside the country. A report from the National Institute of Statistics (INE) indicates a slight slowdown in overall price increases, now at 18.4% year-on-year. In Greater Lisbon, foreign buyers paid a median of €5,878 per square meter, compared to €4,000 for local buyers, highlighting the impact of foreign purchases on price hikes. Similar trends are observed in Porto and the Algarve, although the differences are less pronounced. The analysis has limitations, as it does not distinguish between larger and smaller homes or specific areas. Data from April to June 2026 shows that Lisbon had the highest median housing price among municipalities with over 100,000 inhabitants, with significant price differences based on the buyer's tax residency. The INE uses median calculations to better represent typical housing prices, avoiding distortions from extreme values.