House prices rise 13% in the third quarter, despite a 12.5% drop in sales

In Portugal, housing prices rose by 13.1% in Q3 2025, despite a 12.5% drop in sales. Approximately 36,000 homes were sold, with average prices reaching €3,416 per square meter. In Lisbon, prices hit €5,963/m², a 7.4% increase, while Porto saw a 14.7% rise to €4,382/m². The decline in sales is attributed to affordability issues rather than a decrease in housing needs. JLL notes a structural scarcity of available properties continues to drive prices up, despite lower activity levels. Additionally, there was a 5% increase in construction completions and a 4.1% rise in licensing, indicating a gradual recovery in new development activity.