House prices in Portugal increased by 16.5% but sales fell: Remarkable divergence in the housing market

While housing prices continued to rise in Portugal, the number of houses sold began to decrease. According to the latest data from Instituto Nacional de Estatística, house prices increased by 16.5% in the second quarter of 2026 compared to the same period last year. On the other hand, the number of house sales decreased by 6.4%.

The data reveal a significant divergence in the Portuguese housing market: fewer homes are changing hands, but the prices of homes sold are still rising very quickly.

40,142 houses were sold in three months

According to INE, a total of 40,142 houses were sold in Portugal between April and June 2026.

This figure means a 6.4% decrease compared to the same period in 2025.

Although the number of sales decreased, the total value of transactions increased by 4.2% and reached 10.7 billion euros.

When these two figures are evaluated together, the basic trend in the market becomes clearer: while the number of transactions is decreasing, the high prices paid per house keep the total sales value high.

Second-hand houses became expensive faster

There is also a significant difference in price increase between new and existing homes.

Prices of existing homes increased by 18% annually.

The increase in new houses was 12.3%.

Compared to the previous quarter, the general house price index increased by 3.6%.

Therefore, although the annual increase is still extremely high, there is a limited slowdown in the price increase compared to the previous quarter.

Tax abroad Purchases of residents also decreased

One of the striking details in the INE data concerns buyers with tax residence outside Portugal.

People in this group bought 1,890 houses in the second quarter.

This figure corresponds to approximately 4.7% of total transactions and represents a 10.3% decrease compared to the same period last year.

Therefore, although it is not possible to attribute the decline in sales volumes solely to foreign buyers, there is a significant decrease in this segment as well.

Why do prices rise while sales decline?

Sales volume and price do not have to move in the same direction.

The fact that housing supply is limited compared to demand, the characteristics of the houses on sale, financing conditions and supply pressure, especially in high demand regions such as Lisboa, Porto and Algarve, may support prices.

Therefore, the 6.4% transaction decline does not automatically mean that house prices have started to fall.

INE's data shows the opposite: while the number of sales is decreasing, the price index is still rising by double digits.

An early indicator of the government's housing measures

The data will also be used when discussing the impact of the government's housing policies.

But timing is important here.

Some important tax changes in the housing package came into effect in 2026. Therefore, it is too early to announce the final result of the entire housing package using second quarter data.

Reliably for now What can be said is this:

The number of house sales started to decrease in Portugal, but this decrease has not yet turned into a decline in prices.

Resources

Instituto Nacional de Estatística — Índice de Preços da Habitação, 2nd trimester de 2026, 22 September 2026

https://webinq.ine.pt/home

The Portugal News — Os preços da habitação abrandam em Portugal, 22 September 2026

https://www.theportugalnews.com/pt/noticias/2026-09-22/desaceleracao-dos-precos-da-habitacao-em-portugal/1090017