Lisbon, Aug. 11, 2026 (Lusa) - A study by global real estate promotor Knight Frank reveals that house prices in Portugal rose by 16.5% in the first quarter, year-on-year, recording the fourth-highest nominal annual increase among the 55 markets analysed.
Published on Monday, the latest edition of Knight Frank's «Global House Price Index» indicates that Portugal thus remains «among the world's most dynamic residential markets».
Compared with the final quarter of last year, the country also recorded growth of 3.4%, «confirming that the Portuguese residential market remains on an upward trajectory», according to the findings of the Knight Frank index; Knight Frank has been a partner of the property consultancy Quintela + Penalva since 2021.
Against a global backdrop of «greater moderation», the annual nominal growth in house prices in Portugal is surpassed only by that of Turkey (+26.2%), Hungary (+21.4%) and North Macedonia (+16.7%).
Across the 55 markets analysed by Knight Frank, year-on-year nominal growth in residential prices slowed to 1.4% in the first quarter of 2026, compared with 2.3% in the final quarter of 2025. Nevertheless, 91% of markets recorded an annual rise in prices, up from the 87% observed in the previous quarter.
With an annual increase of 16.5%, Portugal ranks as one of the strongest residential markets globally, significantly above the global average of 1.4%, reinforcing its position amongst the destinations with the highest residential price growth.
When price trends are considered in real terms, Portugal also stands out as having «one of the most robust performances», recording real annual growth of 13.4% – the fourth-highest figure among the markets monitored, behind only Hungary and North Macedonia and ahead of Croatia.
«The results of the ‘Global House Price Index' confirm what we have been observing in the Portuguese market: Portugal maintains very strong residential momentum and continues to stand out in the European and international context,» says the founding partner of Quintela + Penalva/Knight Frank, quoted in the press release.
Carlos Penalva highlights that the annual increase of 16.5% (which places the country fourth among the 55 markets analysed) «demonstrates the resilience of demand and the appeal that Portugal continues to hold for both domestic and international buyers».
Similarly, Quintela notes that the real growth of 13.4% shows that this is not merely a nominal effect: «The combination of still-limited supply, demand for quality properties and Portugal's appeal as a destination to live and invest in continues to underpin the market,» he maintains.
«The challenge for the coming years will be to ensure that the increase in supply keeps pace with this demand, enabling more balanced and sustainable growth,» he adds.
The first-quarter results of the ‘Global House Price Index' reinforce the dominance of European markets at the top of the rankings, with the majority of the 12 markets that recorded an annual nominal increase of over 10% being located in Europe, particularly in Central, Eastern and Southern Europe.
Portugal's performance contrasts with trends observed in other major international markets: over the same period, prices fell by 6.3% year-on-year in mainland China and by 5.0% in Canada, whilst the United States saw a nominal increase of just 0.7%.
Also quoted in the press release, Knight Frank's Global Head of Research, Liam Bailey, believes that the global residential market is entering a new phase, characterised by a slowdown in price growth, and considers that future developments will depend on the ability of lower interest rates to boost demand without reigniting pressures on affordability.
PD/AYLS // AYLS
Lusa
