Data from Imovirtual’s Municipal Barometer shows that seven municipalities in Portugal already have average sale prices of €750,000 or more, “whilst some of the highest rates of appreciation continue to be seen in significantly more affordable markets.” This trend shows that the market is becoming increasingly diversified, with “price levels and rates of appreciation following their own dynamics depending on each region.”

Sylvia Bozzo, Marketing Manager at Imovirtual, quoted in a press release, explains that “it is no longer enough to look at the municipalities where houses are most expensive to understand the evolution of the Portuguese property market. We continue to see very high prices in some areas, but we are also seeing significant price rises in markets with very different characteristics. This demonstrates that the sector’s development depends increasingly on local dynamics — such as residential demand, investment, tourism or quality of life — and not just on a single national trend.”

Where are the most expensive homes?

Imovirtual reveals that the highest house prices are concentrated in a small number of municipalities.

Cascais remains the most expensive municipality in which to buy a house, “with an average price of €1.3 million, followed by Grândola at €1.1 million, and Calheta, in Madeira, at €920,000.”

The other seven municipalities where the average house price exceeds or reaches €750,000 are “Castro Marim (€860,000), Loulé (€779,000), Oeiras (€750,000) and São Brás de Alportel (€750,000).”

The Algarve’s significance

Imovirtual notes that the Algarve is becoming increasingly significant for the higher-end markets, featuring in a top 10 that also includes the municipalities of Lisbon (€720,000) and Sines (€670,000).

Most affordable municipalities

As regards the most affordable homes, Vila Velha de Ródão is the most affordable municipality, with an average price of €49,000, “followed by Pampilhosa da Serra (€56,250), Vinhais (€57,000) and Proença-a-Nova (€67,500).” Castelo Branco, Baião, Guarda, Bragança, Portalegre and Beja also feature in the top 10, with average prices not exceeding €210,000.

Imovirtual also notes that these markets have seen the highest annual price increases, as is the case with Portalegre, which has recorded a 32.6 per cent increase.