The gap between Portugal’s most expensive and most affordable municipalities continues to widen. According to the first Municipalities Barometer from Imovirtual, January 2026 shows that while rents and sale prices are rising sharply in urban and tourist hotspots, interior regions and the islands remain much more accessible.

In the rental market, Cascais leads the way with an average rent of €2,500, up 8.7 percent from December and 13.6 percent from last year, despite still having over 500 active listings. Lisbon follows with an average of €1,800 (+4 percent monthly; +5.9 percent annual), while the Funchal market also hits €1,800, marking a 12.5 percent increase year-on-year, though with fewer options available.

Other high-demand areas include Oeiras at €1,400 (+3.7 percent monthly; +12 percent yearly) and Porto, where rents average €1,150 (+4.5 percent month-on-month and year-on-year).

Some municipalities are far more affordable. Porto Moniz is the cheapest, with an average rent of €600, stable from last month but 4.3 percent higher than January 2025. Viseu averages €700, unchanged monthly but up 7.7 percent yearly. Coimbra sits at €800, rising 11.1 percent from last year, while Aveiro remains at €900, and Braga at €950, both steady month-to-month but slowly catching up to the prices of bigger cities.

These figures show a market that’s increasingly polarised: booming demand and high rents in the coastal and urban hubs, contrasted with stable but gradually rising prices in the interior and smaller towns.

Sales

In the property sales market, price growth continues to be strongest in premium municipalities, while mid-range markets are also beginning to see more consistent increases.

Once again, Cascais leads the way with an average sale price of €1,350,000, up 12.5 percent month-on-month and 22.7 percent year-on-year. Calheta (Madeira) follows at €950,000 (+5.6 percent monthly; +18.8 percent yearly), though with a very limited supply. Loulé stands out with an average of €813,200, registering one of the highest year-on-year growth rates in the country (+36.7 percent), reflecting strong demand in the Algarve. Oeiras averages €725,000 (+3.6 percent monthly; +11.5 percent yearly), while Lisbon reaches €720,000 (+5.9 percent monthly; +16.1 percent yearly), maintaining the largest volume of listings nationwide.

On the other end of the spectrum, some municipalities remain more affordable while still experiencing steady growth. Porto averages €420,000, down slightly by 2.3 percent from last month but still up by 7.7 percent year-on-year. Coimbra rises to €290,000, marking a substantial +28.9 percent annual increase, while Leiria reaches €337,000 (+20.4 percent yearly). Aveiro averages €375,000, with a slight monthly dip but a 10.3 percent year-on-year increase, and Braga sits at €370,000, up 13.8 percent over the past year.

"This barometer confirms that the Portuguese real estate market is becoming increasingly fragmented at the local level," says Sylvia Bozzo, Marketing Manager at Imovirtual. "The data shows intense pressure in urban and tourist municipalities, both in rentals and sales, while other areas continue to attract demand due to their relative affordability."

Overall, the municipal analysis shows that as Portugal enters 2026, the housing market is marked by significant regional disparities, with widening gaps in both pricing and availability.