In 2025, according to a recent analysis by the Bank for International Settlements (BIS), house prices in Portugal rose by 16.3 percent in real terms, the third largest annual increase among countries analysed.

Portugal ranks just below North Macedonia, with an increase of 20 percent, and Hungary with an increase of 16.8 percent, Jornal de Negócios reports.

This annual increase in Portugal greatly surpasses the 3 percent increase in house prices in the overall eurozone.

Croatia places fourth on the list with a 12 percent annual increase, Spain on fifth with a 9.6 percent increase, and Slovakia on sixth with an 8.6 percent increase.

Amongst the analysed countries, only three have experienced a fall in house prices: Finland with a 3.2 percent fall, Luxembourg with a 2.8 percent fall, and Austria with a 1.8 percent fall.