In the first quarter of 2026, Portugal recorded the highest increase in house prices worldwide. According to data published by Idealista News, based on an international study, real house prices in Portugal rose by 15.2% — a figure that stands out not only because of its scale, but also because of the wider context: most property markets around the world are cooling.

The figures putting Portugal at the top

While average house prices worldwide fell by 1.2% at the beginning of 2026, following a 0.5% decline at the end of 2025, Portugal moved in the opposite direction.

Portugal ranks first among the 57 economies analysed, ahead of North Macedonia (+12.5%) and Bulgaria (+10.8%).

To understand the scale of the difference, it is worth comparing Portugal with other markets during the same period:

Eurozone: +2.6%
Spain: +9.9%
Italy: +3.8%
Canada: −7%
United States: −2%
United Kingdom: −2%
China: −7.1%

In other words, house prices are falling in many of the world’s most closely watched property markets — in some cases significantly. Portugal is the clearest exception to this trend.

Why is this happening?

The explanation highlighted by the study comes down to a relatively simple equation: strong demand is meeting a limited supply of homes, particularly in the more affordable price ranges.

This imbalance is something we have already been observing closely in the market through our work with buyers and sellers — and the latest figures now confirm it clearly.

The Portuguese Government has already introduced measures aimed at easing this pressure, including reducing VAT on construction to 6% and simplifying licensing procedures. These are steps in the right direction, but their impact is likely to be felt mainly in the medium and long term. They do not immediately resolve the imbalance between the number of people looking for homes and the properties currently available.

What does this mean for buyers and sellers?

If you are selling, this is a good time to understand the true market value of your property. In a market where demand continues to exceed supply, many homeowners may be underestimating what their property is worth today.

If you are buying, the figures suggest that waiting for prices to “cool down” may not necessarily pay off. Unlike markets such as Canada or the United States, current data does not point to an imminent slowdown in Portugal.

Want to know how much your property is worth?

At BuyCasa, we follow these market figures closely because they allow us to provide informed advice to anyone considering buying, selling or investing in Portugal — without empty promises, but with an honest interpretation of what the data tells us about the current market.

If you would like to know how much your property is worth today, or understand what makes sense for your buying budget, talk to us. Our property valuation is free and without obligation.

Source: Idealista News — “Portugal tem maior subida dos preços das casas no mundo”, 1 September 2026.