A new report from online property portal Idealista has revealed that access to affordable housing in Portugal is becoming increasingly difficult, with prices rising far faster than wages, and lower-cost options rapidly vanishing from the market.
According to the study released on Thursday, 27 November, by the property platform, the number of homes for sale across Portugal at up to €200,000 fell by 73% between 2020 and 2025, leaving many families with virtually no options within a reasonable budget. Even properties priced between €200,000 and €300,000 dropped by 32%.
In contrast, listings between €400,000 and €500,000 have risen by 37%, while properties above €500,000 have surged by 42%. The trend is nationwide but particularly stark in cities such as Funchal, Faro, Lisbon, Ponta Delgada, Porto, Setúbal, Aveiro and Braga, where homes under €200,000 have almost disappeared from the market in a short space of time.
By the summer of 2025, this segment accounted for just 1% of available homes in Funchal, 2% in Lisbon, 3% in Faro, and 5% in Porto, figures far below those recorded five years earlier. “Only five years ago, in the summer of 2020, these same price ranges made up more than 25% of the market in Funchal and Porto, and over 10% in Lisbon and Faro,” the platform notes.
In contrast, properties priced above €500,000 already dominate the market in Funchal, Faro, and Lisbon, each exceeding 60% of local supply. Even in inland cities, where cheaper housing still carries weight, the presence of so-called premium properties is growing.
The market is showing a clear trajectory, the report concludes: affordable housing is disappearing, and Portugal is moving towards a market increasingly shaped by premium prices, with a population living largely on non-premium salaries.
Source: Idealista
