How the real estate market in Portugal has changed in Early 2022
The real estate market in Portugal has changed in 2021: housing prices have increased by 13.8%, objects have become more often bought in small towns.
From January 2022, new conditions apply for the purchase of real estate under the residence permit program in Portugal for investment. Members are now unable to purchase housing in Porto and Lisbon. Demand for commercial real estate in these cities grew by 20%.
How the real estate market in Portugal has changed in Early 2022
The prices for the purchase of residential property in Portugal increased by 13.8% in 2021. A year earlier, the increase in prices amounted to only 5%.
In January 2022, the average cost per square meter of housing is 2,000 €. Real estate value in new buildings is 1.5 times higher than in the secondary market — 3088 € against 1871 € for m².
By 13,8%
Prices have risen for housing in Portugal in 2021
The highest real estate prices are recorded in Lisbon and Porto. The average cost of buying a home in the center of Lisbon is 4850 € per m², in Porto — 3400 €. Despite the high prices, almost 60% of real estate transactions are concluded in these cities.
The National Research Institute notes that in 2021, the demand for real estate in smaller cities such as Sintra and Marfa has increased. They are not included in the agglomeration of Lisbon and Porto, but are located close – at a distance of up to 50 km or an hour by car from major cities.
The home buying market in Portugal is developing mainly due to domestic demand, the share of transactions concluded with foreigners is 11% of the total number of transactions in 2021.
11%
Housing purchase transactions concluded with foreigners
The rental housing market. In Portugal, 22% of all real estate in the country is rented out. According to the National Research Institute, this is 16% more than 10 years ago.
22%
Of all real estate in Portugal are rented
Lisbon, Porto and the Algarve have the highest rental prices. In Lisbon, the average monthly payment is 1265 € for real estate in the city center and 865 € in other areas, in the Algarve — 1200 € and 750 € respectively. A fifth of those who rent housing in Portugal make a monthly payment of more than 1000 €.
Real estate for investment programs
From January 1, 2022, there are new rules for the purchase of real estate to participate in the residence permit program in Portugal for investment. The minimum transaction amount remains the same – 250,000 €, but investors will not be able to buy residential property in Lisbon, Porto and resort regions. Investors will be able to buy:
residential and commercial real estate in the interior regions of the country, the Azores and Madeira;
commercial real estate in Lisbon and Porto.
The real estate market in Lisbon and the coastal areas of Portugal is adapting to the new conditions of the investment program. Since the beginning of 2022, the demand for commercial properties in Lisbon and Porto has grown by 20%, for real estate in the hinterland — by 25%. The data is provided by Visao portal.
In the commercial sector, there is demand for premises that can accommodate shops and offices, as well as real estate in special residential complexes, where objects can be leased for management and generate income.
Three profitable properties in Lisbon
Commercial premises in Alfama
Arearn— from 62 m²
Price — from 370,000 €
Profitability — 4%
Commercial premises with arearnof 62 and 69 m² located in the historical part of Lisbon, Alfama district, on the first floor of a residential project. The arearnhas developed infrastructure: near the metro station, bars, restaurants. The premises can be used as a shop.
Premises for a shop in a residential complex, located in the tourist arearnof Lisbon. Price — from 370,000 €, yield — 4% per annum
Commercial premises in Santa Barbara
Arearn— 52 m²
Price — 350,000 €
Yield — 4%
Commercial premises located in the Santa Barbara area, in a residential project after renovation. Within walking distance is the metro station, coffee shops and restaurants. The room occupies the ground floor, it can be used as a shop.
Commercial premise for a shop in the historic part of Lisbon. Cost — 350,000 €, yield — 4%
Commercial premises in the Alcantara area
Arearn— 311 m²
Price — 830,000 €
Yield — 4%
Commercial premises located in the traditional residential arearnof Alcantara. It is adjacent to the LX Factory, an old industrial complex that has been turned into a popular modern cultural center.
Commercial premise with arearnof 311 m² in Alcantara region. Price — 830,000 €, yield — 4% per annum
Portugal’s parliament approved amendments to the nationality law on October 28th, 2025. The proposed changes extend the required residence period for citizenship 5 to 10 years for most foreign nationals. The law now awaits the president’s decision. Paul Lauber, Consultant and Compliance Anti-Money Laundering Officer, and Marielle Burti, in-house advocate at Immigrant Invest, explained how the amendments could affect current and future Golden Visa holders.
Romania is set to launch a Golden Visa program, creating a new pathway to residency in the European Union through real estate purchase. The minimum investment threshold is €400,000. Elena Ruda, Chief Development Officer at Immigrant Invest, has reviewed all available details of the upcoming program and analysed the opportunities it could create for investors.
Portugal approved amendments to its citizenship law on October, 28th, 2025. The law increases the naturalisation period from 5 to 10 years and allows citizenship to be revoked for serious offences. Discover which other EU countries are tightening citizenship rules in 2025, and where the route to a passport remains the quickest. Célia Castilho, Head of the Portuguese office at Immigrant Invest, analysed all available sources and explained how the changes will affect applicants.
