Article · MATTERS No. 4
Record-high prices, a more selective market
Rising does not mean everything will sell
The median asking price reached a new high in July. At the same time, more prudent lending widens the gap between asking prices and purchasing capacity.
Housing asking prices in Portugal rose again in July 2026. According to the index published by idealista and reported by Dinheiro Vivo, the median advertised value reached €3,210 per square metre, 8% higher than in the same month of the previous year.
The figure confirms pressure on the market, but it does not mean that every property appreciates in the same way or that any price will be absorbed. Supply indices measure advertised values; a buyer's decision depends on income, financing, location, the condition of the property and comparison with real alternatives.
From August, the reduction in the recommended financial-effort limit for credit makes this distinction even more relevant. A household may recognise value in a home and still be unable to finance the purchase under the required conditions.
The market is therefore entering a more selective phase. Good projects continue to benefit from the shortage of supply, but consistency between area, type, location and price becomes central. Square metres with no function, solutions that are difficult to maintain or values supported solely by the general market trend may extend the sales period.
For buyers, it is important to compare the total cost, not only the price per square metre. For developers, it is important to design around the likely customer budget. In a market at record highs, product discipline is as important as demand.