Portugal recorded the fourth-largest annual increase in house prices among 55 housing markets tracked worldwide, according to a Knight Frank study published Monday. Prices in Portugal rose 16.5% year-on-year in the first quarter, the real estate consultancy said.
The findings come from the latest edition of Knight Frank's Global House Price Index, which said Portugal remains among the world's most dynamic residential markets. Compared with the final quarter of 2025, prices in Portugal rose 3.4%, confirming the continuation of the country's upward trajectory, according to the index, produced in partnership with Portuguese real estate consultancy Quintela + Penalva since 2021.
In a global context described as one of greater moderation, Portugal's annual nominal price growth was surpassed only by Turkey, at 26.2%, Hungary, at 21.4%, and North Macedonia, at 16.7%.
Global price growth slows
Across the 55 markets Knight Frank tracked, average annual nominal house price growth slowed to 1.4% in the first quarter of 2026, down from 2.3% in the final quarter of 2025. Still, 91% of the markets recorded an annual price increase, up from 87% in the previous quarter.
With annual growth of 16.5%, Portugal's housing market performed significantly above the 1.4% global average, reinforcing its position among the destinations with the strongest residential price gains, Knight Frank said.
Adjusted for inflation, Portugal's performance stood out further. Real annual price growth reached 13.4%, the fourth-highest among the markets tracked, behind only Hungary and North Macedonia and ahead of Croatia.
Executives point to strong demand
Carlos Penalva, founding partner of Quintela + Penalva/Knight Frank, said the results confirmed what the firm had been observing in the Portuguese market: that Portugal maintains very strong residential momentum and continues to stand out in the European and international context, according to a statement. Penalva said the 16.5% annual increase, which placed Portugal fourth among the 55 markets analyzed, demonstrated the resilience of demand and the attractiveness Portugal continues to hold for buyers both at home and abroad.
Francisco Quintela, also a founding partner of Quintela + Penalva/Knight Frank, said the 13.4% real growth figure showed the trend was not simply a nominal effect. Quintela said the combination of still-limited supply, demand for quality assets and Portugal's appeal as a place to live and invest continued to sustain the market. He said the challenge for the coming years would be ensuring that increased supply keeps pace with demand, to allow for more balanced and sustainable growth.
Europe dominates the rankings
The first-quarter results reinforced the dominance of European markets at the top of the ranking. Most of the 12 markets that recorded annual nominal growth above 10% were in Europe, particularly Central, Eastern and Southern Europe, according to Knight Frank.
Portugal's performance contrasted with other major international markets. Prices fell 6.3% year-on-year in mainland China and 5.0% in Canada over the same period, while the United States saw nominal growth of just 0.7%.
A new phase for housing worldwide
Liam Bailey, Knight Frank's global head of research, was also cited in the statement. Bailey said the world's residential market was entering a new phase marked by a slowdown in price growth, adding that future developments would depend on whether lower interest rates could boost demand without reigniting pressure on affordability.
