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While house prices in Portugal continue to climb at a record pace, new data from the National Statistics Institute (INE) shows that it’s still possible to find a real bargain – if you’re willing to head inland. Portugal’s property gap keeps growing According to INE, the median price of homes sold in Portugal reached €1,923 per square metre in the 12 months leading up to June 2025 – that’s a 15.8 per cent jump in just one year. But the rise isn’t evenly spread. Out of the country’s 304 municipalities, only 52 recorded prices above the national average. What this means in real terms is that in most parts of Portugal, you could buy a 100-square-metre home for less than €192,300. And if you move away from the coast, prices drop dramatically. In some small inland towns, the same space costs less than the price of a modest car. The cheapest places to buy a home in Portugal If you’re dreaming of owning a home in Portugal on a small budget, the best deals are far from the beaches. The ten cheapest municipalities are all inland, spread across the districts of Bragança, Vila Real, Guarda, Viseu, Castelo Branco, Coimbra, and Santarém. Leading the list is Figueira de Castelo Rodrigo, in the district of Guarda, where homes sold for just €203 per square metre in the last 12 months. That means you could own a 100 m² house for around €20,300 – making it officially the cheapest place in Portugal to buy a home. Next on the list is Sernancelhe, in Viseu, at €264/m², followed by Almeida (Guarda) at €296/m², and Vimioso (Bragança) at €299/m². These are the only four municipalities where you could still buy a 100-square-metre property for under €30,000, according to INE’s latest figures. Just slightly higher are Pampilhosa da Serra, Mação, Vinhais, Manteigas, Idanha-a-Nova, and Mesão Frio, where prices hover around €35,000 for the same size home. Even in Vila Velha de Ródão and Torre de Moncorvo, property remains below that figure. These small towns, often surrounded by forests, valleys and quiet roads, may not be the country’s tourist hotspots — but they’re attracting attention from buyers looking for peace, space, and an affordable way to live in Portugal. The most expensive municipalities: Lisbon, Cascais and the Algarve At the other end of the scale, some parts of Portugal are becoming almost impossible to afford. The top ten most expensive municipalities are all concentrated in Lisbon, Faro, Porto and Madeira – the only regions where prices start at €3,000 per square metre. Unsurprisingly, Lisbon leads the way with an average price of €4,525/m², followed closely by Cascais (€4,267/m²) and Oeiras (€3,802/m²). To put that into perspective, a small flat in Lisbon could buy you ten houses in Figueira de Castelo Rodrigo. The Algarve dominates this ranking, with five municipalities among the country’s most expensive: Loulé, Lagos, Aljezur, Albufeira, and Vila do Bispo. Outside these regions, only Funchal, on Madeira Island (€3,205/m²), and Porto (€3,060/m²) make it onto the list. Portugal’s housing divide These figures show a clear divide between Portugal’s booming coastlines and its quieter, rural interior. While the Lisbon area and the Algarve continue to attract foreign investors and digital nomads, much of the Portuguese countryside remains incredibly affordable by European standards. Experts say this contrast could eventually bring new life to inland Portugal, as people priced out of the big cities start exploring smaller towns where €30,000 can still buy a family home. For now, though, the difference is staggering – from €20,000 houses in Guarda to €450,000 flats in Lisbon, Portugal’s property market truly has two worlds. Stay tuned with Euro Weekly News for more news from Portugal
