Investing in Santarem: Market Data & Risk Analysis 2026

Portugal recorded the fourth-lowest interest rate in the euro area for new housing loans, according to European Central Bank figures for April. Average rates on new mortgage contracts in Portugal stood at 2.85%, below the euro area average of 3.43%. Only Malta, Bulgaria and Spain posted lower rates, at 2.08%, 2.45% and 2.8% respectively. By contrast, rates in France, Italy and Germany were above 3%, at 3.11%, 3.47% and 3.84%. The Bank of Portugal also used its June Economic Bulletin to highlight the persistence of housing inflation. Between 2017 and 2024, the median sales price per square metre rose about 88% and median rents per square metre increased about 81%. In 2025, median sales values rose about 16%, implying an increase of about 120% over 2017 to 2025, although official rent data for 2025 are not yet available. The strongest price gains were concentrated in the Porto metropolitan area, Greater Lisbon and the Setúbal Peninsula, with Sintra, Seixal, Barreiro, Moita and Setúbal all posting increases above 200% between 2017 and 2025. The central bank also said consumers expect housing prices to rise by 7% on average in Portugal between January and March 2026, versus 3.7% in the euro area, indicating that cheap financing is supporting demand in a market where prices and rents remain under upward pressure.

Lisbon will host a conference on 23 June dedicated to the main challenges and opportunities facing Portugal’s housing sector. The event, titled “Ano Zero da Habitação?”, is being organised by CMS Portugal in partnership with Jornal Económico and will take place at the CMS Portugal auditorium in Lisbon from 9:00 a.m. It will bring together representatives from the government, local administration, the financial sector and real estate development to discuss access to housing, financing, taxation and possible responses to the country’s housing needs. The article places the debate in a market context marked by scarce supply, rising prices and difficulties in access to housing for families and businesses. It does not announce new policy measures or transaction data, but it highlights the pressure on both the market and public policy as stakeholders search for solutions that could make the sector more balanced, sustainable and inclusive. Attendance is free, subject to prior registration. For property investors and housing market participants, the significance lies in the fact that senior public and private actors are openly framing housing as a central economic issue, which signals continued policy attention to supply constraints, financing conditions and taxation in Portugal’s real estate market.

According to recent Bank of Portugal data, Portuguese house prices more than doubled between 2017 and 2025 in 157 municipalities. The strongest increases were concentrated in the Lisbon Metropolitan Area, the Porto Metropolitan Area and the Setúbal Peninsula, with municipalities such as Sintra, Seixal, Barreiro, Moita and Setúbal posting gains above 200% in median transacted housing price per square metre. The study says this pattern is linked largely to demand shifting toward more affordable municipalities, especially on the outskirts of major urban centres. Rental conditions followed a similar path: between 2017 and 2024, median rents per square metre more than doubled in 23 municipalities, with Grândola, Sines and Moita among the largest risers, each above 125%. Looking ahead, consumer expectations between January and March 2026 pointed to average house-price growth of 7% in Portugal, above the euro area average of 3.7%. The report also notes that less than 60% of transactions used bank credit in recent years, although housing lending has increased since early 2024 as interest rates fell and support measures for young buyers took effect. The key market implication is that Portugal’s housing cycle remains strongly expansionary, with price pressure spreading beyond the largest urban cores.