Imovirtual, a real estate portal in Portugal, has released the ranking of the most sought-after cities for rentals and purchase of properties over the last year, according to the portal´s users.

Lisbon, Vila Nova de Gaia, and Sintra are highlighted as national preferences, reflecting changes in housing trends and the dynamics of real estate markets in Portugal.

Rentals

In the rental market, Lisbon remains in the lead with almost a fifth of national demand over the last year, despite the average rental prices increasing by 35% compared to 2023. Porto ranks second with 7% of overall demand, with Sintra following with 5% of total searches for rental homes. Vila Nova de Gaia, Amadora and Loures are also highlighted as popular municipalities for home rentals. Sintra´s increased popularity is due to its consolidating itself as an alternative to more central areas due to its economic accesibility and proximity to large urban centres.

The data from Imovirtual shows an interesting discovery: Vila Nova de Gaia has become the most sought-after city in the country for home purchases. On average, homes in Vila Nova de Gaia cost about €250,000, a more attractive value than cities like Porto, Lisbon, or Sintra. Lisbon ranks second in terms of home purchasing preferences, despite the average housing price being above the national average of €375,000. Sintra ranks third, making it a popular choice for those looking to live near Lisbon but with more competitive prices. Braga and Maia also stood out as popular destinations, showing a growing interest in cities outside major metropolitan areas.

Nevertheless, there are multiple factors to Portuguese people seeking these cities. Lisbon and Porto are favourites for those wishing to live in the centre, with easy access to public transport and an urban lifestyle, good services and job opportunities. However, the high prices are increasingly driving demand to cities like Sintra and Vila Nova de Gaia, where housing is more affordable.

For instance, Sintra has become attractive due to its combination of economic access, environmental quality, and proximity to Lisbon. Vila Nova de Gaia stands out for its dynamic growing economy, easy access to Porto and overall good quality of local infrastructure, combining lower living costs with high residential quality.

Market trends

According to Imovirtual, these results show a clear trend in the Portuguese real estate market: the gradual decentralisation of demand, with the Portuguese favouring peripheral cities over large urban centres, attracted by more competitive prices and a more balanced lifestyle. This scenario, also influenced by changes in lifestyle, telework and the necessity for larger living spaces, suggests that living away from the centres may become more popular over the next few years, creating new opportunities for investors and increasing real estate dynamics in less traditional areas.