Construction Cost per Square Metre: 2026 Reference Values in Portugal
The Portuguese National Association of Insurance Agents and Brokers (APROSE) has released the 2026 reference values for residential construction costs per square metre, calculated according to the methodology traditionally used by the Portuguese insurance sector before the introduction of the SCRIM reconstruction cost simulator.
Although these figures are often associated with the calculation of insured values for home insurance policies, their relevance extends beyond the insurance sector. The evolution of construction costs also provides a useful indicator for understanding broader trends in the Portuguese property market, including building costs, reconstruction values and long-term property valuation.
Construction Cost Values for 2026
For 2026, the published reference values are:
- Zone I: €945.67/m² (up €20.72/m² compared with 2025)
- Zone II: €826.65/m² (up €18.11/m² compared with 2025)
- Zone III: €748.94/m² (up €16.41/m² compared with 2025)
All three zones recorded increases compared with the previous year.
Historical Evolution
For those wishing to analyse the historical evolution of residential construction costs in Portugal, we provide a free downloadable table covering previous years.
Why Are These Values Still Used?
Until 2014, the Portuguese Government published annual regulations establishing official construction cost values per square metre for specific housing-related purposes.
Although that legal framework was subsequently repealed, the historical values continued to be updated using the annual coefficients published by Portugal's National Statistics Institute (INE), allowing the insurance sector to maintain a widely recognised reference for reconstruction cost estimates.
Today, these figures continue to be used as indicative benchmarks when assessing rebuilding costs and determining insured values.
What Is SCRIM?
Since 2021, the Portuguese Insurance Association (APS) has provided SCRIM, the Property Reconstruction Cost Simulator.
This tool offers a more detailed estimate of rebuilding costs by taking into account factors such as construction type, energy performance, building characteristics and other elements that may influence the actual reconstruction value of a property.
As a result, SCRIM has become an increasingly important tool within the insurance sector, helping insurers and property owners establish more accurate insured values.
Why Do These Values Matter to the Property Market?
Construction costs per square metre are one of the indicators that help explain developments within the real estate market.
Naturally, the market value of a property depends on many factors beyond construction costs alone. Location, accessibility, supply and demand, planning regulations and the specific characteristics of each property remain decisive factors.
Nevertheless, changes in construction costs influence decisions made by developers, investors, property owners and buyers, making them an important component in understanding housing market dynamics.
For those planning to build, renovate or undertake major construction projects, these figures provide a useful benchmark for tracking cost trends within the sector.
For investors and buyers, they offer additional insight into the economic environment surrounding residential development and future housing supply.
Home Insurance and Insured Capital
Construction cost reference values remain particularly relevant when determining the insured value of residential buildings under home insurance policies.
As a general principle, the insured value of a property should reflect its reconstruction cost, excluding the value of the land on which it stands.
When calculating this amount, all relevant construction elements should be considered, including a proportional share of common areas where applicable.
Maintaining an adequate insured value helps reduce the risk of underinsurance and contributes to better financial protection in the event of a claim.
Updating the Insured Value
The responsibility for reviewing and updating the insured value remains with the policyholder.
The most common mechanisms include:
Agreed Annual Adjustment
The insured value is automatically updated according to a percentage previously agreed by the policyholder.
Indexed Adjustment
The insured value is automatically adjusted using indices published by the Portuguese Insurance and Pension Funds Supervisory Authority (ASF), including:
- IE (Buildings Index)
- IRH (Contents Index)
- IRHE (Buildings and Contents Index)
Reference Zones
The Zone I, Zone II and Zone III classification follows the system historically used in Portugal to differentiate residential construction cost references.
Zone I includes district capitals, municipalities within the Lisbon and Porto metropolitan areas and the Autonomous Regions of Madeira and the Azores.
Zone II includes a number of medium-sized urban municipalities.
Zone III covers the remaining municipalities in mainland Portugal.
Methodological Note
The values presented correspond to the amounts published by APROSE for 2026, calculated according to the methodology traditionally used by the Portuguese insurance sector before the introduction of SCRIM. They should be regarded as indicative reference values and do not replace a property-specific assessment.
Source: APROSE – Portuguese National Association of Insurance Agents and Brokers.