Lisbon has risen on the global stage and is now established as a dynamic cultural and business hub.

For residents the city offers a high quality of life, appealing climate and a lower cost of living compared to many other Western European cities. 

With a 98 per cent increase in prime residential prices over the past 10 years, Lisbon has outperformed a number of cities globally. This is well above many other European cities and second only to Berlin, which grew by 127 per cent over the same period. 

Both Berlin and Lisbon have benefited from fast-growing interest from both domestic and international buyers while values have risen from a low base.

Prime residential property in Lisbon appears good value when compared with its global counterparts. Values, at €8,400 per sq m, are 80 per cent below those in Hong Kong (the most expensive city in the world for prime residential property), 65 per cent below prime prices in New York and are around half those in London.

The highest prices are found in the Santo António district, where prime property averages €11,200 per sq m. Some of Lisbon’s most famous landmarks can be found here, including Marquis of Pombal Square and Avenida Da Liberdade.  

As in many prime residential markets around the world, the Covid-19 pandemic suppressed activity. In the first half of 2020 price falls of 4.3 per cent were recorded. However, we expect Lisbon to outperform other European cities in the near term.

This is different though to Lisbon’s experience during the Global Financial Crisis, when house prices experienced a large and sustained fall. Since then structural economic reforms, the opening up of residential markets, a Golden Visa scheme and some tax incentives for Europeans to move there have put the market on a much stronger footing.

Looking ahead, Lisbon’s prime residential market is forecast to be one of the strongest performers in Savills World Cities Prime Residential Index, both for the remainder of 2020 and the next five years. 

Portugal’s Golden Visa and NHR schemes are likely to keep international interest and investment in the market high, at least in the short to medium term, which will help the recovery from the impact of the Covid-19 pandemic.

In the long term, Lisbon continues to mature on a global stage while offering value in both a European and global context.

Further information 

Contact Paul Tostevin

Read more: Spotlight: Lisbon Residential Market

Read more: Savills Prime Index: World Cities