The Lisbon Real Estate Market 2023

The Lisbon Real Estate Market 2023

23rd August 2023

The past, the present and the future of Lisbon's real estate market.

If you are thinking about buying property in Lisbon in 2023, you are not alone. The city is a popular destination for both tourists and investors, and the real estate market has been on a tear in recent years.

However, there are signs that the market has cooled off. The average price of a home in Lisbon has risen by 6.5% in the past year. This may be the smallest growth since 2019 but is still a great indication of the long term interest in Lisbon's real estate market.

Which remains one of the most exciting across Europe's major capitals.

How did we get here?

The history of property prices in Lisbon has been volatile in recent years. There was a sharp decline in prices in the wake of the financial crisis of 2008, but prices have since rebounded and are now at an all-time high.

Here is a look at the historical trend of property prices in Lisbon:

  • 2008: Prices in Lisbon peaked at €3,600 per square meter.
  • 2009 - 2012: Prices fell by an average of 3.1% per year.
  • 2013 - 2014: Prices stabilised and then began to rise again.
  • 2015 - 2020: Prices rose by an average of 6% per year.
  • 2021: Prices rose by 11.2%, the fastest annual growth rate in over a decade.
  • 2022: Prices rose by 6.5%.

The future is bright

There are a few obvious factors that could be contributing to a slowdown. One is the rising cost of living in Portugal, which has been affected like other countries. Another is the fact that the Portuguese government has introduced a number of measures to cool the market, such as a stamp duty surcharge for foreign buyers.

Despite a small slowdown, the Lisbon real estate market is still considered to be a great investment for the long term. The city is a vibrant and growing metropolis with a strong economy. It is also a popular tourist destination and with new Digital Nomad Visa's available and the a wealth of tech investment in the city in the last five years there is always a great demand for rental properties.

In the last few years the number of investments into the tech industry has been enormous, with Amazon, Google, IBM, Microsoft, SAP, Cisco, Accenture, Deloitte, PwC and EY, to name a few, have all opened offices in the capital.

This new wave of commercial investment leaves the capital primed for long term capital appreciation and rental yields (both short and long term lets) with both tourism and the tech industries continuing to grow.

Growing economy, tourism industry and favourable business climate.

Lisbon is a city with a strong economy and a growing tourism industry. These factors contribute to the long-term value of buying and holding property in Lisbon.

The city's strong economy is driven by its tourism industry, which receives over 10 million tourists each year. The tech sector is growing and the city is investing heavily in its infrastructure, which is making it more attractive to businesses and residents.

These factors are all good for the real estate market in Lisbon. As the economy grows and the population increases, there is a greater demand for housing. This will naturally lead to rising property prices in the long term.

Buy and hold in Lisbon

Overall, Lisbon is a great place to invest in real estate. Over the years ahead we predict this will continue, given the aforementioned indicators.

Here are some specific examples of how these factors are contributing to the real estate market in Lisbon:

  • The tourism industry is driving demand for hotels and other short-term rental properties.
  • The tech sector is creating demand for office space and other commercial properties.
  • The city's investment in infrastructure is making it more attractive to businesses and residents, which is driving demand for all types of properties.
  • As these factors continue to drive growth in Lisbon, the real estate market is expected to remain strong in the long term.

If you wish to learn more, one of our advisers will be able to talk you through the different districts and properties available. You can also check out our portfolio of property in Lisbon to see what's available.


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