Barbara Queiróz Updated: September 16, 2025
The Lisbon luxury market grew by 2.4 percent in Q1 and Q2 of 2025. This jump puts the Portuguese capital ahead of the global average of 0.7 percent, making it one of Europe’s most desirable destinations for upscale real estate.
The most popular and expensive areas for luxury real estate in Lisbon continue to be Avenida da Liberdade, Príncipe Real, Chiado, and Lapa. Despite the rise in prices, there is an influx of foreign buyers, especially investors from the United Kingdom, the United States, and Brazil.
In this article, we will analyze the performance of the luxury residential market in Lisbon for the first half of 2025. This includes statistics on international demand and average property prices in prime districts.
Lisbon's Upscale Real Estate: Latest Statistics
The value of Lisbon’s luxury market went up by 2.4 percent in the first (Q1) and second quarter (Q2) of 2025. This data comes from a recent Savills World Cities Prime Residential Index report, which tracked 30 cities. After a strong 2024, the global average growth rate was 0.7 percent.
As of July 2025, home prices for luxury properties in central Lisbon are about €5,829 per square meter in the metropolitan area and over €6,100 per square meter across the center in most neighborhoods, mainly Chiado, Avenida da Liberdade, Lapa, and Príncipe Real.
Rent increased in Lisbon, Portugal, by 8.1 percent. Although the costs are among the highest in Europe, they are still more affordable than those in major European capitals like London and Paris. Rents are growing faster than property prices, so investors focus more on homes that can earn a better income.
Why are foreign investors interested in luxury properties in Lisbon?
Foreign investors are drawn to Lisbon’s luxury market because of its strong investment potential, robust rental yields, and capital appreciation. The city’s high quality of life, political stability, and safety are major lifestyle attractions.
There is a constant demand to buy properties in Lisbon. However, not many homes are available for sale. This creates a powerful dynamic that protects property values and allows them to thrive, even when other markets are struggling with economic and geopolitical downturns.
Based on data from Q1 2025, Lisbon ranks among the top seven cities for both local and foreign investors. Records from Idealista indicate 79.1 percent national demand and 20.9 percent international demand for luxury homes for sale that cost more than €1 million.
The table below provides a list of the best cities for foreign investors in luxury real estate.
City | International demand (in percentage) | National demand (in percentage) |
Ponta Delgada | 48.9 | 51.1 |
Funchal | 41.2 | 58.8 |
Faro | 40.3 | 59.7 |
Viana do Castelo | 28.7 | 71.3 |
Santarém | 24.7 | 75.3 |
Évora | 22.4 | 77.6 |
Lisbon | 20.9 | 79.1 |
Porto | 19.6 | 80.4 |
Braga | 19.0 | 81.0 |
Setúbal | 18.4 | 81.6 |
Aveiro | 16.1 | 83.9 |
Coimbra | 11.6 | 88.4 |
Source: Idealista, Q1 2025
Most foreigners who invest in luxury properties in Portugal are from the UK, the US, Germany, and Brazil. The municipality of Lisbon saw the strongest interest in high-end properties from American and British investors.
The table below provides a detailed analysis of the percentage of home buyers in Portugal based on nationality.
Country | Demand from foreign buyers (in percentage) |
United Kingdom | 15.0 |
United States | 13.1 |
Germany | 9.6 |
Spain | 9.2 |
France | 8.3 |
Netherlands | 5.5 |
Brazil | 4.9 |
Switzerland | 4.7 |
Canada | 3.4 |
Belgium | 2.1 |
Source: Idealista, Q1 2025
What is the market outlook for Lisbon luxury real estate?
The value of luxury properties in Lisbon city is estimated to increase by a minimum of 4 percent and potentially as much as 5.9 percent for the rest of 2025. The capital value will change in major cities around the world.
Here are the capital value predictions for major cities in the second half (H2) of 2025.
City | Capital value growth |
Tokyo | +6 to 7.9 percent |
Seoul | +6 to 7.9 percent |
Cape Town | +6 to 7.9 percent |
Dubai | +4 to 5.9 percent |
Sydney | +4 to 5.9 percent |
Lisbon | +4 to 5.9 percent |
Mumbai | +2 to 3.9 percent |
Madrid | +2 to 3.9 percent |
Amsterdam | +2 to 3.9 percent |
Source: Savills Research
Lisbon has a strong lifestyle appeal, just as much as other popular cities like Sydney, Amsterdam, and Cape Town. The capital of Portugal even managed to rank fourth with the highest potential for appreciation for high-end properties at the start of 2025. So, there is no reason the interest in the city will stop any time soon.
How can Goldcrest help you?
At Goldcrest, we have a team of buyer’s agents who can provide a detailed market analysis and keep up with the latest property trends. We can help you search for properties, find apartments to rent, and offer property management services.
Contact us today if you are looking for luxury properties in Portugal. We can scour the market, so you don’t have to.
