Barbara Queiróz Updated: February 12, 2026
The Lisbon real estate market has now positioned itself as a prime investment hub. In 2026, we can see dynamic changes to the market, with central prices reaching record highs and emerging neighborhoods such as Marvila and Estrela moving more firmly onto the property stage.
Lisbon is the most expensive city in Portugal, but it offers a wide range of investment and lifestyle benefits. Whether you are moving to relocate or are an investor seeking high returns on investment (ROI) that range from 5.2-7.8 percent, navigating the complexities of the market requires guidance and data.
As the first buyer’s agent in Portugal, we know the market’s nuances. In this guide, we provide 2026 property prices, key market trends, demand/supply dynamics, and the neighborhoods offering the best value right now.
We’ll cover:
Lisbon Real Estate Key Takeaways
- Record prices: Lisbon remains the most expensive city in Portugal for real estate, with prices in Lisbon City averaging €6,934 per square meter.
- Supply/demand dynamics: High demand and limited supply have driven property prices up in the past few years.
- 2026 & 2027 predictions: The next two years are likely to see more sustainable growth and stabilization.
- Resilient investment outlook: ROI range of 5.2-7.8 percent, with emerging neighborhoods such as Marvila and Alcântara expected to be prized locations in 2026.
An Overview of Lisbon's Real Estate Market 2026
Lisbon has proved to be a frontrunner among real estate markets worldwide, with key trends for 2026 evolving around luxury real estate, sustainability, and emerging neighborhoods moving into the spotlight.
Lisbon was named one of the top ten cities to watch for real estate investment in Europe in 2025, according to the Emerging Trends in Real Estate Report.
The current state of the real estate market in Lisbon, Portugal
If you are considering real estate investments in Lisbon, the one aspect that continues to define the current state of the market is demand currently outstripping supply.
However, the city remains relatively affordable when compared to other capital cities in Europe, while still providing strong capital appreciation and ROI (5.2-7.8 percent). If you buy outside the city center or in up-and-coming neighborhoods, you will find the prices are even lower.
Many Lisbon real estate market reports have identified that the luxury market in Lisbon is also in the spotlight in 2026, with Lisbon ranked fourth among European cities with the greatest potential for appreciation in 2025.
Key real estate trends in Lisbon
Europe’s hottest real estate market, Lisbon, is ever evolving. Here are the key Lisbon property trends driving growth right now, and making houses for sale in Lisbon, Portugal, so attractive.
Economic growth in Portugal in 2026
GDP has gradually and steadily increased over recent years, and is expected to grow by 2.2 percent in 2026 and 2.1 percent in 2027, according to the European Commission, projected to perform better than countries such as Germany and France.
Tourism boom
Recent trends show that Lisbon and Porto will remain as cornerstone tourist destinations in Europe, with both cities frequently featuring in travel features and recommendations for the best getaways in Europe in 2026.
In 2026, tourism in Portugal is projected to experience 12 percent growth, according to independent investment group ABKS, with much of this tourism focused on Lisbon. The Portuguese capital was also named the World’s Leading City Break Destination in the World Travel Awards 2024, cementing its top status as a sought-after location worldwide.
Lifestyle in Lisbon
Lisbon is famous for its laid-back lifestyle, safety, modern conveniences, and delicious food, having been crowned Europe’s Best Culinary City Destination for 2024. It boasts a great year-round climate with tons of sunny days, as well as its proximity to beautiful beaches, which are popular with surfers along the Lisbon coast.
Portugal also has one of the highest English proficiency levels in Europe and around the world. It is conveniently located in Western Europe, with frequent flights to the rest of the continent, as well as to the Americas and the rest of the world.
Government incentives
- VAT reduction: Portugal has approved a 6 percent VAT rate (reduced from 23 percent) for the construction and renovation of homes sold under €648,022 that are to be used as permanent residence.
- Rental tax: Tax reductions on rental income have dropped from 25 percent to 10 percent for moderate rent contracts (capped at landlords who rent out their property at €2,300 per month).
- Residency options: The Golden Visa (residency by investment), D7 Visa (for passive income holders), and Digital Nomad Visa (for remote workers) are amongst the accessible residency options for non-EU nationals to relocate to Portugal.
Restricted supply of real estate stock
Another factor impacting real estate prices in 2026 is a restricted supply of housing in the city center. Lisbon is a small and concentrated city situated next to a river. In addition, the Câmara municipal (the city regulator) limits construction in order to maintain the character of the city, and as a result, new construction projects in the historic center are virtually impossible.
Rehabilitation of older buildings is preferred and is usually the only solution for those looking to make a real estate investment in a central location.
For those looking to invest in new-build real estate in Lisbon, Portugal, there are specific areas to consider where new construction is permitted. One such area is Parque das Nações, which is particularly popular with foreign investors. Others include Marvila, an up-and-coming creative hub in the east of Lisbon, and Alcântara, which is set to have a new metro station by 2028.
The Simplex Urbanístico 2026 plan is set to simplify the process with PEPU (Electronic Platform for Urban Planning Procedures), integrating various databases and making it easier for investments in the city. In short, simplifying urban planning licensing.
Lisbon real estate market forecast for 2026-2027
Lisbon’s property market in 2026 is transitioning from booming property prices to a phase of more mature, sustainable growth. Prices are predicted to rise more moderately in 2026 and 2027 compared with the past few years, which saw a price increase of more than 115 percent between 2017 and 2025, with property prices rising by more than €2,636 per square meter during this period.
Prices in central districts such as Avenida da Liberdade, Príncipe Real, and Lapa already average close to €7,000 per square meter, reflecting both the scarcity of supply and continued international demand. These prized parts of the city are ideal for buyers seeking luxury real estate and are going to continue to be popular amongst international buyers in 2026.
However, the real story is with neighborhoods such as Arroios, Penha de França, and Beato, which are now major growth areas, alongside the emerging neighborhoods of Marvila and Alcântara.
Commercial investment is also surging, with hospitality and office spaces in Lisbon benefiting from tourism growth and international companies expanding operations. Investment volumes in commercial real estate are predicted to reach approximately €2.4 billion (- 11% YoY), according to CBRE’s Real Estate Market Outlook Portugal 2026.
All things considered, we find Portugal’s real estate market throughout 2026-2027 remains an eye-catcher for investors seeking a high-growth city, with ROI averaging 5.2 to 7.8 percent.
Lisbon Real Estate Prices and Market Trends
The average asking price for property in Lisbon City is €6,934 per square meter, while if you look at the Lisbon Metropolitan Area, prices stand at €4,395 per square meter. Note that, when it comes to Lisbon real estate for sale, the transaction price can be significantly lower than this, as sellers want to sell their property by a fixed date.
In the tables below, you can see the Lisbon real estate prices in various districts.
Lisbon Councils Housing Prices- Average Asking Property Prices per m²
Property prices in Lisbon are listed below.
Lisbon Neighborhood | Average Price Per Square Meter |
Ajuda | €5,366 |
Alcântara | €6,803 |
Beato | €4,896 |
Benfica | €5,123 |
Campolide | €7,125 |
Carnide | €4,784 |
Lumiar | €5,785 |
Marvila | €7,098 |
Olivais | €5,697 |
São Domingos de Benfica | €6,160 |
Alvalade | €6,235 |
Areeiro | €6,742 |
Arroios | €6,244 |
Avenidas Novas | €8,377 |
Belém | €6,757 |
Campo do Ourique | €6,974 |
Estrela | €7,694 |
Misericórdia | €7,895 |
Parque das Nações | €8,517 |
Penha de França | €4,644 |
Santa Clara | €3,977 |
Santa Maria Maior | €7,321 |
Santo António | €9,051 |
São Vicente | €6,401 |
Cascais | €7,260 |
Cascais and Estoril | €8,389 |
Carcavelos and Parede | €7,365 |
Alcabideche | €5,487 |
São Domingos de Rana | €3,841 |
Oeiras | €5,245 |
Oeiras e S Julião da barra e P Arcos | €5,934 |
Algés e Linda-a-Velha | €5,241 |
Porto Salvo | €3,956 |
Camaxide e Queijas | €4,874 |
Barcarena | €4,157 |
Ready to take the next step and find your dream home? See our ultimate guide to buying property in Lisbon!
Where to Buy Real Estate, Lisbon, Portugal: City Guide
The Portugal real estate market has solidified itself as a strong contender in the property game, with the capital, Lisbon, the most desirable area to purchase property.
If you’re considering buying Lisbon real estate for sale, then you are likely wondering what the best neighborhoods in Lisbon are. Lisbon real estate has become more popular over the last ten years, with both investors and expats trading up for a sunnier and better quality of life in Portugal.
As far as places to live in Lisbon go, prices vary depending on the area of Lisbon you are interested in. We will take you through the main areas of Lisbon and what you can expect to pay for real estate in each of them.
You can also check our guide to the cost of living in Lisbon, so you can calculate your expenses.
Real estate in Bairro Alto
A privileged location in downtown Lisbon, Bairro Alto, is one of the most popular places you can choose when purchasing Lisbon real estate as an investor. Bairro Alto is in a central location, and as far as Lisbon areas go, it’s in the mid to high range of prices for buying Lisbon, Portugal, real estate.
Bairro Alto is a key tourist zone and neighbors Baixa Chiado, a high-end shopping district. Downtown Lisbon is known to attract investments in rental property.
Why invest in Bairro Alto?
Real estate in Baixa Chiado and Bairro Alto is highly prized and in great demand. The area is popular with tourists and international exchange students due to its central location and proximity to Lisbon’s premier nightlife venues. While perhaps not the best place to relocate to, this part of Lisbon is an excellent option for investors.
Average price
The average asking price for real estate in the Lisbon neighborhood of Bairro Alto (in the Misericórdia neighborhood) is €7,895 per square meter.
Real estate in Lapa and Santos
Lapa and Santos also offer highly attractive investment opportunities, both in the tourist short-term rental market and in long-term rental possibilities, as the neighborhood has high demand from an affluent local renters’ market.
If you’re thinking of relocating to Lisbon and are looking for a quieter neighborhood or are looking to move with a family, consider Lapa and Santos. Both have fabulous parks and cafes, and there are many schools that surround the area.
Why invest in Lapa and Santos?
This emerging neighborhood has a lot to offer for families, with many charming parks to visit. Investors will find options for long-term rentals as young professionals often opt for this part of the city.
Average price
The average asking price for real estate in Lapa and Santos (both in the Estrela neighborhood) is €7,694 per square meter.
Real estate in Avenidas Novas
Avenidas Novas is not the main touristic area of town but is still a very popular choice for real estate investment in Lisbon as it is a bustling area where locals, expats, and families live and work in the city.
It’s a green part of Lisbon, with avenues lined with trees and beautiful parks never too far away. The spacious neighborhood is also a business hub, with many company offices and coworking spaces, so you can expect to rent long-term to professionals.
Why invest in Avenidas Novas?
The buildings in the Avenidas Novas area are generally newer compared to other central areas, and they also tend to offer greater space to buyers. Many vibrant restaurants have also recently opened in this part of the city, which blends residential streets with happening bars and charming cafés.
Average price
The average asking price for real estate in Avenidas Novas is €8,377 per square meter.
Real estate in Intendente and Mouraria
Intendente and Mouraria are two up-and-coming neighborhoods in Lisbon and, therefore, present an attractive opportunity to investors looking to cash in return on a sale in a few years’ time. The prices in this area are quite reasonable considering how well located the area is in Lisbon. These two adjacent, historic neighborhoods in Lisbon are primed for investment.
Intendente is known for its trendy, bohemian atmosphere, with hip cafes, coworking spaces, and trendy boutiques. Meanwhile, Mouraria – characterized by laundry hanging from the windows, strains of Fado music circling around, and street art – is undergoing a wide-reaching rehabilitation to attract new investors and residents.
Why invest in Intendente and Mouraria?
This part of the city presents an opportunity for investors. There is a short-term rental market for tourists as well as a long-term market for locals and young professionals in this hip part of town.
Average price
The average asking price for real estate in Intendente (in the Arroios neighborhood) is €6,244 per square meter, while the average price in Mouraria (in the Santa Maria Maior neighborhood) is €7,321 per square meter.
You can see more about this part of the city in our Intendente real estate guide.
Also, our article on Anjos real estate provides information on a charming, multi-cultural part of the city just to the north of Intendente, where young professionals rub shoulders with locals and where there are countless restaurants and bars to frequent.
Real estate in Campo de Ourique
Campo de Ourique is a sought-after and quiet part of town that presents more opportunities in the long-term rental market. It’s also an ideal neighborhood to relocate to with family, considering the green spaces, indoor food hall, and plethora of cafes and restaurants. The Mercado de Campo de Ourique (Campo de Ourique market) is fabulous, and the area has a very authentic, lived-in vibe.
Why invest in Campo de Ourique?
Campo de Ourique is a residential neighborhood, perfect for tenants and homebuyers looking for a quieter and more relaxed living environment while still being relatively close to the city center.
Average price
The average asking price of real estate in Campo de Ourique is €6,974 per square meter.
You can read more about this area in our Campo de Ourique real estate guide.
Real estate in Alfama and Graça
Graça and Alfama are the oldest parts of town, situated high up with panoramic views of the city and the Tagus River from the famous miradouro look-out points. It’s no wonder that these neighborhoods are the top choice for tourists visiting Lisbon. Here, you can also find land for sale in Lisbon, which can be beneficial if you are looking to build a property from scratch.
Why invest in Alfama and Graça?
Arguably the most authentic part of Lisbon, the winding cobbled streets and yellow trams meandering past present a clear picture of the past here. You also have stunning views of Lisbon stretched before you.
Average price
Average asking prices for Alfama and Graça (in the São Vicente neighborhood) stand at €6,401 per square meter.
You can read more about this area in our Alfama real estate guide and Graça real estate guide.
Real estate in Belém, Ajuda, and Restelo
These parts of town in the west of the city will have a better value per square meter, as they aren’t so centrally located in the main tourist hot-spot locations. However, for families looking to move to Lisbon, these areas have plenty of space and are still very pretty and happening neighborhoods to live in.
Why invest in Belém, Ajuda, and Restelo?
Investing in Belém, Ajuda, and Restelo can be attractive due to their historical significance, cultural attractions, and potential for urban regeneration projects. This part of Lisbon offers a diverse mix of historic charm and modern amenities, making them appealing for real estate and tourism investments, with the prospect of long-term growth. You are also a little outside the city’s center, so there are more spacious properties available here.
Average price
In Ajuda, the average asking price of real estate is €5,366 per square meter, while in Belém and Restelo, it is a little bit more expensive at €6,757 per square meter.
Real estate in Parque das Nações
Parque das Nações is a re-developed, quieter part of town that presents interesting opportunities for investors with great growth potential on the investment. There are striking contemporary buildings here, and the area lines the waterfront of the Tagus River. It’s also a spacious place to move to with a family.
Why invest in Parque das Naçōes?
Investing in Parque das Nações, Lisbon, offers a modern waterfront environment with amenities like the Oceanarium and Vasco da Gama shopping center.
Sightly reminiscent of Canary Wharf in London, its appeal lies in contemporary architecture, cultural venues, and a vibrant atmosphere, with top restaurants that spill onto the streets by the river and attract residents and tourists.
When seeking Lisbon real estate market investment potential, Parque das Nações stands out due to ongoing developments and great accessibility.
Average price
In Parque das Nações, the average asking price of real estate is €8,517 per square meter. You can find out more about this neighborhood in our article on Parque das Nações Real Estate.
Note that there are many other prospective areas in the city that we have not covered in this article. This is simply because there are too many to mention. Each neighborhood will have its unique characteristics and property types, so it’s important to do your own research. You can read our ultimate guide to the best neighborhoods in Lisbon for more options.
Real estate alternatives to the center of Lisbon
There are many interesting alternatives to investing in the center of Lisbon, which can make a far better investment depending on your requirements, such as if you are looking for a beach house, to live in the countryside, or close to the Lisbon coast.
Across the Tejo River from Lisbon, Almada, Portugal, real estate offers more affordable real estate. Plus, you’ll be able to enjoy stunning views of Lisbon.
Cascais
Cascais is a seaside town a short distance from the center of Lisbon, with excellent public transportation links to the center.
Cascais boasts spacious family homes and luxurious properties for high-net-worth investors.
It is more family-friendly than the center of the city, with greater open space, beautiful beaches, and also has a number of good international schools, such as King’s College School.
Setubal
Setubal Portugal real estate is another fantastic option. Setúbal is a neighboring city located to the south of Lisbon on the coast. It takes about an hour to drive there from Lisbon’s center, making it popular with those looking for more affordable real estate options.
Setubal is also very close to some beautiful beaches, with very good international schools, making it a great option for families. It is close to the beautiful Sesimbra and the Arrabida Natural Park too.
To find real estate in or around Setúbal, it can be a good idea to get in touch with a real estate agent in Setúbal to assist you with the purchase and help you discover your dream home.
Types of Real Estate Properties Available in Lisbon
Buying a house in Lisbon, you will find a wide array of real estate options. Lisbon has several different property types, from hip studios and spacious modern apartments with a private terrace to four-bedroom homes with a swimming pool.
Remember to do your research before purchasing. A quick online search for “homes for sale Lisbon Portugal” or “Lisbon apartments for sale” will help to narrow down your search. If you have specific needs, seeking expert help from professionals like a buyer’s agent is the best way to find what you’re looking for.
Residential properties for sale in Lisbon
When it comes to residential houses for sale, Lisbon offers everything from modern apartments to luxurious waterfront houses for sale in Lisbon, Portugal.
Some of the most common residential properties are listed below.
- Apartments and condos
- Townhouses
- Villas
- Country homes
Commercial properties for sale in Lisbon
Some of the most popular investment opportunities for Lisbon commercial real estate are:
- Business offices
- Retail spaces
- Warehouses
- Tourism real estate, like boutique hotels
- Coworking spaces
Goldcrest: How We Can Help
Goldcrest is a buyer’s agent that is based in Lisbon, Porto, and the Algarve. We provide expert, impartial advice on how to buy real estate in Portugal for sale. From scouting out the perfect Lisbon real estate for sale and guiding you through to property acquisition, we have you covered throughout the entire process and can help you achieve your real estate goals.
If you are looking to find your dream home in Lisbon, don’t hesitate to get in touch.
Why choose Goldcrest?
- Local knowledge: With offices located across Portugal, our presence nationwide allows us to assist you personally across the country.
- Independent service: As an independent buying agent, we do not represent any development or project. Our service is entirely tailored toward each individual client, providing you with everything you need to secure the perfect property at the best possible price. As an impartial advisor on the market, we work solely on behalf of our clients and provide a service tailored to their needs and requirements.
- Streamlined process: Our real estate agents speak English and Portuguese, and our service is completely focused on providing you with a hassle-free buying experience, saving you time.
- Experienced team: Our expert real estate team has a vast local knowledge of the real estate market. We have cutting-edge technology and metasearch tools at our disposal to provide full market coverage, ensuring the best investment choices and negotiated prices.
- Network of partners: Our network of contacts includes lawyers, Portugal property management services, builders, architects, designers, and landscape gardeners, again saving you time and hassle by providing you with trusted experts in their field of work. >
Frequently Asked Questions about Real Estate in Lisbon
Why is real estate in Lisbon so expensive at the moment?
In Lisbon, demand for real estate exceeds supply, driving prices up, especially among expats. Investing now can lead to capital appreciation as prices continue to rise, although prices are set to be more stable in 2026 and 2027 compared with previous years. More affordable options are available in neighborhoods like Penha de França or outside the city center.
Where are the best areas to buy Lisbon Portugal real estate?
Lisbon has diverse neighborhoods for real estate, each with its own unique characteristics. Baixa, Lapa, and Campo De Ourique are particularly sought after, offering good living conditions and promising rental yields for both long and short-term rentals. Estrela is highlighted as an ideal area for families moving to the capital.
Is there a real estate bubble in Lisbon?
The increase in real estate prices in Lisbon is attributed to high demand, limited supply, the city’s popularity with expats and investors, and a strong economic recovery. However, there is no real estate bubble currently, as banks continue to lend and new developments are ongoing. Savvy buyers can still find good deals in emerging neighborhoods or areas outside the city center.
What is the current state of Lisbon's real estate market?
The real estate market in Lisbon is strong at the moment, with continued high demand over the past few years, which is reflected in property prices. Lisbon real estate market analysis shows that 2026 is likely to continue to experience price growth but also a move towards more stable market conditions.
What are the future predictions for Lisbon’s real estate market?
Future Lisbon real estate market predictions include Portugal a move from explosive growth towards more sustainable, moderate capital appreciation. Demand is expected to continue to rise, while government initiatives to boost supply are underway. Prime areas, such as Chiado, Lapa, and Avenida da Liberdade will remain popular for luxury buyers.
What types of real estate properties are available in Lisbon?
In Lisbon, Portugal, there is a diverse range of properties available, including single-family homes, modern apartments, and luxury villas. It’s important to clarify your preferences, such as privacy or specific features like a pool or historic charm. Conducting an online search for “homes for sale in Lisbon” provides a good overview, and contacting a buyer’s agent is recommended for access to all available properties. Additionally, Lisbon offers various commercial and tourist properties, including serviced apartments and hotel projects.
What is the average price of a home in Lisbon, Portugal?
The average asking price for real estate in Lisbon City is €6,934 per square meter, while if you look at the Lisbon Metropolitan Area, prices stand at €4,935 per square meter. Prices generally decrease as you move away from the city’s center.
How does the buying process work for real estate in Lisbon?
The buying process in Lisbon involves finding the perfect real estate, making an offer, negotiating terms, conducting due diligence, signing a preliminary contract, and completing and signing the final deed at a Notary.
