Updated: June 7, 2024


Lisbon’s real estate market has moved from strength to strength over the years, becoming the home of expats from all walks of life. With vibrant neighborhoods, prime investment opportunities, and a high quality of life, Portugal’s capital has it all.

In this guide, we’ll arm you with all you need to know about Lisbon real estate. We’ll also provide key information on the best neighborhoods to consider and how to get the highest returns on your investment.

An Overview of Lisbon's Real Estate Market

alfama lisbon city center

Portugal real estate has moved from strength to strength over the years, and the bright lights of Lisbon are a real attraction for countless expats and families.

The captivating Portuguese capital city, Lisbon, has cemented itself as one of the most sought-after cities for real estate investments in the world. Lisbon City experienced a growth rate of 50 percent between 2017 and 2022, and for 2024, Lisbon is ranked in the top eight cities with the best real estate prospects in Europe.

Whether you are looking to relocate to Portugal, buy-to-rent, or have a nice holiday home in a stunning European capital, Lisbon is an excellent place to buy property. There are also no restrictions on foreign property ownership, making it easy to invest in the real estate market here.

The simple fact is that Lisbon has something for everyone, whether you are looking for a modern apartment, waterfront property, or spacious family home. Lisbon has all the charm of a picturesque European city, merging traditional charm with modern amenities. With a high quality of life and great potential for high returns on investment, Lisbon is a favorite for both investors and expats.



The current state of the real estate market in Lisbon, Portugal

If there is one aspect of Lisbon real estate that defines the current state of the market, it’s that demand is currently outstripping supply – and this has been the case for a while. This presents an exciting opportunity for buyers, where there is potential to secure a nice return on your investment, whether through buying to rent or through capital appreciation.

While increasing demand has boosted property prices, you will still find properties at reasonable prices if you buy outside the city center or in up-and-coming neighborhoods.

Key property trends in Lisbon

Everyone’s talking about Europe’s hottest real estate market, Lisbon. But what happened to make property in Portugal’s capital so interesting to investors? There are many different factors that contributed to the rise in Lisbon real estate, from economic growth to the rise in the tourism sector, as well as an increase in short-term rentals. So, let’s take a look at a few of these factors and the key property trends in Lisbon.

Economic growth

The Portuguese economy has bounced back after a few difficult years following the financial crisis, with stable growth. GDP has gradually and steadily increased over recent years and is likely to continue (after the COVID-19-related blip in 2020), particularly with the rising number of startups and tech companies in the capital. Web Summit, the largest tech “festival” in the world, relocated to Lisbon in 2016, cementing the city as one of the key innovation hubs in Europe. This has led to remote workers and young professionals looking to secure property in Portugal’s capital.

Tourism boom

The tourism sector has always played a big part in the Portuguese economy, though this has largely been focused on the south of the country, particularly the Algarve.

However, recent trends mean that Lisbon and Porto have become increasingly popular tourist destinations, with both cities frequently in travel features and topping rankings for the best getaways in Europe.

The rise in short-term rental platforms, such as Airbnb, has contributed to the ease of home Lisbon, Portugal, real estate rentals, and an increase in returns on property investments.


The Portuguese capital has become increasingly popular in the past few years, not only as a tourist destination but also as a base for startups and entrepreneurs who are drawn in by the low cost of living and high quality of life. Lisbon is famous for its delicious food and good year-round climate, 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. 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.

It is, therefore, unsurprising that record levels of international citizens are choosing to make Portugal their home and secure a property in Lisbon.

Government incentives

Portugal’s residency by investment scheme, known as the Portugal Golden Visa, has, in the past, been highly successful in bringing foreign investment to the country and adding value to the housing market.

Note that, as of 7 October 2023, it is no longer possible to invest in real estate and qualify for the Portugal Golden Visa. The Portugal Golden Visa is still open to investors, with several investment options, such as investment funds, still on the table.

Restricted supply of real estate stock

Another factor impacting real estate prices 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 constructions 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.

In the historic center of Lisbon, the restricted supply of housing explains the rise in real estate prices.

Property Prices in Lisbon

When it comes to Lisbon real estate prices, the average asking price for property in Lisbon City is €6,009 per m², while if you look at the Lisbon Metropolitan Area, prices stand at €4,061 per m². Note that, when it comes to Lisbon property 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 property prices in the various Lisbon districts.

Lisbon Councils – Average Asking Price €/sqm 2023

Lisbon City


Santo Antônio


Parque das Nações






Avenidas Novas






Santa Maria Maior




Campo de Ourique










São Vicente


São Domingos de Benfica














Penha de França


Santa Clara




Cascais e Estoril


Carcavelos e Parede




S Domingos de Rana




Oeiras e S Julião da barra e P Arcos


Algés e Linda-a-Velha


Porto Salvo


Camaxide e Queijas




Investment Opportunities: Lisbon Portugal Real Estate

If you are looking into buying real estate as an investment opportunity, it can be a very lucrative venture. While short-term rentals typically provide a better income, there is often less hassle with long-term rentals. For example, you have more consistent tenants in comparison with short-term renters, who are usually only in Lisbon for a few days.

You can check out our article, Buy-to-Let, for information on how to buy a property with the intention of renting it out. Rent prices have been increasing in recent years, and you should be able to secure a strong return on your investment in the long run.

Rental yields in Lisbon

While the Lisbon City average for rental yields is 5.2 percent, some neighborhoods will prove to be a better investment option than others. Also, if you look at the Lisbon Metropolitan Area, rental yields were higher, standing at 6.7 percent. You can see the rental yields for the Metropolitan Area and for Lisbon neighborhoods below. 

Rental Yields Lisbon Metropolitan Area


Rental Yields (%)

Metropolitan Area Lisbon


Lisbon City












Vila Franca de Xira
















Rental Yields Lisbon neighborhoods


Rental Yields (%)

Lisbon City














São Domingos de Benfica








Avenidas Novas


Campo de Ourique






Parque das Nações


Penha de França


Sta Maria Maior


Sto António


São Vicente


Why buy a house in Lisbon?

As mentioned, over the past few years, purchasing property in Lisbon has become hugely popular with investors from all over the world, as well as those who move to the city to make it their home. As the capital city of Portugal, the municipal area is a major tourist hub for the country and the rest of Europe. Additionally, the picturesque city has a buzzing pulse and rich cultural history.

Here, we’ll delve into key reasons why the bustling Portuguese capital could be the perfect place for you to purchase property.

An investor’s paradise

Portugal’s economy has experienced many trials and tribulations over the years. However, the Portuguese real estate market seems to be moving from strength to strength and has experienced tremendous growth in the last few years.

Lisbon’s real estate sector has benefitted greatly from new investment policies that have transformed the city into an urban paradise for businesses and residents alike. Foreign investments, urban renewal projects, and the rise of tech, startups, and key businesses in the city have coincided to create an investor’s paradise.

Continuous growth

Lisbon has increased its competitiveness with other cities in Europe, including London, thanks to its transformative policies, for example, by investing heavily in startups and attracting entrepreneurs to its shores.

Other examples include Volkswagen and Mercedes-Benz opening tech hubs in the city, Web summit, the biggest tech festival in the world relocating to Lisbon in 2016, and countless international companies setting up shop in the capital and other parts of Portugal. This has bolstered the real estate market in Lisbon.

Where to Buy Real Estate in Lisbon, Portugal: City Guide

If you’re considering buying Lisbon real estate, then you are likely wondering what the best neighborhoods in Lisbon are. Lisbon real estate has become more popular over the last ten years, 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 do have quite a range 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.


GC-ICON-95Real estate in Bairro Alto

A privileged location in downtown Lisbon, Bairro Alto is one of the most popular places you can choose when purchasing property 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 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 short-term holiday rentals.

Pros and cons of Bairro Alto:

• Historic charm
• Touristic hotspot and rental potential:
• Ideal location, strategically placed in the city center
• Excellent transportation links

• High initial investment and high property prices
• Touristic and can be prone to crowds and noise

Why invest in Bairro Alto?

Real estate in Baixa Chiado and Bairo Alto are 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 property in the Lisbon neighborhood of Bairro Alto (in the Misericórdia neighborhood) is €7,021 per m².


GC-ICON-95Real 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.

Pros and cons of Lapa and Santos:

• A quieter part of the city, perfect for families
• Proximity to fabulous beaches
• Up and coming areas, potential for high capital appreciation

• A little outside the hustle and bustle of the center
• No metro, but good bus links

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 property in Lapa and Santos (both in the Estrela neighborhood) is €7,231 per m².


GC-ICON-95Real 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. You can expect to rent long-term to students or professionals.

Pros and cons of Avenidas Novas:

• Vibrant part of the city
• Excellent restaurants, charming cafés, and bars
•  Popular with expats
• Excellent public transportation
• Many green parks

• Architecture is not as spectacular as other parts of the city

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 property in Avenidas Novas is €7,126 per m².


GC-ICON-95Real 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.

Pros and cons of Intendente and Mouraria:

• Multicultural scene
• More affordable properties
• Miradouros (viewpoints) with stunning views of Lisbon

• Limited green spaces
• Perhaps not best suited for families, not many international schools in the direct vicinity

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 property in Intendente (in the Arroios neighborhood) is €5,885 per m², while the average price in Mouraria (in the Santa Maria Maior neighborhood) is €6,700 per m².

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, where young professionals rub shoulders with locals and where there are countless restaurants and bars to frequent.


GC-ICON-95Real 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.

Pros and cons of Intendente and Campo de Ourique:

Quiet area with spacious properties
• Many green parks, excellent restaurants, and boutique shops
• Perfect part of Lisbon for families
• Proximity to international schools

No metro but good bus links
• Limited nightlife

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 property in Campo de Ourique is €6,367 per m².

You can read more about this area in our Campo de Ourique real estate guide.


GC-ICON-95Real 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. There have, however, been certain rules in place that have prevented the initiation of new Airbnb contracts in this part of town, so from a purely short-term holiday rental investment standpoint, make sure you double-check this before buying property in this part of the city.

Pros and cons of Alfama and Graça

• Historic architecture and charming cobbled streets
• Incredible restaurants and local food
• Fado houses, plus Miradouros (viewpoints) with captivating views of Lisbon

• Alfama can get busy with tourists, while Graça presents a quieter alternative.
• Steep hills
• There is no metro, but the iconic trams and the Santa Justa elevator (Elevador Santa Justa) can get you up and down the hills.

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 €5,018 per m².

You can read more about this area in our Alfama real estate guide and Graça real estate guide.

Book a complimentary call to discuss your options with our team of experts today.

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GC-ICON-95Real 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.

Pros and cons of Belém, Ajuda, and Restelo:

• Historical landmarks, such as Jerónimos Monastery and Belém Tower
• Spacious properties
• Green parks
• Close to both Lisbon and beautiful beaches in Carcavelos and Cascais

• Not so central, but well connected by public transport
• Belém can be busy with tourists in peak tourist season

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 development. This part of Lisbon offers a 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 center, so there are more spacious properties available here.

Average price

In Ajuda, the average asking price of property is €5,043 per m², while in Belém and Restelo, it is a little bit more expensive at €6,548 per m².


GC-ICON-95Real 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.

Pros and cons of Parque das Naçōes:

• Some of the best modern restaurants in Lisbon
• Spectacular views of the Tagus River
• Modern architecture

• Not so central, but well connected by public transport
• Limited historical character

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. Ongoing development and accessibility contribute to the neighborhood’s investment potential.

Average price

In Parque das Nações, the average asking price of property is €7,728 per m².

You can find out more about this neighborhood in our article on Parque das Nações Real Estate.


GC-ICON-95Real estate Lisbon Portugal: Lisbon neighborhoods

With so many great investment opportunities, the real challenge as a purchaser is narrowing your search.

Note that there are many other prospective areas in the city that we have not run over 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. Other top options include Príncipe Real, Marvila, Areeiro, Alvalade, and Alcântara.

You can check out the articles below for information on other dynamic neighborhoods:
A Guide to Real Estate in Marvila, Lisbon
Real Estate in Príncipe Real
Areeiro Lisbon Real Estate: Neighborhood Guide

Close to Belém, Oeiras Portugal real estate also provides excellent property options, many of which have charming views of the River Tejo. Just north of Oeiras, Leceia, Portugal, real estate provides buyers with all the perks of being close to the city but with a community feel.


GC-ICON-95Real 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 provides more affordable properties. Plus, you’ll be able to enjoy stunning views of Lisbon.


Cascais is a seaside town a short distance from the center of Lisbon, with excellent public transportation links to the center. It is more family-friendly than the center of the city, with greater open space, and also has a number of good international schools.


Setubal is a neighboring city located to the south of Lisbon on the coast. It takes around an hour to drive there from the center, and as a result, it is popular with those looking for more inexpensive real estate options.


Types of Lisbon Real Estate for Sale

Buying a house in Portugal, you will find a wide array of property 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. The city is well known for its Pombaline buildings, charming balconies, and quaint townhouses, with a wide variety of properties. In this section, we’ll delve into the main real estate opions in Lisbon and the main property types you can find in the city.

Real estate options in Lisbon

Like in any city, there are a few options to consider depending on whether you are looking to buy a family home or make a property investment. This will mean choosing between:
• Used residential property
• New residential property

Investors may also want to consider the following options:
• Building for investment
• Commercial properties
• Land for construction

Do your research, as a quick online search for “houses for sale Lisbon Portugal” or “buying real estate Lisbon” will provide you with a nice overview of what’s on offer. Note that a new development may be the safer option, and for older Lisbon properties, make sure that you conduct thorough due diligence checks.

You can invest in the following property types: Whether you are looking for a new development or an older property, you should be able to find it in the city.

Residential properties

When it comes to residential properties, you’ll find everything from modern apartments to luxurious waterfront properties. Some of the most common are listed below.


If you’re looking for a modern apartment with a pool and riverside views or a smaller property in an up-and-coming area, you’ll find several options to consider.


Particularly on the Lisbon Coast stretching to Cascais, you’ll find many modern villas on the market. You’ll be able to enjoy the best of both worlds: The beautiful beaches that hug the coast and the bright lights of the capital city.

Country homes

If you are looking for a country house for sale in Lisbon, Portugal, you’ll find spacious homes a little outside the city whilst still being within striking distance of Lisbon. Locations such as Santarém, just over an hour’s drive away, could be an excellent option to consider.

Luxury real estate Lisbon

There is an array of luxurious real estate in Lisbon. From beautiful waterfront properties to modern apartments with stunning views of the city, Lisbon definitely delivers for luxury buyers. Many properties come with private pools, gyms, and other excellent features.

Commercial properties

Some of the most popular investment opportunities for Lisbon commercial real estate are listed below.


Officers provide stable rental income and potential long-term capital appreciation.

Retail spaces

When it comes to commercial properties, investing in retail spaces offers steady income from established businesses and potential growth in prime locations.


Warehouses provide lucrative opportunities, and construction costs are generally much lower. In certain areas in Lisbon, such as Marvila, many warehouses are being renovated into boutique craft beer bars and hip restaurants, for example.

Tourism real estate

Given the booming tourism sector in Lisbon, which just seems to be going from strength to strength, these areas offer options to invest in tourism real estate. From hotel projects to serviced apartments, there are several investment options on the table.

Other projects

Aside from investments in residential and commercial properties, in addition to tourist real estate, there are other options on the table. Lisbon has seen a rise in digital nomads and tech companies relocating to the Portuguese capital city in recent years. This has paved the way for investment opportunities in co-working or even co-living spaces. This trend is likely to continue to grow in the future.

Alongside this, there has been increased interest, from developers to investors, in investing in green real estate investment opportunities. This is another segment of the market that will likely continue to take off in the coming years.

Lifestyle in Lisbon

how to find a property in lisbonSo, what’s life in Lisbon like? Below are a few of the top reasons why living in Lisbon has drawn in expats from across the world.

  • A rich culture: Lisbon boasts a vibrant and diverse cultural scene, blending traditional Portuguese heritage with modern influences. The city is a melting pot of art, music, and literature, with numerous galleries, theaters, and cultural events throughout the year.
  • Relaxed pace of life: Lisbon is known for its laid-back and relaxed lifestyle. Residents and visitors alike appreciate the leisurely pace of life, where people take the time to enjoy a cup of coffee at a local café, stroll through historic neighborhoods, or unwind by the scenic waterfront.
  • Gastronomic delights: The city’s culinary scene is a reflection of its rich history and maritime influences. Lisbon is famous for its delicious seafood, pastries like Pastel de Nata, and traditional Portuguese dishes. The local markets, such as Mercado da Ribeira, offer a diverse array of fresh produce and regional specialties.
  • Coastal living: Lisbon’s location along the Atlantic coast provides residents with easy access to beautiful beaches. The nearby coastal areas, such as Cascais and Estoril, are popular destinations for those seeking sun, sea, and water activities, offering a perfect balance between city life and coastal relaxation.

Practical Information on Lisbon

It’s good to have some practical information about living in Lisbon, such as the climate, international schools in the city, and healthcare options. In this section, we provide you with key aspects to be aware of.

Lisbon statistics

Lisbon boasts a high quality of life, low cost of living, excellent healthcare and education opportunities, and is the seventh safest country in the world, according to the Global Peace Index in 2023.

Here are some key statistics about Lisbon:

  • Lisbon population: 2.9 million
  • 343,995 international residents (as of 2021)
  • International schools in and around Lisbon: 28 (British, French, American, German, and more)
  • 20 hospitals
  • 16+ beaches in close proximity to Lisbon

Education in Lisbon

Lisbon offers diverse educational opportunities with reputable universities like the University of Lisbon and NOVA University Lisbon. The city boasts a rich cultural and academic environment, attracting international students to the city. When it comes to international schools in Lisbon, there are eight schools in Lisbon City and a further 20 in Greater Lisbon, with a range of curricula and teaching methods, including schools that follow the British curriculum and the American curriculum.

Healthcare in Lisbon

Lisbon provides quality healthcare services through a well-developed system. Public hospitals, private clinics, and healthcare professionals ensure comprehensive medical care. Legal residents can access the National Health Service, called the SNS. Private health insurance options offer additional coverage and are generally much more affordable than in other Western European cities.

Public transportation

Lisbon offers an efficient public transportation system that comprises buses, trams, trains, and the iconic yellow trams. The metro network connects the city, while trains allow you to get to other parts of the country quickly and cheaply. The Lisbon airport allows frequent international travelers to get around easily.


Lisbon has a lovely climate, which is one of the key reasons why expats head to the city. Winters rarely see temperatures below 10 Degrees C (50 Degrees F), while summers average around 29 Degrees C (84 Degrees F) in August, the warmest month. The city’s proximity to the ocean regulates the temperature and ensures that summers are never unbearably hot.

Why Invest in Lisbon Portugal Real Estate

Over the past few years, Lisbon’s property market has moved from strength to strength. Purchasing property in Lisbon is an outstanding decision due to several compelling factors, including the fantastic quality of life, the potential for a favorable return on investment, and promising prospects for future growth. Looking back over the first six months of the year, we’ve seen the real estate market growing. With demand still outweighing supply – and Lisbon still regarded as an excellent financial investment – we can safely say that now is a prime time to buy.

Please keep in mind that the asking price can differ from the purchase price. In reality, property sales prices can often be significantly lower. Those selling real estate frequently aim to sell their properties by a specific deadline and may be influenced by various factors that can help buyers get a better price for the property. Additionally, it’s important to note that there is a possibility that the purchase price could be higher than the asking price, although, as you can see below, this is not so common.

The future of Lisbon’s real estate market

Lisbon’s real estate market has transformed in recent years, with foreign buyers snapping up properties in the city and increased demand from expats from all walks of life. In 2024, it is highly likely that supply will continue to be outstripped by demand and that prices for houses for sale in Lisbon Portugal will continue to rise, particularly in more in-demand areas.

However, with this in mind, if you are looking to invest in Lisbon’s real estate market or relocate to the dynamic capital of Portugal, now is an excellent time to do so. It is still possible to secure great deals on properties, provided you understand the market. Working with a buyer’s agent will ensure you have access to the best properties that fulfil your requirements and meet your budget.

Making your Lisbon real estate investment a reality

Navigating the real estate process can be a challenge, even in our home countries. To be assured that you are paying a fair price for property in Lisbon, we would always recommend enlisting the help of a trusted real estate professional to help you through the process. There are localized issues like how a property’s price per square meter compares to what’s nearby, the historic prices that houses on the street have been sold for, and whether the area is located close to schools, shops, and parks. A buyer’s agent, local real estate agent in Lisbon, or real estate lawyer in Lisbon will be able to lend a hand in this regard, with most real estate agencies in Portugal speaking English.

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 real estate investments and how to buy property in Portugal. From scouting out the perfect Lisbon property through to property acquisition, we have you covered throughout the entire process and can help you achieve your property dreams.

If you are looking to find your dream home in Lisbon, don’t hesitate to get in touch. Lisbon offers a wide array of wonderful properties, with several different property types available. We can help you get the best property at the best possible price. Our team of skilled experts is available to solve all your real estate doubts, offering insightful expertise and strategic advice.

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 client and provide a service tailored to your 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, 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

In Lisbon, demand has surpassed supply, leading to higher prices. Prices for Lisbon homes will also vary depending on the neighborhood. If you are looking to purchase property in Lisbon at an affordable rate, you should look at some of the up-and-coming neighborhoods, such as Marvila. Plus, if you buy outside the city center, you should find that property prices tend to decrease. Compared to most European countries in Western Europe, you will also find affordable prices available. There are also no restrictions on foreign ownership when it comes to buying property in Portugal and many different property types for sale in Lisbon, from modern apartments to quaint townhouses. 

When it comes to real estate in Lisbon Portugal, knowing whether to rent or buy a property can be tricky and will depend on your needs. If you look over a longer time period, buying property is better, as you can receive a steady return on your investment, and Lisbon has a thriving real estate sector. Who knows, in ten years or so, you may be kicking yourself to think that you did not buy a property and chose to rent instead. You will find an array of stunning Lisbon houses for sale to cater to whichever requirement. Nonetheless, we know that buying property is a major investment, and renting may be better suited to your current needs.

When checking real estate listings and looking at the asking prices for property, take note that the sales price is often lower than this as those selling real estate want to make the sale by a particular date.

There are no restrictions on foreign property ownership in Portugal. Therefore, when it comes to buying Lisbon real estate, foreigners can purchase property with ease and will face no restrictions. There are many different types of Lisbon, Portugal houses for sale, so you should be able to find your dream home that meets your exact requirements.

Lisbon offers an array of neighborhoods, each of which has its own unique vibe and characteristics. The most sought-after properties in Lisbon are in Baixa, Lapa, and Campo De Ourique. There are great opportunities for living well in these neighborhoods as well as from an investment perspective, offering promising rental yields for both long and short rentals. Estrela is a great place to buy property in Lisbon if you would like to move to the capital with your family.

When comparing property prices in Lisbon with other Western European capitals, Lisbon is relatively inexpensive. However, if you are looking to buy property in Lisbon, prices are on the rise, and the Portuguese capital has its own price range when compared with the rest of the country.

While Lisbon housing prices are more expensive than in other parts of the country, you will find many investment properties that are perfect for a second or third home, to rent out, or even live in permanently. If you are seeking a place to buy, property in Lisbon comes highly recommended, and if you work with a buyer’s agent, such as Goldcrest, you will also have access to new real estate listings and properties not publicized elsewhere.

There are also no restrictions to buying real estate in Portugal, making it easy for foreign buyers to snap up property. You will find plenty of different property types for sale in Lisbon, making it easy to secure your ideal property. 

The rapid rise of property prices in the Portuguese capital has left many wondering whether there is a Lisbon real estate bubble. However, much of the recent increase has come from the resumption of growth in the economy after a long period of stagnation.

Housing prices in Portugal did not rise in the mid-90s at the same rate as in other Western European countries and then dropped significantly during the financial crisis.

In the past years, the Portuguese economy has made a miraculous recovery, largely due to special measures brought in by the Portuguese government, with the Portugal Golden Visa program and the non-habitual tax regime being some of the most successful. These incentives have helped to encourage investment in Portugal on a massive scale, and as a result, the country’s economy has been enjoying a period of stable growth.

Property prices in Lisbon City have experienced a growth rate of 50 percent from 2017 to 2022. The Portuguese real estate market, and Lisbon, in particular, is predicted to continue growing at a steady pace over the coming years.

A quick online search for “real estate investment Lisbon” will highlight the popularity of the capital city of Portugal, as the municipal area is a major tourist destination. Additionally, the picturesque city has a buzzing pulse and rich cultural history.

The property market in Lisbon is strong at the moment, with continued high demand over the past few years, which is reflected in property prices. When it comes to Lisbon homes for sale, the average asking price for property in Lisbon City is €6,009 per m², while if you look at the Lisbon Metropolitan Area, prices stand at €4,061 per m². Note that the transaction price can be significantly lower – or, in fewer cases, higher than – the asking price. 

Portugal is undergoing an economic and social boom, attracting a new wave of affluent international investors, entrepreneurs, and young professionals. The dynamic Portuguese market has a wide variety of great investment opportunities and is forecast to continue on a trajectory of healthy growth in the coming years. The city of Lisbon and Portugal as a whole offer a number of tax benefits to incentivize redevelopment in historic centers.

Whether you are looking for single family homes for sale in Lisbon Portugal, modern apartments, or more luxury villas, you will find a wide range of property types in the Portuguese capital and should be able to find your dream home here. Properties in Lisbon come in all shapes and sizes, and you will first want to make a note of what you are looking for, whether it’s privacy, a villa with a pool, or a quaint historic townhouse. Do your research, as a quick online search for “homes for sale Lisbon Portugal” or “buying house in Lisbon” will provide you with a nice overview of what’s on offer.

You will also find a range of commercial properties and tourist properties available in Lisbon. Property types for tourist real estate include serviced apartments and hotel projects.

Alongside the price of buying property in Lisbon Portugal, ensure you consider associated taxes (such as IMT (Property Transfer Tax), IMI, and Stamp Duty), Portuguese mortgage, Notary fees, legal fees, and agency fees, amongst other expenses that will influence the overall cost of your property purchase in Lisbon. Paying fees associated with the property purchase can add up, so make sure to factor in each additional expense to the property costs.

If you are a non-EU citizen, you will need to secure a residency permit to live in Portugal. There are many options to choose from, including the D7 Visa and the Digital Nomad Visa. After five years of legally residing in the country, you can apply for permanent residency or Portuguese citizenship. To acquire citizenship you meet all the requirements under Portuguese nationality law.

The initial step is to do your research to get a clear picture of the real estate market. A quick online search for “houses for sale Lisbon Portugal,” “property for sale Lisbon,” “buy house Lisbon’, or “buying real estate Lisbon” will provide you with a good overview of the market.

After this, we recommend getting in touch with a real estate professional who will be able to discuss your needs and kickstart the search based on your requirements. Bear in mind that while real estate agents work on behalf of the seller and will get a higher commission for a higher sale, buyer’s agents work solely on behalf of the buyer, ensuring your exact needs are met.

The average asking price for a property in the Lisbon Metropolitan Area is €4,061, increasing to €6,009 in Lisbon City. Prices generally decrease as you move away from the city center.

Desirable areas for real estate investment in Lisbon include Chiado, Baixa, and Alfama, known for their historical charm and high demand. Marvila, an up-and-coming area of the city could also be a good option, with rental yields standing at 6.6. percent.

You’ll find a wide range of property types available in Lisbon. Properties for sale include modern apartments, townhouses, and villas, catering to various preferences and budgets.

Foreigners buying property in Lisbon will face no restrictions but will need to obtain a Portuguese tax identification number (NIF number), and it is recommended that they open a Portuguese bank account.

The buying process in Lisbon involves finding the perfect property, making an offer, negotiating terms, conducting due diligence, signing a preliminary contract, and completing and signing the final deed at a Notary.

Yes, you will be required to pay taxes both at the time of purchase and on an annual basis. Taxes that you will need to pay at the time of purchase include Property Purchase Tax (IMT) and Stamp Duty. Following this, you will need to pay Municipal Property Tax (IMI) and potentially Portuguese Wealth Tax (AIMI), if your property is valued above €600,000. 

There are more than fifteen banks offering mortgages to foreigners in Portugal, including BCP Millennium, Bankinter, Santander, and Banco CTT.

The best way to find a trusted real estate agent is to seek recommendations from friends and family or look into companies’ testimonials. Bear in mind that real estate agents work on behalf of the seller and will get a higher commission for a higher sale. As such, it can be a good idea to work with a buyer’s agent, who works solely on behalf of the buyer, ensuring your needs are met and your interests protected.

Recent trends in the Lisbon real estate market show steady price growth, increasing demand from international investors, and a focus on sustainable development and urban regeneration projects.

The First Home Scheme, a partnership between the government and participating banks, is a shared equity scheme that aims to help first-time buyers cover the cost between their deposit and mortgage, and the price of their new home.