With all the eyes turned to the Portuguese Capital, Lisbon became a great place in Europe for real estate investments in 2023. Buying a property in Lisbon showed up to be a good deal, especially after the economic recovery. Together with the exponential physical growth of the city's territory and the political turbulences in the east European countries, Lisbon converted itself to The Hotspot for property investments in 2023.
Ratifying all these predictions, the Emerging Trends in Real Estate® Europe report, from PwC and the Urban Land Institute, shows an amazing prognostic where Lisbon has been ranked in 11th position in the list of the most attractive European cities for real estate investment in 2023. The Portuguese Capital, gained five positions when compared with the prior year. Lisbon shows up as the city with the biggest mobility in the current list, passing from the 16 to 11 position, becoming one of the best European cities to invest in properties, placed in front of other real estate titans such as Vienna, Brussels and Zurich.
The 20th edition of the Emerging Trends in Real Estate® Europe report brings an overview of the European economies, from the recovery after the pandemic to the disruption effected by the war in Ukraine. The research explains how inflation, driven by rising energy costs, will alter the outlook of how to buy a property in the coming year of 2023.
Why invest in Lisbon real estate
According to the report, Lisbon seems to be an expanding market, with a growth rate bigger than other European markets in terms of the real estate market. The study confirms that Lisbon will be keeping a strong international need in 2023, even if local assets recede. One of the main concerns of the PwC Emerging Trends in Real Estate in Europe report is indeed Russia’s invasion of Ukraine, followed by international Political instability, and climate change concerns.
Although Russia & Ukraine's conflict appears as the top social-political issue for 88% of industry leaders, the war situation affects Lisbon very little. Being the Westernmost Capital of Europe, the political turbulences in the East is having very little impact on Portuguese life. A good example is the very little dependence on Russia's gas supplies as Portugal consumes mostly its gas from another supplier
While real estate is suffering a major impact in Easter countries, Portugal turns out to be a very safe investment option, due to its strong economic recovery and stability. The PwC Study also display international political instability as the second highest concern for the industry. For 79% of the respondents, the European and national political instability is concerning, as the arrival of new political leaders in the UK, Sweden and Italy, bringing the populism factor back to the table, a problem that does not affect Portugal for now. Actually, on the contrary, Portugal has now a consensus on the Government, with the majority of the Parliament being allied to the Prime Minister's party, dispelling any political turbulence for the next fell years.
Finally, climate change - which was figured at the top of the list in previous years - is still in play, and it is the third main concern of factors that can affect real estate in Europe. According to the study, climate change can affect the companies' decision-making processes about the environment they want for their companies and staff. The interviewees indicated that many occupiers still prefer new-build assets to meet their net-zero targets. In several European countries, it appears to be easier today to obtain financing for new developments rather than refurbishment projects.
Portugal Homes is thriving in this sector, though, with 10 refurbished developments made since the beginning of the company. The Project Development & Construction Department proved to be very successful purely designing a project that fulfils our investors’ needs when it comes to buying and renovating a building for investment purposes, always mainly considering the sustainability aspect of the developments.
The Portuguese Golden Visa as an investment goal
Those high global demands on the Lisbon real estate market may also be connected to the Portuguese Golden Visa Programme, one of the most strong and profitable in Europe, which allows third-country citizens to gain the Residence Permit through real estate investment.
The Golden Visa Programme provides several benefits, such as travelling freely across Europe, within the Schengen Zone, as well as the right to live and work in Portugal, and having access to social security support, public education, and universal medical care, which is free of charge in the country. After five years of living legally in the country, the investor will have the possibility to apply for Portuguese citizenship and obtain the Portuguese Passport, one of the most powerful passports in the world.
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Read more about the Golden Visa:
Portugal Golden Visa Properties & Apartments in Lisbon
Portugal Golden Visa Investment Property in the Algarve
Portugal Golden Visa Changes & Stats on Investments Evolution
Is the Portugal Golden Visa Ending?
Investing in Lisbon properties vs. other European markets
According to the PwC and the Urban Land Institute report, the best real estate market to receive investments in Europe is London, the capital of the United Kingdom, which stands at the top of the ranking for the second year consecutive. London's overall prospects, especially for offices and logistics, together with the depth of London’s investment market reflect the extent of its broader metropolitan area, something that is only rivalled in Europe by Paris. The French capital took over second place from Berlin (now classified as the third) as German’s dependency on Russian gas supplies came to the spot.
Although other markets seem to be more stable, Lisbon emerge as a very promising and profitable market due to its very recent "discover" by international investors. The new "Californian Dream" of Europe, as Portugal is starting to be named, puts the country in the spot and brings attention to the entire world as a land to be worked. The relatively small territory, filled with rich culture and a friendly population, are good attractive, but what makes Portugal a golden mine is indeed its cost of living, which makes the property prices lower than other European markets.
Where is the best place to buy an investment property in Lisbon?
Lisbon leads the Portuguese economy, being the country’s biggest city, and also the main country’s capital, being located on the west coast of the country. It is the most populated region, unifying both Portuguese and expats in a very friendly atmosphere. With one of the lowest crime rates in the world, a privileged sunny weather that stretches along 300 days per year, a world-renowned cuisine and a relaxed lifestyle with a twist of entrepreneurial spirit, Lisbon have unarguably become the best place for foreigners to live in and invest. The real estate market in Lisbon became the investment hotspot in Europe for 2023.
As the city continues to expand in importance, international investors keep reaching the opportunities in Lisbon's best areas to invest. Portugal Homes grants the best deals in the City Centre, especially in key areas for a profitable investment such as the Baixa & Chiado locations (Santa Maria Maior parish), the nightlife neighbourhood Bairro Alto (Misericordia Parish), the high-profile business avenue, Avenida da Liberdade (Santo Antonio Parish), and the business quarters Avenidas Novas and Parque das Nações. Portugal Homes and its real estate experts will advise and offers the best deal for investment in Lisbon.
Property prices in Lisbon (per square metre)
It is important to understand that Lisbon is a very small European capital in terms of territory, which lead to a significant variation in meter square prices. From one street to another, the prices may increase or decrease within Lisbon’s parishes, and that is why specialised advice is always the best way to go when thinking about making a property investment. If you are looking for a great business opportunity, buying a property in Lisbon in 2023 may be the best arrangement. Whether as an investment or simply to find a new home, it is useful to understand how the different Lisbon neighbourhoods are and what each has to offer. Lisbon is a picturesque city and embodies a perfect blend of historical and modern aesthetics.
Hover over a parish to check the price per square metre of properties for sale in Lisbon.
The real estate market in Portugal is rising quickly and Portugal Homes can help you with this decision-making process. Straightforward, the process of buying a property in Portugal has 3 main steps: Reservation, Promissory, and Deeds, and Portugal Homes can help you in all steps. Starting with the introduction of all the Lisbon Parishes and highlighting the best investment properties in each of them until you find the perfect fit for you.
Once you have found your dream Portugal property for sale and agreed on a price with the seller, the first step is to make a reservation. After the first step, it is important to get legal advice before proceeding to the promissory contract; the seller will include all the important points of the sale and a complete rundown of the property in this contract. If the Portugal property you are looking to purchase is ready and you have the funds in place it is possible to skip step 2 and go straight to step 3, however, not many people have the full amount available in 15-30 days which is why it is important to have a Promissory contract signed.
Portugal Homes also offers the After Sales service, which consists of tailored assistance aiming to fully satisfy our client's needs before and after you make your purchase. This service will follow you in every step needed, ensuring any and every issue can be addressed. From picking up your forgotten bunny in the property to attending the condominium meetings, After Sales is available to meet all your needs at all times.
Before the purchase is made, the After Sales department will help you to open your Portuguese Bank Account and to acquire your Portuguese Fiscal Number being your Fiscal Representative. After your purchase, the After Sales Department will take care of your Tax Returns, VAT Returns, issuing receipts and every other aspect related to the client’s responsibility towards the Portuguese Finance Department - for example, Council Tax Payment.
Buying property in Portugal is an extremely transparent process and you, as a buyer, will be completely protected during the whole process. Portugal Homes, however, will make this whole process even easier, supporting your decisions on each step of your journey of buying property in Portugal.
