Lisbon is among the best for real estate investments in Europe

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Lisbon is among the best for real estate investments in Europe
Reading time: 21 minutes
Published: 18th February 2022, 5:33pm
Updated: 5th January 2023, 12:50pm
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. 
Lisbon has become one of the best places in Europe for real estate investments.

 

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. 

Rank (2023) City
1 (1)
London
2 (3)
Paris
3 (2)
Berlin
4 (6)
Madrid
5 (5)
Munich
6 (7)
Amsterdam
7 (4)
Frankfurt
8 (8)
Hamburg
9 (9)
Barcelona
10 (11)
Milan
11 (16)
Lisbon
12 (12)
Vienna
13 (13)
Dublin
14 (18)
Copenhagen
15 (10)
Brussels

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. 

Learn more on Portugal Golden Visa.

 

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. 

View on Avenida da Liberdade - the street with most exclusive properties in Lisbon.

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. 

Lisboa, Chiado, Bairro Alto and Avenida da Liberdade are some of the best areas for real estate 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. 

Lisbon Parish prices per square metre
Ajuda
4.880 eur/m²
Alcântara
6.740 eur/m²
Alvalade
5.629 eur/m²
Areeiro
4.941 eur/m²
Arroios
5.208 eur/m²
Avenidas Novas
6.246 eur/m²
Beato
4.511 eur/m²
Benfica
4.494 eur/m²
Belém
6.156 eur/m²
Campo de Ourique
6.143 eur/m²
Campolide
5.921 eur/m²
Carnide
4.404 eur/m²
Estrela
6.443 eur/m²
Misericórdia
6.685 eur/m²
Lumiar
4.111 eur/m²
Marvila
4.271 eur/m²
Parque das Nações
6.705 eur/m²
Penha de França
4.116 eur/m²
Santa Clara
3.683 eur/m²
Santa Maria Maior
6.315 eur/m²
São Vicente
4.881 eur/m²
Santo António
7.982 eur/m²
São Domingos de Benfica
4.837 eur/m²
Santa Maria de Olivais
3.845 eur/m²
Hover over a parish to check the price per square metre of properties for sale in Lisbon. 

Buy a property in Lisbon with Portugal Homes

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. 

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Buying Property in Portugal

Portugal Homes has very experienced and knowledgeable professionals working with some of the most established and reputable developers Portugal has to offer. Our vast experience allows us to guide you through the best investment choices.

Whether you want a holiday home or an investment property, we select the best units for your profile and take care of all the process from start to finish. Even after the sale! Our After Sales services assume the responsibility of furnishing your property at your taste, taking care of the property in your absence, managing the rentals if you wish to rent your property when you’re not in Portugal and so much more!

To learn more about the Portuguese Non-Habitual Resident Program and our After Sales services, please fill the form below.

Thanks to Andreia Leite for the comprehensive and timely updates on the construction progress of the new development we purchased!

Investor from the USA

Very helpful. Work with his heart. Mark is a very nice advisor. 

Investor from Morocco

Everything was perfect. I got all answers about my questions. 

Investor from Turkey

Ryan was an excellent real estate agent, he really steered me in the right direction based on what I said was important to me. Living in another country, I wasn't as familiar with the city as he is. Where I thought I wanted to live and what I truly wanted were not the same. He took the time to listen and figure out the best spot for me, and we are very happy with it - far more than we would have been elsewhere.

Investor from the USA

The overall experience was great from follow up to After Sales. I would like to give special thanks to Mr. Simon, Ms. Francisca and Ms. Mariana.

Investor from UAE

George Hobson is a pleasant young man, came across as knowledgeable, experienced, hardworking, honest & disciplined; I felt very comfortable in easily making my investment.

Investor from UAE