Lisbon is a top 10 target for real estate investments in 2020

  • Início >
  • Notícias >
  • Lisbon is a top 10 target for real estate investments in 2020

Lisbon is a top 10 target for real estate investments in 2020
Reading time: 6 minutes
Published: 28th November 2019, 2:08pm

Portugal continues one of the top trends for the real estate market in 2020, despite dropping from a leading position in 2019. This year’s top of the rank is Paris, which this Emerging Trends in Real Estate Europe study, from PwC and Urban Land Institute, found out to be the most desirable market given ist ability to attract capital of all kinds from all around the world.

Europe lives a climate of change

Price Waterhouse Cooper anticipates a very active property market in 2020, which investors still consider very attractive despite some political uncertainty and the rise of construction costs in Europe. A number of real estates sectors are going through significant structural change. However, demographic trends like tourism, for instance, support investing in housing and hotels as a sound strategic move. 

The European central banks’ decision to maintain or cut interest rates is probably the biggest factor supporting the general levels of optimism among investors. In this environment, real estate investment deals in cities that offer great liquidity and mobility options will be the biggest targets.

Development costs are rising

This is a dilemma for investors, who can see that the over-supply situation that came from the financial crisis is disappearing and much stock needs to be modernised. Sourcing suitable standing core assets is as expensive as ever, so investors are aware of the inflation in labour and material costs necessary for the units’ modernization works.

Climate will impact Real Estate

Among the biggest concerns for 2020 are the Stock Availability and the Rise of Construction Costs. Also, investors are aware that climate change will have the biggest impact on Real Estate in the long term and it’s clear that some industry leaders are already rising to the challenge. The majority of investors enquired have even admitted that expect climate change to become a bigger risk over the next five years, with a general tightening of environmental, social and corporate governance requirements among institutional investors.

The Portuguese real estate scenario

As for the Portuguese capital city, Lisbon, investors realize that there are still several types of real estate investments available in sectors such as Hotels, Residential and Retail. Adding to this, we can see Lisbon’s advantage resides in the much lower occupation costs when compared with other European cities.

Lisbon is a top 10 target for real estate investments in 2020

Lisbon, though a relatively small market, has many admirers! Despite losing the first place in trending cities for real estate, Lisbon is still very attractive to investors as it stays in the top 10. 

Competition for core offices is strong, and yields have fallen; players there have started to move up the risk curve. Plus, there is a growing interest in hotels and student housing. The high demand for office spaces from big insurance companies and german funds allied to competitive yields of about 4%, makes it hard to find good buildings to invest in the office space market, so finding stock is very challenging. Some wonder if the city’s progress towards nearly full employment will make hiring more difficult at some point for the many companies that have set up service and call centres and want to expand.

Situations like this are challenging for foreign investors that are interested in investing in the Portuguese market but lack the qualitative information to move forward. As a company which the majority of clients come from across the globe, Portugal Homes has an in-house data analyst who will give in-depth reports on each of the investment properties our clients are interested in. Through our market reports, clients are able to find all the details concerning the property in question, a full breakdown of all costs and fees associated with it, a market comparison so that they know that the product we are promoting is being sold at market price, rental yields and renovation costs estimation, resale value estimation, and most important the percentage of their return on investment.

Lisbon is a top 10 target for real estate investments in 2020

It is also important to prepare and anticipate operational and strategic decisions, in order to provide additional value to the reports, Portugal Homes will also do an accurate SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis. With Portugal Homes’ research, our client investors have an overview of the property that’s of interest to them along with all the ins and outs of the investment. Investors that work with us, will have all the tools and information needed to make the best decision.

As we published in “The Portuguese economy in giving confidence to investors” article, retail attracts interest in this outward-facing corner of Europe. “In Portugal, retail is still going strong,” one broker says. “This year alone we have registered 400 new leases of units, a lot of it food and beverage which is also related to tourism, but fashion and other uses too. Rental growth is still there for very prime locations and prime shopping centres.”

Government approval of ‘SIGIs’, Portugal’s REITs (Real Estate Investment Trusts), and confirmation of funding to expand the city’s airport and construct a second are further pluses.


Lisbon is a top 10 target for real estate investments in 2020

About Portugal Homes specializes in investments through real estate and Golden Visa. We help buyers find the right property overseas, whether it be for Golden Visa, NHR, Investment or simply a place in the sun. Our properties are selected with great thought in mind to give our clients the best opportunities. We offer the complete service from introducing them to the Legal Representatives, Currency Exchange, Mortgage Advisors, Property Management, Rental and Furniture Packages along with making sure all our staff are trained to fully understand the buying process and taxes for every scenario. Portugal Homes provides the complete service to anyone looking to buy a new or resale property overseas for holiday use or as a short or long-term investment.

To find out more, please contact us:

  • Phone: +351 213 471 603

  • E-Mail:

28th November 2019
Portuguese economy shows signs of continuous and stable growth giving…
18th November 2019
(3min read) Portugal Homes offers you a handbook of all you need to know…

Comprar uma propriedade em Portugall

A Portugal Homes possui profissionais muito experientes e conhecedores, que trabalham com alguns dos promotores mais reconhecidos em Portugal . A nossa vasta experiência permite-nos guiá-lo pelas melhores opções de investimento.

Seja casa de férias ou uma propriedade para investimento, selecionamos as melhores propriedades para o seu perfil e tratamos de todo o processo do início ao fim. Mesmo após a venda! Os nossos serviços de pós-venda assumem a responsabilidade de mobilar a seu gosto, manter a propriedade na sua ausência, dar apoio ao arrendamento, no caso de querer arrendar e muito mais!

Para saber mais sobre Residentes Não Habituais em Portugal e sobre os nossos serviços pós-venda, preencha o formulário abaixo.

É fantástico como o Ryan tinha um conhecimento completo sobre Lisboa e nos tratou da melhor maneira.

Akbar Ali - Investidor do Paquistão

Ryan é muito profissional, mas também amigável e conhecedor do mercado Golden Visa. Também se mostrou flexível, pois, com um curto aviso prévio, viajou do Algarve para me se reunir comigo em Lisboa e substituir 1 colega.

Investir do Reino Unido

A Portugal Homes fez um excelente trabalho mantendo-me atualizado sobre o progresso da compra da minha nova casa, fornecendo relatórios regulares e abrangentes. Isto ajudou-me a aliviar a ansiedade sobre a compra de uma casa durante a pandemia.

Investidor dos EUA

Embora através do Zoom, estabelecemos uma grande confiança na integridade do George. [Foi] importante para nós ter confiança na capacidade do staff em se sentir alinhados em visões.

Donald Collie de Austrália

O processo foi bastante rápido e claro. Obtive toda a informação que precisava na primeira hora de conversa. A experiência foi perfeita.

Tomoko Inoue do Japão

Overwhelming. Luisa has exceeded our expectations on all levels. Trust was established immediately. Enhanced by super friendly professionalism. The networks to banks, accountants, lawyers was seamless. there is not enough space here to write all the positives, enough to say we are making an offer and we only arrived 4 days ago. Its impossible to improve from perfection!

John Mulroe and Wiebke Bock