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Yes, the analysis of Lisbon's property market is included in our pack
Lisbon's apartment market has experienced dramatic price growth, with average prices reaching €5,600 to €8,500 per square meter in prime areas as of June 2025.
The Portuguese capital offers diverse neighborhoods with varying price points, from affordable districts like Olivais at €3,523/m² to premium areas like Parque das Nações commanding €8,517/m². Understanding these price variations is crucial for both investors and homebuyers navigating Lisbon's competitive real estate landscape.
If you want to go deeper, you can check our pack of documents related to the real estate market in Portugal, based on reliable facts and data, not opinions or rumors.
Lisbon's apartment prices vary significantly by location, with prime neighborhoods averaging €7,000-€8,500/m² while affordable areas start around €3,500/m².
Total buying costs including taxes and fees typically add 7-10% to the purchase price, with mortgage rates currently ranging from 3-6% for foreign buyers.
| Neighborhood | Average Price per m² | Category |
|---|---|---|
| Parque das Nações | €8,517 | Most Expensive |
| Avenidas Novas | €8,377 | Prime Central |
| Estrela | €7,694 | Premium |
| Campo de Ourique | €6,974 | High-End |
| Alvalade | €6,235 | Mid-Range |
| Benfica | €3,971 | Affordable |
| Olivais | €3,523 | Most Affordable |
What are the current average apartment prices in Lisbon by neighborhood or district?
As of June 2025, Lisbon apartment prices show significant variation across different neighborhoods and districts.
The most expensive neighborhoods include Parque das Nações at €8,517 per square meter, followed by Avenidas Novas at €8,377/m² and Estrela at €7,694/m². These premium areas attract buyers seeking modern amenities, central locations, and prestigious addresses.
Mid-range neighborhoods offer more moderate pricing, with Campo de Ourique averaging €6,974/m², Belém at €6,757/m², and Alvalade at €6,235/m². These areas provide good access to city center amenities while maintaining somewhat more affordable entry points.
The most affordable neighborhoods for apartment purchases include Olivais at €3,523/m², Penha de França at €3,649/m², and Benfica at €3,971/m². These districts offer the best value for money while still providing access to Lisbon's urban infrastructure and public transportation networks.
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Which areas in Lisbon are considered the most expensive, the most affordable, and the most up-and-coming for apartment purchases?
The most expensive areas for apartment purchases are concentrated in Lisbon's central and waterfront districts.
Parque das Nações leads the luxury market due to its modern infrastructure, proximity to the airport, and contemporary residential developments. Avenidas Novas commands high prices for its central location and business district proximity, while Estrela attracts families and affluent buyers with its tree-lined streets and premium residential character.
The most affordable neighborhoods include Olivais, which offers proximity to the airport and developing infrastructure, Penha de França for its residential character and improving connectivity, and Benfica for its family-friendly environment and good value proposition.
Up-and-coming areas showing strong growth potential include Ajuda, benefiting from urban regeneration and proximity to the new university campus, Marvila, transforming from an industrial area into an arts and culture hub with new developments, and Campo de Ourique, attracting young professionals with high rental yields and increasing demand.
These emerging neighborhoods represent the best opportunities for capital appreciation and rental income growth in the coming years.
What's the breakdown of average apartment prices based on property type—studio, 1-bedroom, 2-bedroom, etc.?
Apartment prices in Lisbon vary significantly based on property type and size, with location being the primary price determinant.
| Property Type | Typical Size | Price Range |
|---|---|---|
| Studio | 30-40 m² | €120,000 - €300,000 |
| 1-Bedroom | 50-70 m² | €200,000 - €500,000 |
| 2-Bedroom | 70-100 m² | €300,000 - €800,000 |
| 3-Bedroom | 100-130 m² | €600,000 - €1,200,000 |
| 4+ Bedroom | 130+ m² | €1,000,000+ |
Studios in affordable neighborhoods like Olivais start around €120,000, while the same unit type in Parque das Nações can exceed €300,000. One-bedroom apartments show similar variation, ranging from €200,000 in peripheral areas to €500,000 in prime central locations.
Two-bedroom apartments represent the most popular segment for both investors and residents, with prices spanning from €300,000 in developing areas to €800,000 in premium neighborhoods. Larger apartments with three or more bedrooms are primarily concentrated in upscale districts and can command prices exceeding €1 million in prime areas like Estrela and Avenidas Novas.
How do average apartment prices vary by surface area, such as per square meter?
Lisbon's apartment prices per square meter create a clear hierarchy based on neighborhood desirability and infrastructure quality.
Premium neighborhoods command the highest per-square-meter prices, with Parque das Nações leading at €8,517/m², Avenidas Novas at €8,377/m², and Estrela at €7,694/m². These areas benefit from excellent transportation links, modern amenities, and prestigious addresses.
Mid-tier neighborhoods offer moderate pricing, including Campo de Ourique at €6,974/m², Belém at €6,757/m², and Alvalade at €6,235/m². These districts provide good access to city center amenities while maintaining more reasonable price points for middle-class buyers.
Affordable neighborhoods present the best value propositions, with Olivais at €3,523/m², Penha de França at €3,649/m², and Benfica at €3,971/m². These areas offer significant savings compared to central districts while still providing access to Lisbon's urban infrastructure and public transportation systems.
The price differential between the most expensive and most affordable neighborhoods reaches approximately 140%, demonstrating the significant impact of location on apartment values in Lisbon.
What are example purchase prices for standard apartments in popular neighborhoods?
Standard apartment purchase prices in Lisbon's popular neighborhoods demonstrate the significant price variations across different districts.
In Olivais, a 70-square-meter two-bedroom apartment would cost approximately €246,610, calculated at €3,523 per square meter. This neighborhood offers excellent value for money with good transportation connections and developing infrastructure.
Campo de Ourique, popular with young professionals, commands €488,180 for the same 70-square-meter apartment at €6,974 per square meter. This area provides central location benefits with strong rental demand and good amenities.
Parque das Nações, representing Lisbon's premium market, would require €596,190 for a 70-square-meter two-bedroom unit at €8,517 per square meter. Buyers pay premium prices for modern developments, waterfront location, and excellent infrastructure.
Estrela and Avenidas Novas fall in between, with similar apartments costing €538,580 to €586,200 respectively. These neighborhoods offer central locations with family-friendly environments and good appreciation potential.
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How much should I budget in total when buying an apartment in Lisbon, including notary fees, taxes, legal costs, and agent commissions?
Total apartment purchase costs in Lisbon typically require budgeting 7-10% above the property purchase price for various fees and taxes.
Agent commissions represent the largest additional expense, ranging from 3-5% of the purchase price. For a €400,000 apartment, this translates to €12,000-€20,000 in commission fees paid to the real estate agent handling the transaction.
Government taxes include IMT (Property Transfer Tax), which varies by price bracket but typically amounts to approximately €13,000 for a €400,000 property, and stamp duty at 0.8% of the purchase price, adding €3,200 to the total cost.
Legal and notary fees typically range from €3,000-€6,000, covering lawyer services, document preparation, and notary registration. These professional services ensure proper legal compliance and property title transfer.
For a €400,000 apartment purchase, buyers should budget approximately €31,200-€42,200 in additional costs beyond the purchase price, bringing the total investment to €431,200-€442,200. Higher-value properties may see these percentages decrease slightly, while lower-value purchases might face higher relative costs.
What are the mortgage options for buying an apartment in Lisbon, and what are the average interest rates and down payment requirements?
Mortgage options for apartment purchases in Lisbon offer various terms and requirements, particularly for foreign buyers.
Interest rates for foreign buyers currently range from 3-6% as of mid-2025, with rates varying based on loan amount, borrower profile, and chosen bank. Portuguese banks typically offer more competitive rates to EU residents compared to non-EU buyers.
Down payment requirements typically range from 10-30% of the property purchase price. Portuguese banks generally require higher down payments from foreign buyers, with 20-30% being standard for non-residents, while residents may secure financing with as little as 10-15% down payment.
Loan terms extend up to 30 years for most borrowers, though banks may impose shorter terms for older applicants or higher-risk profiles. Banks require proof of income, employment stability, and residency status documentation for loan approval.
The Euribor rate is expected to stabilize around 2% by late 2025, potentially reducing overall mortgage costs for variable-rate loans. Fixed-rate mortgages provide payment certainty but typically carry slightly higher interest rates than variable options.
It's something we develop in our Portugal property pack.
What are the smartest apartment investment strategies today: living in it, renting short-term (e.g. Airbnb), renting long-term, or flipping for resale?
Current apartment investment strategies in Lisbon favor long-term and mid-term rental approaches due to regulatory changes and market conditions.
Long-term rental strategies yield 5-7% annually in central districts, providing stable income from professionals and families seeking residential accommodation. This approach offers consistent cash flow with minimal management requirements and strong tenant demand across most neighborhoods.
Mid-term rental (1-12 months) generates similar 5-7% yields while attracting expats, digital nomads, and temporary workers. This strategy commands higher rents than traditional long-term leases while avoiding short-term rental licensing complications.
Short-term rental (Airbnb) faces significant regulatory constraints in central Lisbon areas, with limited licensing availability and yields of 5-8%. New licenses are rarely approved in central districts, making this strategy viable primarily in peripheral areas or existing licensed properties.
Living in the property provides capital appreciation benefits, with prime areas experiencing 6-10% annual appreciation. This strategy suits buyers prioritizing lifestyle benefits and long-term wealth building over immediate rental income.
Flipping for resale requires careful consideration due to high transaction costs (7-10% of property value). This strategy works best in up-and-coming neighborhoods like Ajuda or Marvila with strong growth potential and lower entry prices.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Portugal versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How have apartment prices in Lisbon changed over the past 5 years and in the last 12 months?
Lisbon apartment prices have experienced dramatic growth over the past five years, nearly doubling from €3,000-€3,500 per square meter in 2020 to approximately €5,600-€6,900 per square meter in central areas by 2025.
This 90-100% price increase over five years represents one of Europe's most significant residential property appreciations. The growth was driven by increased international demand, limited housing supply, and Portugal's golden visa program attracting foreign investment.
In the last 12 months, Lisbon prices increased by 5.9% in Q1 2025, with year-on-year acceleration reaching 8.6%. This recent acceleration suggests continued strong demand despite higher interest rates and economic uncertainties affecting other European markets.
Historical annual appreciation typically ranged 3-7% before the recent surge, but recent years have seen much higher spikes due to supply constraints and international buyer demand. The pandemic period (2020-2022) saw particularly strong growth as remote work increased housing demand and international buyers sought lifestyle changes.
Current growth rates remain above historical averages, though the pace has moderated compared to 2021-2022 peaks when some areas experienced 15-20% annual increases.
What are the forecasts for apartment prices in Lisbon over the next 1, 5, and 10 years?
Apartment price forecasts for Lisbon suggest continued growth across all time horizons, though at potentially moderated rates compared to recent years.
Over the next year, experts predict 3-7% price increases as demand continues to outpace supply in most neighborhoods. As we reach mid-2025, market fundamentals remain strong with limited new construction and steady international buyer interest supporting price growth.
Five-year forecasts suggest cumulative growth of 15-35% if current trends continue, translating to approximately 3-6% annual appreciation. This growth assumes continued economic stability, moderate interest rates, and gradual supply increases as new developments come online.
Ten-year projections indicate potential value doubling in prime areas, though growth rates may moderate after 2026 as increased supply from current construction projects reaches the market. Prime neighborhoods like Parque das Nações and Estrela are expected to outperform city averages due to limited developable land and continued prestige appeal.
These forecasts assume continued economic growth, stable political conditions, and gradual supply increases. Potential risks include significant interest rate increases, economic recession, or major changes to Portugal's foreign investment policies that could moderate growth rates.
How do average apartment prices in Lisbon compare to those in other major cities like Barcelona, Madrid, Berlin, or Paris?
Lisbon apartment prices remain competitive compared to other major European capitals, though the gap is narrowing rapidly.
| City | City Center Price (€/m²) | Comparison to Lisbon |
|---|---|---|
| Paris | €10,000+ | 45-60% higher |
| Berlin | €8,100 | 10-15% higher |
| Madrid | €6,900 | Similar to prime Lisbon |
| Barcelona | €5,900 | 10-15% lower than prime Lisbon |
| Lisbon | €5,600-€8,500 | Reference point |
Paris remains significantly more expensive than Lisbon, with city center prices exceeding €10,000 per square meter compared to Lisbon's €5,600-€8,500 range. This 45-60% price differential still makes Lisbon attractive for buyers priced out of the French capital.
Berlin apartments average around €8,100 per square meter, positioning slightly above Lisbon's prime neighborhoods but within reasonable comparison range. Madrid's €6,900 per square meter aligns closely with Lisbon's premium areas, reflecting similar economic conditions and market dynamics.
Barcelona, at approximately €5,900 per square meter, now prices slightly below Lisbon's prime neighborhoods, representing a reversal from historical patterns where Spanish cities commanded premiums over Portuguese markets.
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Which neighborhoods currently offer the best value for money or growth potential when buying an apartment in Lisbon?
Several Lisbon neighborhoods present exceptional value propositions and growth potential for apartment buyers in 2025.
Ajuda offers the strongest combination of affordability and growth potential, benefiting from urban regeneration projects and proximity to the expanding university campus. Current prices remain below city averages while infrastructure improvements and educational institution expansion drive increasing demand.
Marvila represents Lisbon's transformation story, evolving from an industrial district into an arts and culture hub with new residential developments. The neighborhood attracts young professionals and creative industries, suggesting strong appreciation potential as gentrification continues.
Olivais provides excellent value near the airport with developing infrastructure and good transportation connections. The area offers significant savings compared to central districts while maintaining growth potential through ongoing urban development projects.
Campo de Ourique delivers high rental yields and attracts young professionals seeking central location benefits at more reasonable prices than premium neighborhoods. The area combines good current income potential with steady appreciation prospects.
These neighborhoods offer entry points for buyers seeking capital appreciation combined with rental income opportunities, particularly compared to already-expensive areas like Parque das Nações or Estrela where growth potential may be more limited.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Lisbon's apartment market offers diverse opportunities across different price segments, from affordable neighborhoods starting around €3,500/m² to premium areas exceeding €8,500/m².
The market continues showing strong fundamentals with steady demand, limited supply, and favorable comparisons to other European capitals, making it attractive for both investors and residents seeking quality urban living.
Sources
- BeGlobal Properties - Portugal House Prices
- GuestReady - Buying Property in Lisbon
- Portugal Homes - Investing Portugal Real Estate
- InvestRopa - Lisbon Which Area
- The Portugal News - Lisbon Price Hike
- InvestRopa - Portugal Price Forecasts
- Tagus Property - Portugal Property Tax
- Property Lisbon - Mortgage Interest Rates
- Portugal Buyers Agent - Mortgages 2025
- Global Property Guide - Portugal Price History