Authored by the expert who managed and guided the team behind the Portugal Property Pack
Yes, the analysis of Lisbon's property market is included in our pack
Curious about the future of Lisbon's real estate market? You're not alone. With its rich history, vibrant culture, and stunning architecture, Lisbon has become a hotspot for property investors and homebuyers alike.
But what can you expect in terms of apartment prices in 2025? Will they continue to rise, or is there a chance for stabilization? How do these prices compare to other European cities?
In this article, we'll explore the projected trends and provide insights into the average apartment prices in Lisbon for 2025.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Portugal Property Pack
Estimated Average Apartment Prices in Lisbon by 2025
The following table provides an estimation of average apartment prices in Lisbon for the year 2025, broken down by area and measured in both square meters (sqm) and square feet (sft). These estimates are based on current trends and market analysis as of 2023.
| Area | Price per sqm (€) | Price per sft (€) |
|---|---|---|
| Baixa | 7,500 - 8,500 | 696 - 790 |
| Chiado | 8,000 - 9,000 | 743 - 836 |
| Alfama | 6,500 - 7,500 | 604 - 696 |
| Bairro Alto | 7,000 - 8,000 | 650 - 743 |
| Príncipe Real | 7,500 - 8,500 | 696 - 790 |
| Belém | 6,000 - 7,000 | 557 - 650 |
| Parque das Nações | 6,500 - 7,500 | 604 - 696 |
| Santos | 7,000 - 8,000 | 650 - 743 |
| Graça | 6,000 - 7,000 | 557 - 650 |
| Campo de Ourique | 6,500 - 7,500 | 604 - 696 |
| Estrela | 7,000 - 8,000 | 650 - 743 |
| Areeiro | 5,500 - 6,500 | 511 - 604 |
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What You Need to Know Before Buying an Apartment in Lisbon in 2025
What is the average price per square meter for apartments in Lisbon in 2025?
The average price per square meter for apartments in Lisbon in 2025 is estimated to be around €5,000.
This represents a moderate increase from previous years, reflecting the city's growing popularity and demand.
Prices can vary significantly depending on the neighborhood, with some areas reaching up to €7,500 per square meter.
How does the price of new apartments compare to older ones?
Newly constructed apartments in Lisbon tend to be priced at a premium, often 10% to 20% higher than older properties.
This is due to modern amenities, energy efficiency, and contemporary design features that appeal to buyers.
However, older apartments in prime locations can still command high prices due to their historical charm and central locations.
What are the most expensive neighborhoods in Lisbon for apartment purchases?
As of 2025, the most expensive neighborhoods in Lisbon include Chiado, Príncipe Real, and Avenida da Liberdade.
In these areas, prices can exceed €8,000 per square meter, driven by their central location and luxury offerings.
These neighborhoods are highly sought after for their vibrant culture, shopping, and dining options.
Are there any up-and-coming areas in Lisbon where property prices are expected to rise?
Areas like Marvila and Beato are considered up-and-coming, with property prices expected to rise significantly in the coming years.
These neighborhoods are undergoing revitalization, attracting young professionals and creative industries.
Investing in these areas now could yield substantial returns as they continue to develop and gain popularity.
What is the average rental yield for apartments in Lisbon?
The average rental yield for apartments in Lisbon is approximately 4% to 5% annually.
This yield can vary based on location, property type, and market conditions.
Investors often find Lisbon attractive due to its strong tourism sector and growing expatriate community.
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How does the cost of living in Lisbon compare to other European capitals?
Lisbon's cost of living is generally lower than other major European capitals like Paris and London.
While housing costs have risen, everyday expenses such as dining and transportation remain relatively affordable.
This balance makes Lisbon an attractive option for those seeking a vibrant city lifestyle without the high costs.
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What financing options are available for purchasing an apartment in Lisbon?
Buyers in Lisbon can access a variety of financing options, including mortgages from local and international banks.
Interest rates in Portugal are competitive, often ranging from 2% to 3% for fixed-rate mortgages.
Foreign buyers may also benefit from special programs like the Golden Visa, which offers residency in exchange for property investment.
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What are the typical transaction costs associated with buying an apartment in Lisbon?
Transaction costs in Lisbon typically include property transfer tax, notary fees, and registration fees, totaling around 6% to 8% of the purchase price.
Buyers should also budget for legal fees and potential real estate agent commissions.
These costs can add up, so it's important to factor them into your overall budget when purchasing a property.
How has the Lisbon property market been affected by recent economic trends?
The Lisbon property market has shown resilience despite global economic uncertainties, with steady demand from both local and international buyers.
Factors such as low interest rates and a strong tourism sector have supported market stability.
However, potential buyers should remain informed about economic developments that could impact future property values.
What are the legal requirements for foreign buyers purchasing property in Lisbon?
Foreign buyers in Lisbon must obtain a Portuguese tax identification number (NIF) to purchase property.
There are no restrictions on foreign ownership, making it relatively straightforward for international buyers to invest.
It's advisable to work with a local lawyer to navigate the legal process and ensure compliance with all regulations.
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=> What are the legal requirements for buying property in Lisbon?
What impact does tourism have on the Lisbon property market?
Tourism significantly impacts the Lisbon property market, driving demand for short-term rental properties.
This demand has contributed to rising property prices, particularly in central and tourist-heavy areas.
Investors often capitalize on this trend by purchasing properties for vacation rentals, benefiting from high occupancy rates.
How do property taxes in Lisbon compare to other European cities?
Property taxes in Lisbon are relatively low compared to other European cities, with an annual municipal property tax (IMI) ranging from 0.3% to 0.45% of the property's taxable value.
This makes Lisbon an attractive option for property investors seeking lower ongoing costs.
However, buyers should be aware of other potential taxes, such as capital gains tax, when selling a property.