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
Are you wondering whether January 2026 is the right moment to buy a property in Lisbon?
This article breaks down the current housing prices in Lisbon, the key market signals, and what data actually tells us about timing your purchase.
We constantly update this blog post with the freshest numbers so you always have the latest picture.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Lisbon.
So, is now a good time?
Rather yes: buying a residential property in Lisbon in January 2026 makes sense if you target a mainstream apartment in a proven neighborhood and avoid overpaying.
The strongest signal is that Lisbon prices are expensive but protected from a crash by strict lending rules (loan-to-value and debt-to-income caps) that prevent the kind of credit bubble that leads to sudden collapses.
Another strong signal is that housing supply in Lisbon remains structurally tight because new construction cannot keep up with demand, which keeps prices from falling sharply.
Additional signals include falling mortgage rates compared to 2023-2024 peaks, steady demand from both locals and international buyers, and vacancy rates as low as 2% in central neighborhoods like Arroios and Campo de Ourique.
The best strategy is to focus on a liquidity-strong area such as Alvalade, Avenidas Novas, Campo de Ourique, Estrela, or Parque das Nacoes, buy an apartment in good condition, and negotiate hard because you will likely find more room to bargain than in previous years.
This is not financial or investment advice, we do not know your personal situation, and you should always do your own research before making any property purchase decision.
Is it smart to buy now in Lisbon, or should I wait as of 2026?
Do real estate prices look too high in Lisbon as of 2026?
As of early 2026, Lisbon property prices appear stretched when measured against local incomes and rents, with asking prices averaging around 5,400 euros per square meter, which means a typical 75-square-meter apartment costs roughly 400,000 euros.
One clear on-the-ground signal that prices look high is that gross rental yields in Lisbon have compressed to around 3.5% to 4%, which is low compared to secondary Portuguese cities offering 5% or more, suggesting buyers are paying a premium that rents do not fully justify.
Another sign is that properties above 1,500 euros per month in rent or priced at the top of the market now sit longer on listings than they did in 2023 or 2024, indicating that the most expensive segment is meeting buyer resistance.
You can also read our latest update regarding the housing prices in Lisbon.
Does a property price drop look likely in Lisbon as of 2026?
As of early 2026, the likelihood of a meaningful property price drop in Lisbon over the next 12 months is low, mainly because credit standards are strict and supply remains tight.
A plausible range for price movement in Lisbon over the next year is somewhere between a small dip of around 3% and continued growth of up to 8%, with flat to modest growth being the most likely outcome.
The single macro factor that would most increase the odds of a price drop in Lisbon is a sharp rise in unemployment or a deep eurozone recession, because either would reduce buyer demand and force some owners to sell.
However, Portugal's unemployment rate is currently around 6%, and economic forecasts expect GDP growth of about 2% in 2026, so a severe downturn is not the base scenario at this time.
Finally, please note that we cover the price trends for next year in our pack about the property market in Lisbon.
Could property prices jump again in Lisbon as of 2026?
As of early 2026, the likelihood of a renewed price surge in Lisbon within the next 12 months is medium, because while demand drivers remain strong, affordability constraints are limiting how fast prices can climb.
A plausible upside price change range for Lisbon over the next year is between 5% and 10%, with the higher end more likely if mortgage rates fall further and foreign demand stays robust.
The single biggest demand-side trigger that could push Lisbon prices to jump again is a continued decline in mortgage rates, because even a small rate drop significantly increases monthly affordability and unlocks more buyers.
Please also note that we regularly publish and update real estate price forecasts for Lisbon here.
Are we in a buyer or a seller market in Lisbon as of 2026?
As of early 2026, Lisbon is still closer to a seller's market in the neighborhoods buyers actually want, though negotiating power has improved compared to the frenzy years of 2021-2022.
Lisbon does not publish a formal months-of-supply figure, but based on listing turnover and sales pace, inventory in desirable central areas like Alvalade or Campo de Ourique behaves like a 3 to 4 month supply, which typically favors sellers.
The share of listings with price reductions in Lisbon has grown modestly, but remains concentrated in overpriced or compromised units, while well-priced properties in good locations still move quickly, suggesting sellers of quality stock retain leverage.
We have made this infographic to give you a quick and clear snapshot of the property market in Portugal. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Are homes overpriced, or fairly priced in Lisbon as of 2026?
Are homes overpriced versus rents or versus incomes in Lisbon as of 2026?
As of early 2026, homes in Lisbon appear overpriced when comparing purchase costs to both rents and local incomes, requiring either high household earnings, substantial equity, or foreign income to afford a typical central apartment.
The price-to-rent ratio in Lisbon is currently around 25 to 28, meaning it takes roughly 25 to 28 years of rent to equal the purchase price, while a balanced market benchmark is typically closer to 15 to 20.
The price-to-income multiple in Lisbon is also stretched, with a median apartment costing around 12 to 15 times the median household income, well above the 4 to 6 range considered affordable in most European cities.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Lisbon.
Are home prices above the long-term average in Lisbon as of 2026?
As of early 2026, Lisbon home prices are significantly above their long-term average, with values having more than doubled since 2015 and risen around 48% in just the past five years.
The recent 12-month price change in Lisbon has been around 15% to 17%, which is well above the pre-pandemic pace of roughly 8% to 10% per year, indicating the market is still running hot compared to historical norms.
In inflation-adjusted terms, Lisbon prices are at or near their prior cycle peak, meaning buyers today are paying real-term highs, though the structural supply shortage may justify a "new normal" rather than a bubble.
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What local changes could move prices in Lisbon as of 2026?
Are big infrastructure projects coming to Lisbon as of 2026?
As of early 2026, the biggest planned infrastructure project in Lisbon is the Red Line Metro extension from Sao Sebastiao to Alcantara, which is expected to boost property values in neighborhoods like Campo de Ourique and Infante Santo by improving connectivity to the city center.
The Red Line extension received its construction contract in 2025 and is scheduled to be completed by the end of 2026, adding four new stations and attracting an estimated 11 million additional passengers per year to the metro network.
For the latest updates on the local projects, you can read our property market analysis about Lisbon here.
Are zoning or building rules changing in Lisbon as of 2026?
The most important zoning-related change being discussed in Lisbon is the government's push to unlock more land for affordable housing and reduce barriers to new construction, though implementation remains slow and politically contested.
As of early 2026, the net effect of likely zoning or building rule changes on Lisbon prices is modest, because supply relief takes years to materialize and most new units are targeted at affordability programs that do not directly compete with prime private-market apartments.
The areas most affected by any loosening of building rules would be fringe neighborhoods and former industrial zones like Marvila or Beato, where land availability is greater and redevelopment pipelines are already active.
Are foreign-buyer or mortgage rules changing in Lisbon as of 2026?
As of early 2026, foreign-buyer and mortgage rules in Lisbon are stable, with no major new restrictions expected, but the existing borrower-based limits on loan-to-value and debt-to-income continue to shape what buyers can afford.
The most relevant foreign-buyer rule change was the 2023-2024 Golden Visa reform that ended real estate eligibility in Lisbon and Porto, but this has not triggered the price drop many expected because overall demand remains robust.
On the mortgage side, Banco de Portugal's existing rules cap loan-to-value at around 80% to 90% for residents and maturity at 30 to 40 years depending on borrower age, which limits how much leverage buyers can take and reduces systemic crash risk.
You can also read our latest update about mortgage and interest rates in Portugal.
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.
Will it be easy to find tenants in Lisbon as of 2026?
Is the renter pool growing faster than new supply in Lisbon as of 2026?
As of early 2026, renter demand in Lisbon is still growing faster than new rental supply, mainly because construction cannot keep pace with the city's appeal to expats, digital nomads, students, and locals priced out of buying.
The best signal for renter demand in Lisbon is continued in-migration, with the city hosting nearly 295,000 expats (almost half of Portugal's foreign-born population) plus a steady flow of students and remote workers attracted by Portugal's digital nomad visa.
On the supply side, new housing completions in Lisbon remain limited relative to demand, with building permits rising but still far below what would be needed to meaningfully ease the rental squeeze in central neighborhoods.
Are days-on-market for rentals falling in Lisbon as of 2026?
As of early 2026, correctly priced rentals in Lisbon typically stay on the market for 10 to 25 days, and this pace has remained stable compared to last year, with well-located units under 1,000 euros per month often renting within days.
The gap in days-on-market between best areas and weaker areas is significant: rentals in Arroios, Alvalade, or Campo de Ourique can clear in under two weeks, while properties in outer zones like Olivais or Benfica may take 30 to 45 days or more.
One reason days-on-market stays low in central Lisbon is persistent undersupply combined with strong international demand, which means landlords of quality units rarely struggle to find tenants.
Are vacancies dropping in the best areas of Lisbon as of 2026?
As of early 2026, vacancy rates in the best-performing rental areas of Lisbon, such as Arroios, Campo de Ourique, Estrela, and Alvalade, are already very low at around 2% and are not dropping further simply because they have little room left to fall.
These best areas have vacancy rates roughly half the city-wide average of 4% to 5%, reflecting sustained shortage and deep tenant demand from both locals and international arrivals.
A practical sign that the best areas are tightening is that about 5% of Lisbon rental listings under 1,000 euros near Metro stations disappear within 24 hours of posting, signaling intense competition for affordable, well-located units.
By the way, we've written a blog article detailing what are the current rent levels in Lisbon.
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An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Am I buying into a tightening market in Lisbon as of 2026?
Is for-sale inventory shrinking in Lisbon as of 2026?
As of early 2026, for-sale inventory in Lisbon remains tight for quality stock compared to the same time last year, though headline listing counts may appear stable because many listings are stale or overpriced properties that do not actually sell.
Precise months-of-supply data is not officially published for Lisbon, but based on listing turnover and survey signals, desirable central neighborhoods behave like a 3 to 4 month supply, which is below the 5 to 6 months typically associated with a balanced market.
The main reason inventory stays tight is that new construction cannot scale fast enough in the areas people want to live, and existing owners are reluctant to sell and lose favorable mortgage rates locked in at lower levels.
Are homes selling faster in Lisbon as of 2026?
As of early 2026, the median time-to-sell for homes in Lisbon is not speeding up across the board, but properly priced, well-presented apartments in core neighborhoods still transact efficiently within a few weeks.
Year-over-year, selling times have stabilized or even lengthened slightly for overpriced or compromised units, while liquidity-strong areas like Avenidas Novas, Alvalade, and Parque das Nacoes continue to see steady turnover for quality stock.
Are new listings slowing down in Lisbon as of 2026?
As of early 2026, we do not have high-confidence data on year-over-year new listing changes for Lisbon, but structural factors suggest new listing flow remains constrained by ownership patterns and limited new construction.
Lisbon's seasonal pattern typically sees fewer new listings in winter months like January and a pickup in spring, so current levels may appear low partly due to seasonality rather than a fundamental shift.
The most plausible reason new listings are not surging is that existing owners with favorable mortgage rates have little incentive to sell, and new supply from construction takes years to reach the market.
Is new construction failing to keep up in Lisbon as of 2026?
As of early 2026, new housing construction in Lisbon is clearly failing to keep up with household demand, which is why prices and rents remain elevated despite years of strong investment interest.
The recent trend in building permits for Lisbon shows growth, with the Greater Lisbon area recording the strongest increases in permits and completions, but the absolute numbers still fall short of what the city needs to meaningfully ease the shortage.
The single biggest bottleneck limiting new construction in Lisbon is the combination of land scarcity in desirable areas, slow permitting processes, and high construction costs that make mid-market projects economically challenging.
We made this infographic to show you how property prices in Portugal compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Will it be easy to sell later in Lisbon as of 2026?
Is resale liquidity strong enough in Lisbon as of 2026?
As of early 2026, resale liquidity in Lisbon is strong for mainstream property types, meaning a well-priced apartment in a good neighborhood will reliably find a buyer within a reasonable timeframe.
The median days-on-market for resale homes in Lisbon's core neighborhoods is estimated at 30 to 60 days for properly priced units, which compares favorably to a healthy liquidity benchmark of under 90 days.
The property characteristic that most improves resale liquidity in Lisbon is location in a transit-connected, walkable neighborhood like Alvalade, Campo de Ourique, or Parque das Nacoes, combined with a good energy rating and turnkey condition.
Is selling time getting longer in Lisbon as of 2026?
As of early 2026, selling time in Lisbon has stabilized compared to last year for quality stock, but has lengthened for overpriced units, properties with poor energy ratings, or those in less desirable locations.
The current median days-on-market in Lisbon ranges from around 30 days for well-priced central apartments to 90 days or more for compromised units or premium properties priced above market.
One clear reason selling time can lengthen in Lisbon is affordability pressure: when mortgage rates or prices rise faster than incomes, fewer buyers can qualify, which slows turnover for higher-priced segments.
Is it realistic to exit with profit in Lisbon as of 2026?
As of early 2026, the likelihood of selling a Lisbon property with a profit is medium to high if you hold for at least 5 years and buy in a liquidity-strong neighborhood at a fair price.
The minimum holding period that most often makes exiting with profit realistic in Lisbon is around 5 to 7 years, which allows time for capital appreciation to cover transaction costs and potential market fluctuations.
Total round-trip costs in Lisbon, including buying costs like IMT transfer tax, stamp duty, notary fees, and selling costs like agency commission, typically amount to around 10% to 12% of the property value, or roughly 35,000 to 45,000 euros on a 400,000 euro purchase (about 40,000 to 50,000 USD).
The factor that most increases profit odds in Lisbon is buying below market through negotiation or targeting undervalued units that need cosmetic improvements, because your margin for appreciation starts higher from day one.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Lisbon, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Statistics Portugal (INE) | Portugal's official statistics agency providing verified housing and economic data. | We used INE for official house price indices, bank appraisals, rent medians, and construction permits. We treated their data as the baseline for validating all other sources. |
| idealista | Portugal's largest property portal with consistent methodology and frequent updates. | We used idealista for current asking prices, rent levels, and listing behavior. We cross-checked their data against INE to ensure alignment between listings and actual transactions. |
| Banco de Portugal | Portugal's central bank that sets and monitors mortgage lending standards. | We used Banco de Portugal to understand credit constraints like LTV and DSTI caps. We applied their rules to assess crash risk and buyer affordability limits. |
| European Central Bank (ECB) | The eurozone's top authority on monetary policy and credit-cycle risk. | We used ECB data for mortgage rate trends and macroprudential context. We combined this with Banco de Portugal rules to assess financing conditions in Lisbon. |
| Confidencial Imobiliario | A recognized Portuguese housing data specialist widely cited by major media. | We used Confidencial Imobiliario as a second lens on price momentum and supply tightness. We validated their trends against INE before drawing conclusions. |
| RICS-CI Survey | A systematic, repeated survey from a global professional body tracking market sentiment. | We used the RICS-CI survey to judge buyer versus seller market signals for Greater Lisbon. We treated it as directional and validated with INE transaction data. |
| Global Property Guide | Transparently cites ECB data and publishes mortgage rate series in a usable format. | We used Global Property Guide for mortgage rate history and yield comparisons. We applied their data to stress-test affordability under different rate scenarios. |
| Metropolitano de Lisboa | The official metro operator publishing scope and status of expansion works. | We used their expansion page to identify infrastructure projects and map them to neighborhoods. We tied this to potential property value impacts near new stations. |
| JLL Research | A global real estate services firm with comprehensive market intelligence capabilities. | We used JLL Research for supply pipeline estimates and market commentary. We combined their insights with INE data to validate construction trends. |
| Reuters | A credible news agency that explicitly attributes numbers to underlying datasets. | We used Reuters for policy direction and supply-side reporting. We only accepted numbers when they clearly cited government or CI sources. |
| DLA Piper | A top-tier law firm explaining legal texts and effective dates for property regulations. | We used DLA Piper to understand short-term rental rule changes and their impact on buyer demand. We treated their analysis as interpretation and verified direction with official moves. |
| Euronews | A major European news outlet providing coverage of housing market trends. | We used Euronews for context on Portugal's position among EU housing markets. We validated their claims against INE and Eurostat data. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Portugal. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.