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Property prices in Lisbon are surging, reaching €5,642 per square meter in June 2025.
Lisbon's real estate market continues its upward trajectory with a 7.2% annual increase, making it 25% more expensive than Madrid and establishing itself as the priciest residential market in the Iberian Peninsula.
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 property prices hit a record €5,642/m² in June 2025, marking a 7.2% annual increase and 5.9% quarterly growth.
Emerging neighborhoods like Marvila (+23.2%) and Lumiar (+15.7%) lead price growth, while apartments outperform houses with a 15.2% yearly surge.
| Key Metric | Value | Trend |
|---|---|---|
| Average Price (June 2025) | €5,642/m² | ↑ 7.2% YoY |
| Prime District Prices | €10,000-12,666/m² | ↑ Steady growth |
| Fastest Growing Area | Marvila | ↑ 23.2% YoY |
| Mortgage Rates | 3-3.3% | ↓ ECB cut |
| Foreign Buyer Share | 40% | → Stable |
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.
What are the current average property prices in Lisbon as of June 2025?
As we reach mid-2025, Lisbon's residential property market shows average prices between €5,000 and €6,425 per square meter, with the median price hitting €5,642/m² - the highest ever recorded for the city.
Central and prime districts like Avenida da Liberdade, Chiado, and Príncipe Real consistently exceed €6,000/m², with luxury new-builds in these areas commanding €10,000 to €12,000 per square meter. The citywide average for new construction stands at approximately €8,520/m², while the luxury segment tops out at €12,666/m² in the most exclusive neighborhoods.
These price levels represent a significant milestone for Lisbon's property market, establishing it as one of Europe's most expensive capitals relative to local incomes. The variation in prices across different neighborhoods creates opportunities for buyers at various budget levels, though affordability remains a pressing concern for local residents.
The sustained high prices reflect strong demand from both domestic and international buyers, combined with limited supply in key areas. Property investors looking at Lisbon's market in June 2025 face a competitive environment where quality properties in desirable locations command premium prices.
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How much have Lisbon property prices increased over the past year?
Lisbon's residential property prices have risen by 7.2% year-on-year as of June 2025, slightly below Portugal's national average of 8.1%.
The first quarter of 2025 saw particularly strong growth with a 5.9% quarterly increase - the highest quarterly jump in eight years. This acceleration follows a more moderate 2024, when annual growth was 5.5%, down from 6.3% in 2023. The recent surge indicates renewed momentum in Lisbon's property market.
| Period | Price Growth | Notes |
|---|---|---|
| Q1 2025 | 5.9% | Highest quarterly increase in 8 years |
| 2024-2025 (YoY) | 7.2% | Lisbon annual growth |
| 2024 Annual | 5.5% | Slower than 2023 |
| 2023 Annual | 6.3% | Pre-slowdown rate |
| National Average 2025 | 8.1% | Portugal overall |
Within the broader national context, Portugal's property prices have surged 15.8% year-on-year in 2025, with Lisbon maintaining its position as the country's price leader despite slightly lower growth rates than some emerging markets. The capital's mature market shows more stable, sustainable growth patterns compared to rapidly developing regions.
These consistent price increases demonstrate the resilience of Lisbon's property market, driven by sustained demand from multiple buyer segments including locals upgrading homes, foreign investors, and lifestyle migrants attracted to Portugal's quality of life.
Which Lisbon neighborhoods are experiencing the highest property price growth in 2025?
Marvila leads Lisbon's property price growth with an impressive 23.2% annual increase, followed by Lumiar at 15.7% and Ajuda at 13.7%.
The emerging neighborhoods dominate the growth rankings, with previously overlooked areas now attracting significant investor interest. Benfica shows 8.8% growth, while Olivais and Alcântara both register around 7.5% increases. These neighborhoods benefit from ongoing urban regeneration projects, improved transport links, and relative affordability compared to prime central districts.
Traditional prime areas like Campo de Ourique (6.5%), Avenidas Novas (6.1%), and Estrela (5.9%) continue growing but at more moderate rates, reflecting their already elevated price bases. The luxury districts of Avenida da Liberdade, Chiado, and Príncipe Real maintain the highest absolute prices but show lower percentage growth due to market maturity.
| Neighborhood | Price per m² (2025) | Annual Growth |
|---|---|---|
| Marvila | €5,687 | +23.2% |
| Lumiar | €5,356 | +15.7% |
| Ajuda | €5,479 | +13.7% |
| Benfica | €4,736 | +8.8% |
| Alcântara | €6,506 | +7.5% |
This pattern reveals a clear trend: investors and homebuyers are increasingly looking beyond traditional prime areas to find value and growth potential in Lisbon's emerging neighborhoods, driving rapid appreciation in these previously undervalued districts.
What property types are seeing the biggest price surges in Lisbon?
Apartments in Lisbon registered a remarkable 15.2% value increase year-on-year, significantly outpacing houses which grew by 9.3%.
Luxury units and new builds consistently command the highest prices and strongest appreciation rates, especially in central and riverside neighborhoods. New construction averages €8,520/m² citywide, with premium developments in prime locations reaching €10,000-12,000/m². These properties attract both international buyers seeking quality and local purchasers looking for modern amenities.
Energy-efficient and sustainable properties represent a growing segment experiencing above-average price appreciation. Government incentives for green renovations and increasing demand from eco-conscious buyers drive values higher for properties with superior energy ratings. Properties with A or B energy certificates typically command 10-15% premiums over comparable units with lower ratings.
Studio and one-bedroom apartments in central locations show particularly strong performance, driven by demand from young professionals, investors targeting the rental market, and buyers seeking pied-à-terres. These smaller units offer relatively affordable entry points to Lisbon's property market while delivering strong rental yields of 5.65-6.7%.
The renovation market also thrives, with fully renovated apartments in historic buildings achieving price premiums of 20-30% over unrenovated units in the same areas. This trend reflects buyer preferences for move-in ready properties that combine traditional architectural features with modern comforts.
How do current Lisbon property prices compare to five years ago?
Lisbon property prices have nearly doubled over the past five years, surging from approximately €3,000-3,500/m² in 2020 to €5,642/m² median in June 2025.
This represents a total five-year increase of 60-100% depending on the property type and location, with luxury segments and prime neighborhoods seeing the highest appreciation. Some areas have experienced price doubling, particularly those benefiting from urban regeneration projects or improved infrastructure.
The dramatic price evolution reflects multiple factors including sustained foreign investment, limited housing supply, economic recovery post-pandemic, and Lisbon's growing international profile as a tech hub and lifestyle destination. Within the broader Portuguese context, housing prices nationally rose 120% from 2012 to 2022, with the momentum continuing through 2025.
Prime districts that commanded €5,000-6,000/m² in 2020 now regularly exceed €10,000/m², while emerging neighborhoods that traded at €2,000-2,500/m² five years ago now approach €5,000/m². This rapid appreciation has created significant wealth for existing property owners while presenting affordability challenges for new market entrants.
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What are the property price forecasts for Lisbon through 2026?
Property prices in Lisbon are expected to rise by 3-7% over 2024 values through 2025, with continued but more moderate growth anticipated into 2026.
Medium-term projections suggest the market will maintain its upward trajectory but at a more sustainable pace as new supply gradually comes online and affordability constraints impact demand. Several major residential developments scheduled for completion in 2025-2026 should add approximately 900 new units to Lisbon's housing stock, helping to balance supply and demand dynamics.
Long-term fundamentals remain strongly positive due to sustained international demand, Lisbon's limited buildable land, and the city's continuing appeal to remote workers, retirees, and investors. Government initiatives aimed at improving housing affordability may gradually cool speculation but are unlikely to trigger significant price corrections before 2026.
Market analysts predict that while double-digit annual growth rates may become less common, Lisbon's residential property market will continue appreciating at rates exceeding inflation and wage growth. The combination of lifestyle appeal, economic stability, and investment potential ensures continued upward pressure on prices through 2026 and beyond.
Investors and homebuyers planning for 2026 should expect prices 10-15% higher than current levels, with premium properties and emerging neighborhoods potentially seeing stronger appreciation.
How has the 2024 Golden Visa reform affected Lisbon property prices?
The Golden Visa reform implemented in 2023-2024, which ended real estate investment eligibility for residency in Lisbon and other major cities, has not triggered the price correction many anticipated.
While the immediate impact included a reduction in speculative foreign buying in the luxury segment, overall demand remains robust. Non-Golden Visa foreign buyers, digital nomads, and lifestyle migrants continue driving approximately 40% of Lisbon's property transactions. US and UK nationals dominate this buyer segment, with increasing participation from Asian investors.
The reform successfully shifted some investment pressure away from residential real estate toward other qualifying investments, but Lisbon's fundamental supply-demand imbalance persists. Many foreign buyers who previously might have pursued Golden Visas now invest in Portuguese property purely for lifestyle or investment returns, maintaining market momentum.
Rather than cooling the market, the reform has created a healthier buyer mix with less speculation and more genuine long-term investors. Property prices continue their upward trajectory, supported by strong fundamentals including limited supply, continued international appeal, and Portugal's favorable tax regime for foreign residents.
Market data from June 2025 confirms that the Golden Visa reform's impact on prices has been minimal, with growth rates remaining consistent with pre-reform trends.
What impact are current ECB interest rates having on Lisbon's property market?
The European Central Bank's recent 25 basis point rate cut has lowered mortgage rates in Portugal to an average of 3-3.3%, with variable rates around 3.2%.
Lower borrowing costs are boosting affordability slightly and supporting continued demand, particularly among domestic buyers who rely heavily on mortgage financing. The rate reduction makes monthly payments more manageable, allowing buyers to afford higher property prices or freeing up income for other expenses.
However, the impact remains limited due to Lisbon's elevated property prices. Even with lower interest rates, many local buyers struggle to afford homes in central areas, with the price-to-income ratio remaining among Europe's highest. The rate cut helps stabilize the market and prevents a potential slowdown but isn't sufficient to reverse the upward price trend.
Foreign cash buyers, who represent a significant portion of Lisbon's market, remain largely unaffected by interest rate changes. Their continued participation ensures sustained demand regardless of financing conditions. For property investors, the combination of lower financing costs and rental yields of 5.65-6.7% in the Lisbon Metro Area creates attractive investment opportunities.
Market analysts expect the ECB's accommodative stance to continue supporting Lisbon's property market through 2025-2026, preventing any significant price corrections while maintaining steady growth momentum.
How does foreign investment currently influence Lisbon property prices?
Foreign buyers account for approximately 40% of property transactions in Lisbon as of June 2025, maintaining consistent influence despite the Golden Visa reform.
US and UK nationals dominate the foreign buyer segment, attracted by Portugal's lifestyle, climate, favorable tax regimes, and relative affordability compared to other Western European capitals. Asian investors show increasing activity, diversifying the international buyer base beyond traditional Anglo-American purchasers.
The digital nomad and remote worker segment represents a growing portion of foreign demand, with Portugal's digital nomad visa and tech-friendly policies attracting location-independent professionals. These buyers typically seek properties in trendy neighborhoods like Príncipe Real, Santos, and Cais do Sodré, driving prices higher in these areas.
Persistent foreign demand continues exerting upward pressure on prices, especially in prime and emerging neighborhoods. International buyers often have higher budgets than locals and frequently purchase with cash, making them attractive to sellers and enabling them to outbid domestic buyers in competitive situations.
It's something we develop in our Portugal property pack.
This sustained international interest ensures Lisbon's property market remains resilient to local economic fluctuations while contributing to affordability challenges for Portuguese residents.
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.
What economic indicators are driving Lisbon property price growth in 2025?
Lisbon's GDP is projected to grow by 1.8% in 2025, outpacing Portugal's national average and supporting continued property price appreciation.
Construction activity shows positive momentum with a 4.9% increase in newly licensed homes in 2024, and approximately 900 new units expected for delivery in Lisbon during 2025. However, this supply increase remains insufficient to meet demand, maintaining upward pressure on prices.
Mortgage lending surged 37% in 2024 while property values increased 13.7% year-on-year, indicating strong buyer confidence and financial sector support for real estate transactions. Banks show willingness to lend despite elevated prices, recognizing property as a solid asset class.
Rental yields averaging 5.65-6.7% in the Lisbon Metro Area attract investors seeking income-generating assets. These yields, combined with capital appreciation potential, make Lisbon property investments compelling compared to low-yielding traditional investments like bonds or savings accounts.
Additional supporting factors include Portugal's political stability, EU membership benefits, growing tourism sector, and expanding tech industry presence. These economic fundamentals create a favorable environment for sustained property price growth through 2025 and beyond.
How does Lisbon's property supply and demand balance look in mid-2025?
Demand significantly outpaces supply in Lisbon's residential property market as of June 2025, creating persistent upward pressure on prices.
New construction is rising but remains well below requirements, especially for quality affordable housing. The 900 new units expected in 2025 represent a fraction of the demand from local buyers, expatriates, digital nomads, and foreign investors combined. This structural imbalance ensures continued price appreciation across all market segments.
Approximately 15% of Lisbon's housing stock sits empty, but most vacant properties remain unavailable due to legal complications, poor condition requiring substantial renovation, or owners holding properties as investments without intention to sell or rent. This reduces effective supply even further.
The rental market faces similar constraints, with demand for both short-term tourist rentals and long-term residential leases exceeding available inventory. Many property owners prefer lucrative short-term rentals over traditional leasing, further limiting supply for residents and driving up long-term rental prices.
Until significant new supply enters the market or demand moderates substantially, Lisbon's property prices will continue their upward trajectory. Current development pipelines suggest supply constraints will persist through 2026 at minimum.
How do Lisbon property prices compare to other European capitals in 2025?
Lisbon's median property price of €5,642/m² in June 2025 makes it 25% more expensive than Madrid and 27% higher than Barcelona.
| City | Median Price per m² (June 2025) | Difference vs Lisbon |
|---|---|---|
| Lisbon | €5,642 | - |
| San Sebastián | €5,461 | -3.2% |
| Madrid | €4,514 | -25% |
| Barcelona | €4,430 | -27.4% |
| Valencia | €3,200 (est) | -43.3% |
Lisbon has established itself as the most expensive residential property market in the Iberian Peninsula, surpassing traditionally pricier Spanish cities. This positioning reflects the city's international appeal, limited supply, and sustained foreign investment flows that Spanish cities have not matched since implementing their own restrictions on foreign buyers.
Among broader European capitals, Lisbon remains more affordable than London, Paris, or Zurich but has closed the gap significantly over the past five years. The city now competes directly with secondary Western European capitals like Vienna, Copenhagen, and Amsterdam in terms of prime property pricing.
This price positioning creates an interesting dynamic where Lisbon offers a lower cost of living than Northern European capitals while commanding property prices that approach these more expensive markets. For investors and lifestyle buyers, Lisbon represents a premium market within Southern Europe but remains accessible compared to Europe's most expensive cities.
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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.
Yes a lot - Lisbon property prices are experiencing significant growth with a 7.2% annual increase and record-high median prices of €5,642/m² as of June 2025.
The market shows remarkable resilience with emerging neighborhoods like Marvila seeing 23% growth, while traditional prime areas maintain steady appreciation. Foreign investment remains strong at 40% of transactions despite Golden Visa reforms, and ECB rate cuts support continued demand. With prices nearly doubled over five years and forecasts predicting 3-7% annual growth through 2026, Lisbon's property market demonstrates sustained upward momentum driven by limited supply, international appeal, and solid economic fundamentals.
Sources
- Tagus Property - Real Estate Market Lisbon
- LinkedIn - Lisbon Real Estate Market Overview May 2025
- InvestRopa - Portugal Price Forecasts
- The Portugal News - Lisbon Property 25% More Expensive Than Madrid
- Essential Business - Lisbon Registers Highest House Price Hike in Eight Years
- Bleisured - The Real Estate Market in Lisbon
- Get Golden Visa - Portugal Golden Visa Program
- Roca Estate - Portugal's Real Estate Market ECB Rate Cut
- Portugal Homes - Investing Portugal Real Estate
- Idealista - Real Estate in Lisbon Market Trends 2025