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Yes, the analysis of Lisbon's property market is included in our pack
Thinking about buying a 3-bedroom apartment in Bairro Alto? It’s a vibrant area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods like Chiado or Alfama where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Portugal Property Pack.
Will property prices increase in Lisbon in 2025?
Yes, property prices in Lisbon are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Lisbon remains one of the hottest cities globally for both domestic and international investors.
Sure, there are some economic bumps like inflation and rising interest rates, but the main drivers behind Lisbon’s price growth aren’t going anywhere.
Demand, especially in the prime central areas, still outstrips supply by a mile, making any major price dips a long shot. And let’s not forget—Lisbon’s status as a cultural, financial, and political hub keeps drawing in buyers from around the world.
Signals pointing to a property price increase in Lisbon
Here are some factors suggesting prices could increase:
The ongoing popularity of Lisbon as a tourist destination continues to attract international buyers, particularly those interested in short-term rental investments, which is expected to keep demand high and push property prices upward.
Lisbon's strategic location and growing reputation as a tech hub are attracting more companies and expatriates, increasing demand for both residential and commercial properties.
Government initiatives aimed at urban regeneration and infrastructure improvements, such as the expansion of public transport networks, are likely to enhance property values in the city.
The limited availability of land for new developments in central Lisbon is expected to maintain a tight supply, contributing to upward pressure on property prices.
The Golden Visa program, which offers residency to non-EU investors, continues to attract foreign investment in Lisbon's real estate market, supporting price growth.
Lisbon's appeal as a lifestyle destination, with its mild climate, rich culture, and vibrant social scene, continues to draw both retirees and young professionals, sustaining demand for housing.
Signals pointing to a property price decrease in Lisbon
Here are some factors suggesting prices could fall:
Economic uncertainties, including potential recessions in key European markets, could impact foreign investment in Lisbon's real estate sector.
Rising interest rates may deter potential buyers, particularly those relying on mortgages, which could slow down the market.
Inflationary pressures and increasing living costs could reduce disposable income for local buyers, potentially dampening demand for property purchases.
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If property prices go up in Lisbon, how much would they increase by?
If real estate prices in Lisbon were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in dynamic markets like Lisbon appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in Chiado for 500,000 euros today, don't be surprised if it's priced between 515,000 and 535,000 euros this time next year.
To give you a better understanding, here is a table that shows 7 types of Lisbon real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (€) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Traditional Apartment (60 sqm / 646 sqft) | €400,000 | €412,000 | €420,000 | €428,000 |
| Modern Apartment (75 sqm / 807 sqft) | €600,000 | €618,000 | €630,000 | €642,000 |
| Luxury Penthouse (100 sqm / 1,076 sqft) | €1,200,000 | €1,236,000 | €1,260,000 | €1,284,000 |
| Studio (30 sqm / 323 sqft) | €200,000 | €206,000 | €210,000 | €214,000 |
| Loft (80 sqm / 861 sqft) | €800,000 | €824,000 | €840,000 | €856,000 |
| Townhouse (150 sqm / 1,615 sqft) | €1,500,000 | €1,545,000 | €1,575,000 | €1,605,000 |
| Investment Property (50 sqm / 538 sqft) | €350,000 | €360,500 | €367,500 | €374,500 |
Everything you need to know is included in our Property Pack for Lisbon
If real estate prices go up in Lisbon, which areas are likely to see the biggest increases?
Today, people who want to move to Lisbon want the charm, but they also want modern conveniences and vibrant social scenes, which Bairro Alto delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Alfama has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Lisbon market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Bairro Alto | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Chiado | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Lisbon. |
| Cais do Sodré | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Parque das Nações | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Campo de Ourique | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Graça | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Príncipe Real | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Alfama | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Avenidas Novas | Medium-High | Its proximity to central Lisbon, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Mouraria | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Estrela | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Baixa | High | Upcoming restoration of historic buildings and high-profile cultural projects are driving a renewed focus on this central, historic location. |
-The best areas to buy a property in Lisbon
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Lisbon?
In 2025, Lisbon real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Lisbon, such as Cascais and Sintra, are seeing increased interest. Proximity to beaches, parks, and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense areas like Lisbon's historic neighborhoods, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Lisbon's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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