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
Why is Lisbon such a standout destination for real estate investment in 2025? Is it the vibrant cultural scene, the growing expat community, or the attractive property prices compared to other European capitals? What are the key advantages for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Lisbon's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
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1) Lisbon’s historic areas are being revitalized, boosting property values
Lisbon's historic neighborhoods are experiencing a revival, boosting property values.
In areas like Alfama and Bairro Alto, property prices have surged due to high demand from both locals and international buyers. This trend is likely to persist as new developments and investments continue to flow into these charming districts.
Massive urban renewal projects, such as the €2 billion Matinha redevelopment and the €650 million Entrecampos development, are transforming old industrial sites into lively urban centers. These projects are not just about new homes; they include green spaces and modern amenities, making these neighborhoods even more appealing to potential buyers.
The booming tourism industry is also playing a role, with a significant portion of housing units being rented out to tourists. This has led to increased rental costs, which in turn boosts property values in these popular areas.
Sources: Euroweekly News, Travel and Tour World, Essential Business
2) Lisbon connects you to the Portuguese-speaking world, making it a hotspot for international business
Lisbon is a key gateway to the Portuguese-speaking world, attracting international business.
Many multinational companies, like Bain & Company, have set up shop in Lisbon, serving both local and international clients since 2022. This shows a strong presence of global businesses in the city. In 2023, foreign direct investment in Portugal hit €180,411 million, with Lisbon receiving more than half of this investment, making it a hot spot for investors, especially from Portuguese-speaking countries.
Lisbon is buzzing with international conferences and business events, especially at the World Trade Center Lisboa. Over two years, these events have drawn in around 2,000 C-level executives and entrepreneurs, highlighting the city's role in global business networking. Government initiatives, like the WTC Lisboa International Academy by ELITE, boost Lisbon's status as a business hub, with backing from partners like BBVA and the Portuguese Family Businesses Association.
Lisbon's strategic location and vibrant atmosphere make it a perfect hub for tapping into Portuguese-speaking markets. The city is also appealing to international entrepreneurs because English is widely spoken among young professionals and business owners.
Sources: Euronext, Citizenship Bay, Portugal Homes, Bain & Company
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.
3) Lisbon’s top-notch healthcare makes it ideal for retirees and families
Lisbon's healthcare system is highly rated, making it a top choice for retirees and families.
Imagine living in a city where hospitals like the Centro Hospitalar de Lisboa Central are ranked among the best globally. This means you have access to top-notch healthcare services right at your doorstep. It's not just about the rankings; it's about the peace of mind knowing you're in good hands.
Portugal stands out in Europe with a higher density of doctors compared to many other EU countries. In 2021, there were 5.6 doctors per 1,000 people, ensuring that both residents and visitors in Lisbon have easy access to medical professionals. This is a big plus if you're considering moving here.
Patient satisfaction is another highlight of Lisbon's healthcare. The system is known for its rapid response times in emergencies and low medical costs for residents. This combination of efficiency and affordability makes healthcare in Lisbon particularly appealing.
For expats and retirees, the affordability of healthcare is a major draw. Compared to many other European cities, healthcare costs in Lisbon are lower, making it an attractive destination for those looking to enjoy their golden years without breaking the bank.
With such a robust healthcare system, it's no wonder Lisbon is becoming a popular choice for families and retirees alike. The city's commitment to providing quality healthcare is evident in its high patient satisfaction rates and the overall accessibility of medical services.
Sources: Global Citizen Solutions, Vive Europe, OECD
4) In Lisbon, you can find more affordable properties than in other European capitals
Lisbon's real estate market is a hidden gem compared to other European capitals.
Imagine buying a property in Lisbon where the average price per square meter is about €4,605. Now, compare that to Paris or London, where prices can skyrocket to €10,000 to €20,000 per square meter. This makes Lisbon a much more budget-friendly option for those looking to invest in property.
Living in Lisbon is also easier on the wallet. A family of four can expect to spend around €3,478 per month on living expenses. In contrast, the same family would need over €6,000 in Paris or London. This significant difference in the cost of living makes Lisbon an attractive place to settle down.
Lisbon's property market has seen a steady, manageable growth, unlike the rapid spikes in cities like Paris and London. This means that while prices have increased, they haven't surged uncontrollably, keeping the market accessible. Plus, with lower property taxes and transaction costs, Lisbon becomes even more appealing to buyers.
For those considering an investment, Lisbon offers a unique blend of affordability and potential. The city's charm, combined with its financial advantages, makes it a smart choice for both local and international buyers. The steady growth and lower costs are not just numbers; they represent a lifestyle that is both enjoyable and sustainable.
Whether you're looking for a new home or an investment opportunity, Lisbon's real estate market offers a compelling case. The affordability, combined with the city's vibrant culture and beautiful landscapes, makes it a standout choice in Europe.
Sources: Expatistan, Seed Real Estate, Portugal Buyers Agent
5) Lisbon’s stunning beaches make nearby properties highly desirable
Lisbon's coastline is famous for its stunning beaches, making nearby properties highly desirable.
Families love areas like Cascais and Sintra because they offer easy access to beaches, parks, and schools. This makes them perfect for those looking to enjoy both nature and convenience.
Property values in these coastal spots are on the rise, showing just how popular they've become. In Lisbon City, the average asking price is €6,009 per square meter, but you can still find good deals in less central or emerging neighborhoods.
Lisbon's charm as a beach destination is undeniable, with over 18.76 million tourists visiting in 2023. Many of these visitors are drawn to the city's beautiful beaches, boosting the demand for properties in these areas.
For those considering a move, Lisbon's coastal properties offer a unique blend of urban living and seaside relaxation. The city's vibrant culture and stunning landscapes make it a top choice for property buyers.
Whether you're looking for a family home or a vacation spot, Lisbon's coastal areas provide a perfect mix of lifestyle and investment potential.
Sources: Road Genius, Portugal Buyers Agent
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6) Lisbon’s popularity as a filming location boosts demand for short-term rentals
Lisbon is a hotspot for filmmakers, drawing numerous productions each year.
The city is buzzing with film crews, thanks to the Lisbon Film Commission's streamlined process for issuing permits. They make it easy for filmmakers to choose Lisbon by regularly updating fees and managing applications efficiently.
Lisbon sweetens the deal by waiving public space and municipal fees for film and TV productions. This financial incentive has turned the city into a magnet for filmmakers, eager to capture its unique charm on screen.
When the cameras roll, the demand for short-term rentals in Lisbon skyrockets. Airbnb hosts see a median occupancy rate of 85%, with properties often booked for most of the year, highlighting the need for temporary housing during filming seasons.
Filmmakers and their crews flock to Lisbon, not just for its picturesque locations but also for the ease of finding accommodations. This influx boosts the local economy and keeps the rental market thriving.
With its vibrant culture and supportive infrastructure, Lisbon continues to be a top choice for international film projects, ensuring a steady stream of visitors and temporary residents.
Sources: Lisbon Film Commission, Airbtics
7) Lisbon’s cultural festivals attract tourists, making it easy to find short-term renters
Lisbon is a cultural hub with numerous festivals, drawing tourists and short-term renters.
In 2023, over 18.76 million tourists visited Lisbon, many timing their trips to coincide with the city's vibrant festival seasons. These events are a major magnet, pulling in visitors eager to soak up the local culture.
During these cultural events, Lisbon's short-term rental market experiences a noticeable boom. According to AirDNA, occupancy rates spike during festival times, showing that tourists love staying in the heart of the action. This demand has led to a rise in property values, especially in neighborhoods rich in culture, where traditional homes are being transformed into vacation rentals.
Local businesses thrive with the influx of festival-goers. Take the Lisbon Tech Fest, for instance, which not only draws tech enthusiasts but also boosts local revenue through increased foot traffic and related activities. This economic boost highlights the festivals' role in attracting both tourists and short-term renters.
For those considering buying property in Lisbon, these trends offer valuable insights. Investing in areas close to popular festival venues could be a smart move, as these neighborhoods are in high demand during peak tourist seasons.
With its rich cultural calendar, Lisbon continues to be a top choice for tourists and property investors alike. The city's dynamic festival scene is a key driver of its thriving short-term rental market.
Sources: Lisbon Tourism Statistics, Lisbon's Short-Term Rental Market: Navigating the Boom in Portugal's Historic Capital, What's New in Portugal for 2025? Top Reasons to Visit Now
8) Lisbon’s booming tech scene draws young professionals, increasing housing demand
Lisbon's tech startup scene is booming, drawing in young professionals who need housing.
With 194 startups, Lisbon hosts nearly half of Portugal's tech ventures, underscoring its pivotal role in the national tech landscape. This vibrant ecosystem is a magnet for innovation and creativity, making it an exciting place for tech enthusiasts.
Venture capital is pouring into the city, with firms like Indico Capital Partners and Faber Ventures backing startups in sectors like fintech and biotech. This influx of investment is not just growing new companies but also attracting international tech talent, positioning Lisbon as one of Europe's fastest-growing tech hubs.
The demand for co-working spaces is soaring, with an 80% occupancy rate in Greater Lisbon. This trend highlights a thriving startup culture, where collaboration and innovation are at the forefront. The city's dynamic environment is perfect for entrepreneurs looking to make their mark.
Government incentives and Lisbon's recognition as the European Capital of Innovation in 2023 have further boosted its allure for tech entrepreneurs. These factors create a supportive environment for startups, making it an attractive destination for those looking to launch or grow their businesses.
Lisbon's tech scene is not just about numbers; it's about a community that's rapidly evolving and adapting. The city's unique blend of culture, innovation, and opportunity makes it a compelling choice for anyone considering a move to a tech-forward city.
Sources: StartupBlink, VC World Summit, The Portugal News, Essential Business, Portugal Buyers Agent
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.
9) Lisbon’s famous food scene attracts tourists, making it easy to rent out your property short-term
Lisbon's culinary scene is making waves globally, boosting tourism and short-term rentals.
In 2024, two new Lisbon restaurants snagged Michelin Stars, including the innovative 2Monkeys, bringing fresh creativity to the city's dining. This recognition is putting Lisbon on the culinary map.
Lisbon was crowned Europe's Best Culinary City in 2024 by the World Culinary Awards, garnering international media attention. This title showcases the city's diverse and top-notch food offerings, drawing food lovers worldwide.
Food tourism is a big hit in Lisbon, fueling Portugal's tourism boom in 2023 with millions of visitors and billions in revenue. The city's lively food scene, alongside its rich culture and history, makes it a must-visit for unique culinary adventures.
Food festivals and culinary events in Lisbon are on the rise, leading to a spike in short-term rental occupancy. This trend is a boon for local businesses and artisans.
Sources: India Outbound, Michelin Guide, ETIAS
10) Lisbon’s focus on renewable energy attracts eco-conscious property buyers
Lisbon is becoming a hotspot for eco-conscious property buyers due to its focus on renewable energy.
The city has ramped up its budget for green projects, with companies like Iberdrola pouring in over 2 billion euros into solar, wind, and storage by the end of 2023. This investment highlights Lisbon's commitment to sustainable energy, making it a prime location for those who value eco-friendly living.
Solar energy is a big deal here. Lisbon has set ambitious targets for solar panel installations, aiming for 8 MW in buildings and 2 MW in centralized systems by 2021. This push for solar power is a testament to the city's dedication to renewable energy, attracting buyers who want to reduce their carbon footprint.
Lisbon's Sustainable Energy and Climate Action Plan (SECAP) is another feather in its cap, with goals to cut carbon emissions significantly. The SOLIS platform, launched in 2019, gets locals involved in the energy system, promoting solar energy and boosting the city's green credentials.
These initiatives are not just about energy; they're about creating a community that values sustainability. The city's efforts in renewable energy make it an attractive option for those looking to invest in a property that aligns with their environmental values.
With such a strong focus on renewable energy, Lisbon is not just a place to live; it's a place to thrive sustainably. The city's ongoing projects and plans are a clear signal to eco-conscious buyers that Lisbon is the place to be.
Sources: Iberdrola, Energy Cities
11) Lisbon’s mild climate makes it a great place to live all year round
Lisbon's climate is mild and inviting all year round.
With a pleasant Mediterranean climate, Lisbon enjoys an average temperature of 17.4°C (63.3°F), making it warmer than many other European capitals. Even in January, the coldest month, temperatures hover between 11 and 19°C (52 to 66°F), while in August, the warmest month, they range from 25 to 32°C (77 to 90°F).
One of the perks of living in Lisbon is the abundance of sunny days. The city basks in about 2,801 hours of sunshine each year. July is the brightest month with 352 hours of sunshine, and even December, the gloomiest month, still offers 141 hours of sunlight.
Lisbon's delightful weather is a magnet for tourists and expats alike. Many surveys and real estate reports highlight that the mild winters and warm summers are major draws for those considering a move or visit. This climate supports a lively scene of outdoor activities and events, from festivals to cultural gatherings, that can be enjoyed year-round.
Imagine sipping coffee at a café terrace in January or enjoying a beach day in August. The consistent warmth and sunshine make Lisbon a perfect spot for those who love the outdoors.
Whether you're looking to relocate or just visit, the appeal of Lisbon's climate is undeniable, offering a comfortable and vibrant lifestyle.
Sources: Weather and Climate, Go With Guide, Wikipedia, Wikipedia
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12) You can save money on property renovations thanks to local government tax incentives
The local government is offering tax incentives for property renovations to tackle the housing crisis.
In 2023 and 2024, the Mais Habitação programme was launched, making it easier to plan renovations and offering tax breaks to encourage these activities. This initiative aims to revamp affordable living for locals, especially in bustling areas like Lisbon. The 2024 State Budget in Portugal introduced tax incentives, including exemptions from property transfer tax and municipal property tax for urban properties undergoing rehabilitation.
These incentives have sparked a noticeable increase in renovation projects across the city. The buzz around these government efforts has been amplified through press releases and media coverage, highlighting the benefits of the tax incentives. This has not only attracted attention but also boosted investment in the local construction and renovation sectors.
For those considering buying property, these incentives could mean significant savings on taxes, making it a more attractive option. The local government’s strategy is clear: by making renovations more financially appealing, they hope to address the housing shortage and improve living conditions.
Insider knowledge suggests that these tax breaks are particularly beneficial for properties in need of major updates, as they can substantially reduce the overall cost of renovation. This is a golden opportunity for potential buyers looking to invest in properties with character and potential.
With the government’s backing, the renovation market is thriving, and this trend is expected to continue as more people take advantage of these incentives. The local government’s proactive approach is reshaping the real estate landscape, making it a prime time to consider property investment in the area.
Sources: PWC Tax Summaries, World Economic Forum, Chambers Practice Guides
13) Lisbon is a top conference city, so short-term rentals are in high demand
Lisbon is now a key European hub for international conferences.
Every year, the city hosts events in diverse fields like statistics, finance, technology, and healthcare, attracting global industry experts and professionals.
During these conference seasons, hotel occupancy rates soar, often hitting between 70% and 75% in 2023, showcasing the city's popularity.
This high demand for accommodations has led to a surge in Airbnb and short-term rental listings, catering to the influx of conference attendees.
Many visitors prefer these short-term rentals for their convenience and flexibility, making them a popular choice over traditional hotels.
Lisbon's reputation as a conference destination continues to grow, further boosting the local rental market and offering lucrative opportunities for property investors.
Sources: International Conference Alerts, The Portugal News
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.