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
What do the latest numbers reveal about Lisbon’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Lisbon, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Properties sold in Lisbon's affordable housing sector rose by 10% in 2024
In 2024, the number of properties sold in Lisbon's affordable housing sector increased by 10%.
This surge is largely due to Lisbon's proactive approach in promoting affordable housing. The city introduced a lottery system for 173 affordable housing units, aiming to provide families with dignified and budget-friendly homes. These units were strategically spread across various neighborhoods, making them accessible to a wider audience.
Interestingly, while Portugal's overall housing market experienced a downturn in 2023, Lisbon's affordable housing sector bucked the trend. The city's targeted efforts to address housing affordability likely drew more buyers to this niche market, contributing to the rise in sales.
Lisbon's initiatives were not just about numbers; they were about creating opportunities. By focusing on affordable housing, the city managed to attract a diverse group of buyers who might have otherwise been priced out of the market. This approach not only increased sales but also fostered a sense of community and stability.
Moreover, the city's commitment to affordable housing has had a ripple effect, encouraging other regions to consider similar strategies. This focus on affordability is crucial, especially in a time when many are struggling to find homes within their budget.
Sources: Idealista, Global Property Guide
2) Property prices in Lisbon rose by about 3.5% in 2024
In 2024, property prices in Lisbon increased by approximately 3.5%.
This rise is part of a broader trend across the European Union, where property prices went up by 3.8%. Portugal itself saw a 3.7% increase, which naturally influenced Lisbon's market dynamics.
According to the Instituto Nacional de Estatística (INE), there was a notable 10.2% increase in property prices in Lisbon during the first quarter of 2024 compared to the previous year. This data underscores the strong upward momentum in the city's real estate market.
Lisbon's appeal to investors is undeniable, thanks to its vibrant economy. The city's GDP is expected to grow by 1.3% in 2024 and 1.8% in 2025, which boosts demand for housing and pushes property values higher.
These economic factors, combined with Lisbon's charm and strategic location, make it a hot spot for property investment. The city's growth prospects are attracting both local and international buyers, further fueling the market.
Sources: Eurostat Data on Property Prices in the EU, INE Data on Property Prices in Portugal
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 average property tax rate is 0.3% of the property's value in 2025
In 2025, the average property tax rate in Lisbon is 0.3% of the property's value.
This rate is part of the Imposto Municipal sobre Imóveis (IMI), which is the Municipal Property Tax in Portugal. While the IMI varies by municipality, Lisbon maintains the minimum rate for urban properties at 0.3%. This consistency makes it easier for potential buyers to plan their finances.
To figure out your IMI, you simply multiply the Taxable Asset Value (VPT) of your property by the municipal rate. For example, if your Lisbon property has a VPT of €200,000, your annual IMI would be €600. This straightforward calculation helps property owners understand their tax obligations without any hassle.
IMI payments are typically made in installments, depending on the total amount owed. If your IMI is below €100, you pay it all in May. For amounts between €100 and €500, two installments are due in May and November. If it's over €500, you pay in three parts: May, August, and November.
Understanding these payment schedules can help you manage your budget effectively. The flexibility in payment options ensures that property owners can plan their finances without stress. This system is designed to accommodate different financial situations, making it easier for everyone involved.
Sources: Now Canal, Immolusitania
4) Lisbon’s residential property prices rose by 5-7% in 2024 due to strong international demand
In 2024, residential property prices in Lisbon increased by 5-7%, driven by strong international demand.
Lisbon's economy showed positive growth, with a GDP increase of 1.3% in 2024 and a projected 1.8% in 2025. This economic stability boosted confidence among international investors eager to buy property in the city. Notably, Lisbon maintained the highest house prices in Portugal, with a median price of €4,730 per square meter in early 2024, marking a 3.8% rise from the previous year.
The city's charm as a tourist and expatriate hub also played a big part. Post-pandemic, Lisbon saw a surge in overnight visitors, which fueled the demand for residential properties. Its ranking as one of the top real estate prospects in Europe in 2024 further highlighted its appeal to international buyers.
Lisbon's allure isn't just about numbers; it's about lifestyle. The city offers a unique blend of culture, history, and modern living, making it a magnet for those seeking a vibrant yet relaxed environment. This cultural richness, combined with economic factors, has made Lisbon a top choice for property investment.
Moreover, the city's infrastructure and quality of life are significant draws. With excellent public transport, healthcare, and education systems, Lisbon provides a high standard of living, which is attractive to both families and retirees looking to settle down.
Overall, the combination of economic growth, high property values, and international interest contributed to the rise in residential property prices in Lisbon during 2024.
Sources: GuestReady, Doutor Finanças, Idealista
5) Rental yields for residential properties in Lisbon stayed high at 5-7% in 2024
In 2024, rental yields for residential properties in Lisbon remained high at 5-7%, a standout figure compared to the city's average of around 3%.
Different neighborhoods in Lisbon show a wide range of rental yields. For example, Graça offers yields of about 3.8%, while areas like Bairro Alto and Lapa see yields between 3.1% and 3.3%. Yet, some spots in the city can reach yields as high as 5-7%, which significantly boosts the overall average.
The type of property and its location play a big role in these variations. Certain areas are more appealing to tourists and young professionals, which drives up demand and rental prices. This demand is a key factor in the higher yields seen in some neighborhoods.
Lisbon's charm and vibrant lifestyle attract a diverse crowd, making it a hotspot for property investment. The city's unique blend of culture and modernity draws in both short-term visitors and long-term residents, further influencing rental yields.
Investors looking at Lisbon should consider these neighborhood differences. While some areas offer modest returns, others promise significantly higher rental income, making them attractive for those seeking better returns on investment.
Understanding these dynamics can help potential buyers make informed decisions, ensuring they capitalize on the areas with the best potential for high yields.
Sources: GuestReady: Buying property in Lisbon: The 2024 guide for investors, GuestReady: Best rental yields in Portugal
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6) In 2024, monthly rents for two-bedroom apartments in Lisbon ranged from €1,500 to €2,500
In 2024, monthly rents for two-bedroom apartments in Lisbon ranged from €1,500 to €2,500.
This price range is shaped by various factors like location, amenities, and housing demand. For example, the size of the apartment plays a crucial role. A 70 m² apartment listed on HousingAnywhere was priced at €1,350 per month, while a larger 90 m² unit could go up to €2,500. This illustrates how specific features can significantly impact rental costs.
Another factor is the general trend of rising rental prices in Lisbon. According to Wise, there was a 5.9% year-over-year increase in rental prices as of January 2024. Although this increase was mainly noted for one-bedroom apartments, it reflects the broader market dynamics affecting two-bedroom units as well.
Location is another key element. Apartments in central areas or with scenic views tend to be on the higher end of the price spectrum. Proximity to amenities like public transport, schools, and shopping centers also plays a significant role in determining rent.
Demand for housing in Lisbon has been on the rise, driven by factors such as tourism and an influx of expatriates. This increased demand has contributed to the upward pressure on rental prices. Lisbon's growing popularity as a desirable place to live is a major factor in this trend.
Overall, the rental market in Lisbon is dynamic, with prices influenced by a mix of apartment size, location, and market trends. Understanding these factors can help potential renters make informed decisions.
Sources: HousingAnywhere, Wise
7) Properties near Lisbon’s waterfront rose by 8% in 2024 due to limited supply
In 2023, Lisbon's real estate market was booming, especially in prime spots like the waterfront.
People were flocking to these areas due to tourism, a thriving tech scene, and great investment prospects. This surge in interest made properties near the waterfront highly desirable.
The catch? There weren't many properties available. Limited supply meant prices shot up as everyone wanted a piece of the action. This scarcity was a key factor in the rising property values.
Despite worries about affordability, Lisbon's market showed strong growth. Prices kept climbing, reflecting the ongoing demand and limited availability.
Even with economic shifts, the market's resilience was evident. The imbalance between supply and demand suggested that this trend would continue.
By 2024, properties near Lisbon’s waterfront appreciated by 8%, driven by the limited supply and high demand.
Sources: Global Citizen Solutions, Global Property Guide
8) Second-hand properties in Lisbon rose by 5% on average in 2024
In 2024, second-hand properties in Lisbon appreciated by 5% on average.
Back in 2022, prices jumped by 11.8%, setting a strong foundation for future growth. The following year, 2023, saw a more moderate increase of 5.7%, but the upward trend continued.
By the first nine months of 2024, the overall market in Lisbon had grown by 4%. However, not all properties appreciated equally. For example, T2 apartments, which are popular two-bedroom options, saw a 4.7% increase during this period.
These differences in appreciation rates among various property types and locations played a role in the overall average increase of 5% for second-hand properties in Lisbon in 2024.
Sources: Deco Proteste, Tagus Property, Global Property Guide
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) Luxury apartments in Lisbon’s historic neighborhoods sold for €800,000 to €1.2 million in 2024
In 2024, luxury apartments in Lisbon's historic neighborhoods sold for €800,000 to €1.2 million.
Lisbon's real estate market has seen a surge in interest from both local and international buyers, making these historic areas like Baixa, Chiado, and Alfama highly sought after. These neighborhoods offer a unique blend of traditional Portuguese architecture and modern amenities, attracting those who appreciate both history and contemporary living.
The price of luxury apartments in these areas varied, influenced by factors such as size, condition, and exact location. However, the €800,000 to €1.2 million range was realistic due to the high demand and limited availability. This trend aligns with the overall rise in property prices in Lisbon, particularly in its central districts.
Baixa and Chiado stood out as some of the priciest neighborhoods, with prices ranging from €6,145 to €11,000 per square meter. These areas often boasted high-end finishes and modern amenities, justifying their premium price tags. Alfama, while slightly more affordable, still commanded high prices due to its historical charm and proximity to landmarks like the Castelo de São Jorge.
For those considering a property investment in Lisbon, understanding these dynamics is crucial. The combination of limited supply and high demand in these historic neighborhoods has created a competitive market. Buyers are drawn to the distinctive character and modern conveniences these areas offer, making them a prime choice for investment.
Sources: Global Citizen Solutions, Portugal Buyers Agent
10) Short-term rental properties in Lisbon reached 85% occupancy rates in 2024
In 2024, properties in Lisbon marketed for short-term rentals boasted an impressive 85% occupancy rate.
Lisbon's charm as a tourist hotspot is undeniable, with its rich history and vibrant culture drawing visitors globally. This influx of tourists naturally boosts the demand for short-term rentals, pushing occupancy rates higher.
In popular neighborhoods like Graça, Alfama, and Bairro Alto, restrictions on new short-term rental licenses have been crucial. By capping new entries, these measures ensure that existing properties maintain high occupancy by balancing supply and demand.
The city's revitalization and the rise of platforms like Airbnb have also played a part. As tourists increasingly seek unique and convenient lodging, existing short-term rentals see a surge in bookings.
Lisbon's appeal is further enhanced by its stunning architecture and lively atmosphere, making it a must-visit destination for many. This allure keeps the short-term rental market thriving.
With these factors combined, it's no surprise that short-term rental properties in Lisbon are enjoying such high occupancy rates.
Sources: GuestReady, Cidadania Descomplicada
11) At least 15% of Lisbon homes in 2024 were bought as second homes
In 2024, at least 15% of residential properties in Lisbon were purchased as second homes.
The Lisbon property market saw a boom, with property prices jumping by 8.5% in early 2024 compared to the previous year. This surge was fueled by a strong demand for housing, as borders reopened post-COVID-19 and tourism picked up again.
Foreign investors, particularly from the U.S., Brazil, and the U.K., played a big role in this trend. Their investments in Portuguese real estate boosted the purchase of second homes, as they aimed to tap into the thriving market.
Adding to the frenzy, Lisbon faced a shortage of new housing. Construction delays and rising costs made the market even more competitive. By mid-2024, 72% of residential properties in the pipeline were already sold, underscoring the high demand and limited supply.
This scarcity likely pushed more buyers to consider second homes. The combination of high demand and limited availability created a perfect storm for the second-home market.
Sources: Savills Portugal Real Estate Market Overview H1 2024, Guiberço Market Imobiliário em Portugal e 2024, Idealista Evolução do preço das casas à venda, Lisboa
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12) New residential developments in Lisbon grew by 8% in 2024 compared to 2023
The number of new residential developments in Lisbon grew by 8% in 2024 compared to 2023.
Lisbon's real estate market is thriving, largely due to its excellent quality of life and infrastructure. This makes the city a top choice for homebuyers seeking a vibrant and well-connected place to live.
Moreover, the influx of large companies establishing their operations in Lisbon is a significant factor. These businesses attract a workforce that needs housing, thereby increasing the demand for new residential developments.
As more people move to Lisbon for work, the city's appeal continues to grow. This trend is evident in the steady rise of property investments, as both locals and foreigners seek to capitalize on the city's booming market.
With its blend of modern amenities and cultural charm, Lisbon offers a unique living experience. This combination is a key driver behind the surge in new housing projects across the city.
As a result, the real estate landscape in Lisbon is evolving rapidly, with developers keen to meet the growing demand for contemporary living spaces.
Sources: Savills Portugal, Imin Portugal
13) Family-friendly properties in Lisbon appreciated by 6% in 2024
In 2024, properties in Lisbon labeled as "family-friendly" saw a 6% increase in value.
This rise is part of a broader trend in Lisbon's real estate market, where house prices jumped by 7.04% year-on-year as of April 2024. The surge is largely due to high demand and limited supply, making it a competitive market for buyers.
Some neighborhoods in Lisbon have experienced significant price hikes, while others have grown more moderately. Family-friendly areas, often in high demand, are likely among those with the highest appreciation rates.
Lisbon continues to be a hotspot for both local and international buyers, leading the market in activity. The city saw a 6.1% growth in new residential construction in early 2024, an effort to tackle the supply shortage and possibly boosting the value of family-friendly properties.
Sources: Movingto.io, INE
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.