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
Lisbon's real estate market in 2026 is shaped by tight supply, strong international interest, and continued price growth in central neighborhoods.
This guide covers current housing prices in Lisbon, days on market, neighborhood trends, rental demand, and what you need to know before buying.
We constantly update this blog post with the latest Lisbon property data, so you always have access to fresh and reliable figures.
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.
How's the real estate market going in Lisbon in 2026?
What's the average days-on-market in Lisbon in 2026?
As of early 2026, the estimated average days on market for a typical residential property in Lisbon is around 75 days from listing to signed contract, though well-priced homes in high-demand neighborhoods like Estrela or Arroios can sell in 45 to 60 days.
The realistic range for most Lisbon listings spans from about 45 days for competitively priced apartments in sought-after areas to 120 days or more for overpriced properties or those with awkward layouts.
Compared to one or two years ago, days on market in Lisbon have remained relatively stable because supply constraints continue to limit available inventory, keeping turnover times compressed despite some cooling in buyer urgency.
Are properties selling above or below asking in Lisbon in 2026?
As of early 2026, the estimated average sale-to-asking price ratio for residential properties in Lisbon sits between 97% and 101% of the listing price, meaning most buyers negotiate small discounts while some pay full asking or slightly above.
Roughly 15% to 25% of Lisbon properties sell at or above asking price, particularly in supply-constrained central neighborhoods, though our confidence in this range is moderate because transaction-level data remains limited for individual sales.
Property types most likely to see bidding wars and above-asking sales in Lisbon include renovated apartments in prime areas like Santo Antonio, Chiado, and Principe Real, as well as modern units in emerging neighborhoods like Marvila where scarcity meets strong buyer interest.
By the way, you will find much more detailed data in our property pack covering the real estate market in Lisbon.
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.
What kinds of residential properties can I realistically buy in Lisbon?
What property types dominate in Lisbon right now?
In Lisbon's residential market, you'll find roughly 75% to 80% apartments, about 10% to 15% townhouses or small houses, and the remainder split between villas and other property types, with older apartment buildings in central parishes representing the vast majority of available stock.
Apartments in pre-1980 buildings without elevators or parking represent the single largest share of Lisbon's market, making up an estimated 50% to 60% of all residential listings, particularly in historic neighborhoods like Alfama, Graca, and Mouraria.
This dominance of older apartment stock developed because Lisbon was densely built before the car era, and the city's hilly terrain and historic preservation rules have limited large-scale new construction in central areas, so buyers mostly choose between charming older buildings or newer developments in peripheral zones like Parque das Nacoes.
If you want to know more, you should read our dedicated analyses:
Are new builds widely available in Lisbon right now?
New-build properties represent an estimated 10% to 15% of all residential listings in Lisbon, making them available but far from abundant relative to strong buyer demand for modern, energy-efficient homes.
As of early 2026, the neighborhoods with the highest concentration of new-build developments in Lisbon include Parque das Nacoes, Marvila's riverfront redevelopment zone, parts of Alcantara, and family-oriented areas like Lumiar and Olivais where larger development plots exist.
Get fresh and reliable information about the market in Lisbon
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Which neighborhoods are improving fastest in Lisbon in 2026?
Which areas in Lisbon are gentrifying in 2026?
As of early 2026, the Lisbon neighborhoods showing the clearest signs of gentrification include Marvila, Beato, Arroios (especially the Anjos and Intendente micro-areas), Penha de Franca, and parts of Alcantara, all experiencing visible transformation from industrial or working-class areas into creative and residential hubs.
The visible changes signaling gentrification in these Lisbon areas include the arrival of specialty coffee shops and co-working spaces in Marvila, boutique hotels and renovated buildings replacing abandoned warehouses in Beato, and a stronger international food scene along with renovated apartment facades in Arroios.
Price appreciation in these gentrifying Lisbon neighborhoods has been substantial over the past two to three years, with Marvila showing year-on-year growth of around 32% and Penha de Franca around 16% according to idealista's December 2025 data, far outpacing the city average.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Lisbon.
Where are infrastructure projects boosting demand in Lisbon in 2026?
As of early 2026, the Lisbon areas where major infrastructure projects are boosting housing demand include the Estrela and Lapa neighborhoods near the new Estrela metro station, the Santos waterfront area, and Alcantara which benefits from improved multi-modal transport connections.
The specific infrastructure projects driving demand in Lisbon are the metro expansion adding new stations at Estrela and Santos as part of the network's circular line completion, plus enhanced interchanges connecting metro to the Cascais rail line and river transport along the waterfront.
The estimated timeline for completion of these major Lisbon metro projects is 2025 to 2027 for the Estrela and Santos stations, though metro construction timelines in Lisbon have historically experienced delays of 12 to 24 months beyond initial projections.
The typical price impact on Lisbon properties near announced infrastructure projects ranges from 5% to 15% during the announcement and construction phase, with an additional 10% to 20% uplift once stations become operational and commuting patterns actually change.
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.
What do locals and insiders say the market feels like in Lisbon?
Do people think homes are overpriced in Lisbon in 2026?
As of early 2026, the general sentiment among Lisbon locals and market insiders is that homes are significantly overpriced relative to local incomes, though many acknowledge that supply constraints and international demand justify some of the premium for sellers.
When arguing that Lisbon homes are overpriced, locals typically cite the price-to-income gap, pointing out that median apartment prices now require 15 to 20 years of the average Portuguese salary to afford, compared to around 10 years a decade ago.
Those who believe Lisbon prices are fair counter that comparable European capitals like Barcelona, Milan, and Dublin cost more per square meter while offering similar or lower quality of life, and that Lisbon's limited buildable land creates genuine scarcity.
The price-to-income ratio in Lisbon sits at roughly 12 to 15 times the median annual household income, compared to the Portuguese national average of around 8 to 10 times, making the capital notably less affordable than smaller Portuguese cities like Braga or Coimbra.
What are common buyer mistakes people regret in Lisbon right now?
The most frequently cited buyer mistake in Lisbon is underestimating ongoing costs for older buildings, where buyers later discover that condo fees, special assessments for elevator installation or facade repairs, and hidden plumbing or electrical issues can add 20% to 40% to their total ownership costs.
The second most common regret among Lisbon buyers is purchasing with short-term rental income assumptions that turned out to be unrealistic, especially since Lisbon's Alojamento Local regulations changed in December 2025 and many properties cannot legally operate vacation rentals or require complex licensing.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Lisbon.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Lisbon.
Get the full checklist for your due diligence in Lisbon
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
How easy is it for foreigners to buy in Lisbon in 2026?
Do foreigners face extra challenges in Lisbon right now?
The overall difficulty level for foreigners buying property in Lisbon is moderate to high compared to local buyers, primarily due to longer documentation processes, stricter mortgage terms, and the removal of the Golden Visa real estate option for Lisbon under the Mais Habitacao law passed in 2023.
Foreigners face no legal restrictions on purchasing residential property in Lisbon, but they must obtain a Portuguese tax number (NIF), open a local bank account, and cannot use property purchases to qualify for residency through the Golden Visa program since the 2023 law changes eliminated that route for Lisbon and other high-pressure housing areas.
The practical challenges foreigners most commonly encounter in Lisbon include the fact that many notaries and municipal offices operate primarily in Portuguese with limited English availability, that property transactions require in-person signatures that complicate remote purchases, and that utility transfers and building management communications often assume Portuguese fluency.
We will tell you more in our blog article about foreigner property ownership in Lisbon.
Do banks lend to foreigners in Lisbon in 2026?
As of early 2026, mortgage financing is available to foreign buyers in Lisbon from major Portuguese banks including Novobanco, Millennium BCP, Santander Totta, and Bankinter, though approval processes are stricter and take longer than for Portuguese residents.
Foreign buyers in Lisbon can typically expect loan-to-value ratios of 60% to 75%, meaning a down payment of 25% to 40% is required, with interest rates ranging from 3% to 6% depending on the borrower's profile, property type, and whether the rate is fixed or variable.
Banks in Lisbon typically require foreign mortgage applicants to provide proof of income through tax returns or employment contracts from their home country, credit reports, bank statements showing sufficient funds for the down payment plus closing costs, and documentation of the property's valuation from a bank-approved surveyor.
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.
How risky is buying in Lisbon compared to other nearby markets?
Is Lisbon more volatile than nearby places in 2026?
As of early 2026, Lisbon shows slightly higher price volatility than nearby markets like Cascais and the Setubal Peninsula, primarily because the capital is more exposed to swings in international demand, credit conditions, and tourism-linked investment flows.
Over the past decade, Lisbon experienced price swings of roughly 10% to 15% annually during boom periods compared to 5% to 10% in Cascais and 8% to 12% in Porto, with the capital's international buyer segment amplifying both upward momentum during good years and correction risk during downturns.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Lisbon.
Is Lisbon resilient during downturns historically?
Lisbon has shown relatively strong historical resilience during economic downturns compared to peripheral Portuguese markets, with prime central neighborhoods recovering faster and maintaining better liquidity than suburban or rural areas.
During Portugal's post-2008 financial crisis and subsequent bailout period, Lisbon property prices declined by roughly 15% to 25% from peak to trough between 2008 and 2013, with recovery beginning around 2014 and prices exceeding pre-crisis levels by 2017, representing a roughly 3 to 4 year recovery timeline.
Property types and neighborhoods in Lisbon that have historically held value best during downturns include renovated apartments in core central areas like Chiado and Baixa, family-sized units near good schools in Estrela and Campo de Ourique, and well-located properties with parking, which all maintained stronger buyer interest even when the broader market softened.
Get to know the market before you buy a property in Lisbon
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How strong is rental demand behind the scenes in Lisbon in 2026?
Is long-term rental demand growing in Lisbon in 2026?
As of early 2026, long-term rental demand in Lisbon continues to grow strongly, driven by a persistent supply shortage and sustained inflows of young professionals, expats, and students who cannot afford or prefer not to buy.
The tenant demographics driving long-term rental demand in Lisbon include tech sector professionals and remote workers from higher-income EU countries, university students attending Lisbon's growing academic institutions, and expat families who relocate for work but rent initially while evaluating neighborhoods.
The Lisbon neighborhoods with the strongest long-term rental demand right now include Arroios and Anjos for young professionals seeking value, Campo de Ourique and Estrela for families, and Principe Real and Chiado for expats and digital nomads willing to pay premium rents for central locations.
You might want to check our latest analysis about rental yields in Lisbon.
Is short-term rental demand growing in Lisbon in 2026?
The regulatory changes affecting short-term rentals in Lisbon include municipal restrictions on new Alojamento Local licenses that entered into force on December 6, 2025, which limit new registrations in high-density tourist zones and impose stricter requirements on existing operators.
As of early 2026, short-term rental demand in Lisbon remains strong with tourism arrivals exceeding 9 million visitors in 2024, but the ability to legally supply this demand is increasingly constrained by the new licensing rules, creating a split between existing licensed properties and those that cannot operate.
The current estimated average occupancy rate for legally operating short-term rentals in Lisbon ranges from 65% to 80% annually, with peak summer months reaching 85% to 95% and winter months dropping to 50% to 60%, depending on location and property quality.
The guest demographics driving short-term rental demand in Lisbon include leisure tourists from Western Europe and North America visiting for weekend breaks or week-long holidays, digital nomads booking month-long stays to test the city, and business travelers attending conferences or corporate events.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Lisbon.
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 are the realistic short-term and long-term projections for Lisbon in 2026?
What's the 12-month outlook for demand in Lisbon in 2026?
As of early 2026, the 12-month demand outlook for residential property in Lisbon is steady to moderately positive, with well-priced properties continuing to attract buyers while overpriced listings sit longer on the market.
The key economic and political factors most likely to influence Lisbon property demand over the next 12 months include European Central Bank interest rate decisions that affect mortgage affordability, Portugal's GDP growth trajectory forecast at around 2%, and any further regulatory changes affecting foreign buyers or rental markets.
The forecasted price movement for Lisbon residential property over the next 12 months is an increase of 3% to 7%, with premium neighborhoods and new developments likely to see above-average appreciation while older stock in less desirable locations may see more modest gains.
By the way, we also have an update regarding price forecasts in Portugal.
What's the 3 to 5 year outlook for housing in Lisbon in 2026?
As of early 2026, the 3 to 5 year outlook for Lisbon housing prices and demand is moderately positive with expected annual appreciation of 3% to 6%, driven by persistent supply constraints, Lisbon's role as Portugal's primary global city, and improving transport infrastructure.
The major development projects and urban plans expected to shape Lisbon over the next 3 to 5 years include the completion of metro extensions to Estrela, Santos, and eventually Alcantara, continued riverfront regeneration in Marvila and Beato, and potential redevelopment of underused industrial areas near the port.
The single biggest uncertainty that could alter Lisbon's 3 to 5 year outlook is a sustained period of higher interest rates combined with an economic slowdown, which could reduce foreign buyer demand, tighten mortgage access, and potentially trigger price corrections in the 10% to 15% range.
Are demographics or other trends pushing prices up in Lisbon in 2026?
As of early 2026, demographic trends are having a moderate to strong upward impact on Lisbon housing prices, with net migration and household formation outpacing new housing supply and creating sustained demand pressure.
The specific demographic shifts most affecting Lisbon prices include continued inflows of working-age professionals from other EU countries attracted by lifestyle and relative affordability, a growing foreign-born population that now exceeds 295,000 in the greater Lisbon area, and smaller household sizes that increase total housing unit demand even without population growth.
Beyond demographics, the non-demographic trends pushing Lisbon prices include persistent demand from remote workers and digital nomads who earn in stronger currencies, continued interest from European and American buyers seeking a second home or retirement destination, and limited institutional investor exits despite regulatory changes.
These demographic and trend-driven price pressures in Lisbon are expected to continue for at least the next 5 to 10 years, as Portugal remains a migration destination within the OECD framework and Lisbon's infrastructure improvements make more neighborhoods accessible to international residents.
What scenario would cause a downturn in Lisbon in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Lisbon is a combination of sustained higher interest rates from the European Central Bank, an economic slowdown reducing employment in key sectors like tourism and tech, and a pullback in foreign buyer demand due to currency shifts or competing destinations.
The early warning signs that would indicate a downturn is beginning in Lisbon include a sustained increase in average days on market beyond 100 days for typical listings, a widening gap between asking prices and transaction prices exceeding 10%, and a noticeable uptick in motivated seller listings or distressed sales in previously strong neighborhoods.
Based on historical patterns, a potential downturn in Lisbon could realistically see prices decline by 10% to 20% from peak levels over a 2 to 3 year period, with recovery taking an additional 3 to 5 years, though central prime locations would likely experience smaller declines and faster rebounds than peripheral areas.
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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) | INE is Portugal's official national statistics agency, providing the most reliable government data on construction, housing, and prices. | We used INE data to anchor supply indicators like building permits and licensed dwellings. We cross-check private price indexes against these official trendlines to ensure accuracy. |
| idealista | idealista is Portugal's largest property portal and publishes a consistent time-series for asking prices across all Lisbon neighborhoods. | We used idealista for high-frequency pricing signals and parish-level comparisons within Lisbon. We always label this as asking prices and cross-check with transaction data where possible. |
| Confidencial Imobiliario | Confidencial Imobiliario is a long-established Portuguese housing intelligence provider used by institutions including the ECB and Banco de Portugal. | We used their transaction-based indices as a signal for actual sale prices in Lisbon. We cross-reference their data with INE to keep direction and scale realistic. |
| RICS/Ci Portuguese Housing Market Survey | RICS is a global professional body for real estate, and this survey is co-produced with Confidencial Imobiliario and widely cited. | We used this survey for market sentiment indicators including buyer enquiries, sales expectations, and rent pressures. We treat it as a qualitative cross-check on harder price data. |
| Banco de Portugal Financial Stability Report | Banco de Portugal is Portugal's central bank, and this flagship report covers housing market risks and credit conditions. | We used their analysis to understand systemic risk and credit vulnerabilities. We triangulate these findings with price indexes and lending behavior patterns. |
| Metropolitano de Lisboa | This is the official metro operator and primary source for planned station locations and expansion timelines. | We used their expansion plan to identify which corridors will gain better connectivity. We map these improvements to nearby neighborhoods that buyers actually consider. |
| Diario da Republica (Law 56/2023) | Diario da Republica is Portugal's official gazette containing primary law, not commentary or interpretation. | We used it to ground what changed legally including Golden Visa and residency rules. We translate the implications into plain-language takeaways for foreign buyers. |
| PLMJ Legal Note | PLMJ is a top-tier Portuguese law firm, and they cite the specific official gazette references for municipal regulation changes. | We used their analysis to explain what changed and when for Alojamento Local short-term rental rules. We treat it as legal interpretation anchored to official notice numbers. |
| TravelBI (Turismo de Portugal) | This is an official tourism dashboard based on INE's accommodation survey series for Portugal. | We used overnight stay data to gauge the demand base behind short-term rentals. We combine this with regulation sources to distinguish demand from legal operating ability. |
| Savills Research | Savills is a major global real estate consultancy with published research methodology and institutional credibility. | We used their outlook reports to frame supply constraints and buyer segment analysis. We treat their commentary as a narrative layer on top of official INE and Banco de Portugal data. |
| JLL Portugal | JLL is a major global real estate advisor known for rigorous market research across commercial and residential sectors. | We used their reports to cross-check demand drivers and development pipeline analysis. We avoid overfitting conclusions to any single data provider by incorporating multiple perspectives. |