Global Market Guide: Lisbon, Portugal
Recently, Portugal has seen an influx of buyers which have migrated from all over the world. In this month’s, Global Market Guide we get an inside view of the luxury demands in Portugal’s capital, Lisbon to learn more about what buyers value most in the city.
In Lisbon, the real estate market is 90% based on listings from the sellers. Around 15% of listings are exclusive to one brokerage. With the increase of French buyers, buyer representation is about 7%-10%.
THE CURRENT HOUSING MARKET
The market in Lisbon and its surrounding areas is currently peaceful with few political conflicts and a flourishing economy, despite political conflict in other European countries. Luxury home prices are up by 10% and expected to rise to 15% in the coming years. Many clients from other parts of the world are looking to purchase a home in Lisbon due to the peaceful environment, beautiful weather and prosperous economy.
ATTRACTING LUXURY BUYERS
Luxury buyers in Lisbon are primarily seeking condominiums and private villas with views of the sea. Refurbished buildings with luxury amenities like indoor and outdoor swimming pools, gyms and high-quality finishes are also in high demand. Buyers often seek out properties with balconies, open kitchens and spacious communal areas that allow them to take full advantage of the weather in Portugal and have open access to the outdoors.
High-tech properties with heated floors and other smart home capabilities are becoming increasingly more popular. Many earth conscious clients also look for energy efficient and sustainable homes with solar panels.
Lisbon is seeing a high demand for new construction homes, which typically sell very quickly once they hit the market. New developments in old Lisbon and the coastal resort community of Cascais are currently under construction and will be available for purchase by the end of 2017 or in the first months of 2018.
LUXURY BUYER PROFILE
About 80% of luxury buyers in Lisbon are foreign buyers, coming from places like France, Sweden, and the Americas. The remaining 20% of buyers in Lisbon are locals looking to purchase new or refurbished luxury homes.
CURRENT POLITICAL CLIMATE
After a financial collapse some years ago, the government implemented a plan to regenerate the economy and the result is the prosperous economy in Lisbon today. The government has successfully brought back the Portuguese economy promoting Lisbon as a hub for up-and-coming technology companies, which adds to the city’s appeal. The city council also promoted the Golden Visa Programme which gives non-EU citizens a permanent residency and a European passport if they make a real estate purchase of more than €500,000.
Due to recent trends in the market, the prices of luxury homes in Lisbon are expected to continue to increase, although not drastically. Due to the rise in popularity, prices in the area may increase by about 20% over the next 5 years.
FACTORS CONTRIBUTING TO LISBON’S GROWTH
The flourishing economy and peaceful atmosphere make Lisbon an attractive location for real estate buyers from around the world. Unlike some other areas in Europe, Lisbon has not been negatively affected by Brexit, which adds to its expanding allure. The local government has also made strides in recent years to improve the quality of life by positioning the city as a hub for tech development and substantially decreasing the country's deficit. With the recent rise of foreign buyers, paired with the appeal of a calm and peaceful environment, we are likely to see continued and steady growth in the region over the next few years.
Ranked by Forbes as one of the top 10 places to retire abroad, and recently recognized as a trendy location by celebrities and the global affluent, Lisbon is quickly becoming one of the most coveted locations to live in Europe. The city’s flourishing economy adds to its allure among luxury buyers and growth is expected to continue in the coming years.
Special thanks go to our member IN’s Portugal for providing their insights about the luxury real estate market in Lisbon.
For more information on properties in Portugal, browse here.