Real estate in Lisbon is booming. The city is a commercial and economic capital of Portugal, a political and financial center, a seaside resort and a leading tourist city. The tensions on the real estate market are therefore quite logical. The city attracts more and more retirees, students, tourists, expatriates…
👉 See key data to buy an apartment in Lisbon
The favorite city of French expatriates
More than any other capital city in Europe, Lisbon appeals to the French. It is only a 2-hour flight from Paris and even less from many regional airports. Of the 25,000 French people who bought in Portugal between 2013 and 2016, more than 50% chose to settle in Lisbon.
In just a few years, the city has been transformed. Its historic center has gone from an almost totally dilapidated state to a complete rehabilitation. The lifting of a law framing rents in 2013 has finally allowed owners to make the necessary investments.
Now, real estate developers are in the picture. The work remains colossal. Informally, it is estimated that between 4,000 and 5,000 buildings still need to be renovated in the heart of the city, not to mention the districts of the inner ring road. Of course, other cities are also favored by French people looking for a good real estate purchase in Portugal, but Lisbon remains, along with the Algarve, a destination that is very popular.
Real estate prices in Lisbon
Despite a notable rise in the last two years, prices remain attractive in the hyper-center compared to other major European capitals. On average, you can expect to pay 5,000 euros per square meter for an old, unrenovated house and between 6,000 and 9,000 euros for a renovated one, depending on the neighborhood.
In five years, prices in the center of Lisbon have quadrupled, according to the Portuguese association of real estate agents, rising from 1,500 to 6,000 euros per square meter on average if we consider all types of property: old renovated, new, to be renovated, sea view…
Table of real estate prices in the old renovated (last quarter 2019) by neighborhood
| Neighborhood |
Average price (€/m2) |
| Ajuda | 3 800 € |
| Alcântara | 3 800 € |
| Arroios | 4 300 € |
| Anjos | 3 500 € |
| Avenidas Novas | 5 700 € |
| Belém | 4 900 € |
| Campo de Ourique | 5 400 € |
| Estrela | 5 600 € |
| Marvila | 3 500 € |
| Misericórdia | 6 200 € |
| Parque das Nações | 5 200 € |
| Penha de França | 3 500 € |
| Santa Maria Maior | 5 200 € |
| Santo António | 6 500 € |
| São Vicente | 4 000 € |
Map of real estate prices by neighborhood in Q3 2018
Prices have risen sharply in the space of a year. This map of prices by neighborhood in Lisbon and its region gives a vision of this.
The neighborhoods favored by the French
As a result of this surge in real estate prices in Lisbon, some French people now prefer to settle on the outskirts of the city rather than in its historic center.
Among the most popular destinations are Seixal and Alcochete, respectively to the south and east of the Portuguese capital. Prices per square meter are twice as low, between 2800 and 3800 euros per square meter. An affordable price to live by the sea while remaining close to Lisbon. Indeed, Seixal is located ten minutes from the beach and a quarter of an hour by boat from the center. These localities have retained the charm of small authentic villages. Ideal for a family.
To the west of the city center, the residential area of Estrela (called “freguesia” here, which corresponds to an urban grouping around a parish) remains one of the least expensive. To find even lower prices, you have to go east to the area of Sao Vicente: the popular neighborhood of Mouraria is undergoing a major renovation.
The parish of Misericordia is more expensive because it has been completely renovated for several years now. The area includes the residential neighborhood of Santos and the more touristy Bairro Alto, which attracts investors.
Finally, further north, the highly sought-after freguesia of Santo Antonio remains a particularly popular area for wealthy families. Numerous renovations are currently underway along the Avenue of Liberty, one of the most beautiful avenues in Lisbon.
The tourist real estate investment
If you are interested in investing in a furnished tourist property in Lisbon, you are not alone. With the explosion of tourism, more than 7 million visitors last year, the city has emerged as a new Eldorado for seasonal rentals. And yet… the city is short on hotels.
In 2015, more than 430,000 people rented via Airbnb compared to 210,000 in 2014. French individuals who invest in tourist rentals show an annual occupancy rate of 70% and returns of 5 to 6%.
In the Alfama, one of the historic districts, more than half of the homes are rented via Airbnb. The municipality has taken measures to control the phenomenon. Since autumn, it has been impossible to open a new “Airbnb” without obtaining a specific authorization… which is given in bits and pieces, only when an old Airbnb stops its activity.
As a direct consequence of this tourist boom, prices are skyrocketing and becoming unaffordable for Lisboners who are gradually leaving the city. A phenomenon of gentrification already known elsewhere.
Lisbon’s business real estate market
Growing economy, influx of skills and entrepreneurs… Corporate real estate prices are also soaring in Lisbon. Jones Lang LaSalle, an international real estate consultancy, estimates that €3.3 billion was invested in real estate in Lisbon in 2018, an increase of 74% over the previous year. The vast majority of these investors are foreign at 94% and in 2018 they mainly bought spaces for office space.
JLL recorded an increase of more than 25% in available office space in Lisbon in 2018 compared to 2017, with 210,000 m2 compared to 165,000 in 2017. The most expensive spaces are of course on Avenida da Liberdade and in the Baixa-Chiado district.
Lisbon, however, lacks large spaces capable of attracting large companies looking for comfortable open spaces for the well-being of their employees. This lack is particularly evident in the major commercial areas and near public transportation.
