The Lisbon housing market report summarises key trends and patterns in Lisbon’s housing market for 2022/2023. The analysis covers topics including house prices, rents, sales and new supply.
Since it was called Olissipo in the eighth century BC until its reconstruction coordinated by the Marquis of Pombal at the end of the eighteenth century, the cultural and traditional heritage of Lisbon is still visible today in its monuments and the old buildings of the historical centre of the city
Lisbon is one on the trendiest European capitals: gastronomy, culture, museums, walks… Endless activities for all. Located a couple of hours from many other European capitals, Lisbon is the ideal destination for a short break. A visit that you will no doubt want to extend … life is so good in Lisbon!
Facts and figures
Portela International Airport is 7 kilometres from the centre of Lisbon. It is only 20 minutes away by shuttle bus from the city centre.
from major European capitals, Lisbon stands out with its privileged geographic location.
With 300 days of sunshine per year and temperatures of 15-20° in winter, Portugal is rightly considered as the “Florida of Europe”
Living in Lisbon means moving to a European capital, and both buying and renting prices are much higher than elsewhere in the country.
Moreover, Lisbon is a city that has been attracting a lot of foreigners in recent years (Europeans, Americans, but also Brazilians and Chinese in particular). This has had the effect of exerting upward pressure on prices, but also renewing the property stock, which was partially abandoned after the 2008 crisis.
Developers have to preserve the old façades stamped with “Azulejos” while restoring the interiors of the buildings, which results in very beautiful programmes with modern top-of-the-range services.
In Lisbon, you will find many new developments, but also many old and renovated flats.
As in any large city, prices vary greatly from one area to another. This is why TAGUS PROPERTY offers to accompany you in your purchase process: project, advice, research, preparation of visits, negotiation and final act of purchase.
Take advantage of our expertise to launch your property purchase project without wasting time. Distance and lack of knowledge of the market are no longer obstacles to your future purchase.
One of the first concerns when moving to a city is to find a new home to stay in. In most cases, you will be looking for a rented flat or house as it is always risky to buy a property in a city and a country you do not know yet.
Lisbon is rather expensive for rentals, the equivalent of a large provincial city in France, considering the local standard of living. This is due because the supply is relatively low compared to demand, although the current crisis has changed this somewhat: Prices have fallen by 10-15% in rentals. The search area with excellent infrastructure and living conditions is still relatively small.
Due to a law that has now been changed, rents have remained at a very low level for years, causing a drying up of rental properties, as landlords prefer to leave them vacant than occupied at conditions that are not advantageous to them.
The new rent law (Nova Lei do Arrendamento Urbano) has changed these conditions and there are now more flats and houses for rent on the market, but often properties of very average quality.
NEIGHBOURHOOD BY NEIGHBOURHOOD
Article updated on: 4th of October 2022
Today, the average price of a property for sale in Lisbon is 4,800€/sqm, all states combined (new, renovated and old to renovate).
Source: Casafari
| Neighbourhood | Median price per sqm |
| Santo António | 5 624€ |
| Santa Maria Maior | 4 500€ |
| Misericórdia | 4 392€ |
| Parque das Nações | 4 390€ |
| Avenidas Novas | 4 182€ |
| Estrela | 4 167€ |
| Campo de Ourique | 4 128€ |
| Alvalade | 3 944€ |
| Belém | 3 904€ |
| Lisbon | 3 642€ |
| Arroios | 3 634€ |
| Carnide | 3 583€ |
| S. Vicente | 3 581€ |
| Areeiro | 3 566€ |
| Marvila | 3 493€ |
| Ajuda | 3 485€ |
| S. Domingos de Benfica | 3 469€ |
| Alcântara | 3 459€ |
| Campolide | 3 421€ |
| Lumiar | 3 297€ |
| Penha de França | 3 136€ |
| Benfica | 2 993€ |
| Beato | 2 849€ |
| Olivais | 2 798€ |
| Santa Clara | 2 475€ |
Source: INE – 1STQ 2022 (over the past 12 months)
| Neighbourhood | High end (€/sqm) | Luxury (€/sqm) |
| Avenida da Liberdade | 10 500€ | 11 000€ |
| Chiado / Principe Real | 10 500€ | 11 000€ |
| Historical Centre | 7 000€ | 7 500€ |
| Lapa / Estrela | 7 000€ | 7 500€ |
| Avenidas Novas | 7 000€ | 7 500€ |
| Campo de Ourique / Amoreiras | 6 500€ | 7 000€ |
| Restelo / Belém | 6 000€ | 6 500€ |
| Parque das Nações / Expo | 6 000€ | 6 500€ |
| Bord du Tage | 6 000€ | 6 500€ |
| Sete Rios / Praça de Espanha | 5 500€ | 6 000€ |
| Alcântara / Junqueira | 5 500€ | 6 000€ |
| Colina de Santana | 5 500€ | 6 000€ |
| Campo Grande / Alvalade | 5 500€ | 6 000€ |
| Braço de Prata / Marvila | 5 500€ | 6 000€ |
| Telheiras / Lumiar | 4 500€ | 5 000€ |
| Benfica / Laranjeiras | 4 500€ | 5 000€ |
| Olivais | 4 000€ | 4 500€ |
| Areas outside the Lisbon city centre | High end (€/sqm) | Luxury (€/sqm) |
| Estoril / Cascais | 8 000€ | 10 500€ |
| Oeiras | 4 500€ | 5 000€ |
Source: JLL
6 200€/sqm on average for a new property in Lisbon (the majority of launches are in dynamic and prestigious areas)
Prices are higher in Lisbon’s historic centre: for new properties or fully renovated schemes, prices range from 7,000€ to 7,500€ per square metre.
New-build prices can reach 11,000€ per square metre in the Avenida de la Liberdade, Chiado and Principe Real.
For rental investment (year-round or medium-term rental) the market in Lisbon is still strong. Currently, there is a shortage of rental properties on the market and strong demand from newcomers, expatriates, retirees, workers, or nomad workers who wish to rent quality properties in Lisbon.
On that specific market, Yields are currently good. For properties in consolidated areas they vary between 3% and 6% gross.
Before buying a property in Portugal for rental investment, you should be careful about certain points. When buying an occupied property, for example, it is important to make sure that the rental contract is recent, as for older rental contracts, rents can be capped at very low prices which severely limit the Yield.
It is also strongly recommended that foreign investors buy new or rehabilitated housing: old properties often have structural problems, non-existent co-ownerships or are in default. And undertaking rehabilitation work on common areas will be very complicated.
There are also legal differences: the cooling-off period does not exist in Portugal and properties are sold in gross area.
It is therefore advisable to work with specialists who are familiar with local and French specificities and who will be able to alert you to any differences to avoid surprises.
READ: Portugal real estate investment in 2022 / 2023
TAGUS PROPERTY also handles rental management and offers its services to manage your property.
Make your investment profitable by renting it out!
Learn more about our rental management services in Lisbon.
Do you need advice on where to invest in Lisbon?
Portugal had the highest rate of positive investment intentions across europe.
Tagus Property
Contact our property finders in the Lisbon region to discuss your real estate project.
Read more
Use a hunter to find a house or apartment around Lisbon region.
Read more
Contact a property hunter to find your villa in the Algarve or your apartment by the sea in Portugal.
Read more“We are a dedicated team of experienced Property Finders in Portugal to guide you through every stage.”
