Lisbon Price Increase: Surpasses Paris & Berlin
- Published December 15, 2023, 18:29:28 EST. Updated as needed to remain evergreen.
- Lisbon continues to be a highly attractive destination for luxury housing investment.
- The Prime Global Cities Index, compiled by Knight frank in partnership with Quintela + Penalva in Portugal, tracks the movement of prime residential prices across 46 cities worldwide.
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Lisbon’s Luxury Housing Market shows Resilience with 3.1% Price Increase
Table of Contents
Published December 15, 2023, 18:29:28 EST. Updated as needed to remain evergreen.
overview
Lisbon continues to be a highly attractive destination for luxury housing investment. According to Knight Frank’s Prime global Cities Index, Lisbon experienced a 3.1% increase in prime property prices in the third quarter of 2023 compared to the same period in 2022, and a 0.6% increase compared to the second quarter of 2023. This growth places Lisbon 18th among 46 global cities evaluated in the index.
Knight frank’s Prime Global Cities Index
The Prime Global Cities Index, compiled by Knight frank in partnership with Quintela + Penalva in Portugal, tracks the movement of prime residential prices across 46 cities worldwide. it provides a benchmark for understanding the performance of luxury property markets globally. The index focuses on the top 5% of the housing market in each city, based on price.
Lisbon’s ranking of 18th place indicates its strong performance relative to other major global cities. The report specifically notes that Lisbon’s price increases surpassed those of Berlin, Dublin, and Paris during the same period.
Expert Commentary
Francisco Quintela,founding partner of Quintela + Penalva,emphasized Lisbon’s positive trajectory. He stated, “This data highlights Lisbon’s capacity for growth, investment capture and resilience. It also demonstrates that, over the last few years, the city has been consolidating itself as a reference destination in the high-quality residential market.”
Factors Driving Lisbon’s Luxury Market
- Golden Visa Program: While reforms are underway, the Portugal Golden Visa program has historically attracted meaningful foreign investment in real estate. Recent changes, announced in February 2024, will restrict investment options to focus on rehabilitation projects and rural areas, potentially impacting future investment patterns.
- Non-Habitual resident (NHR) Tax Regime: The NHR regime offers tax benefits to new residents, making Portugal an attractive location for retirees and high-income earners.
- Quality of Life: Lisbon consistently ranks highly in quality of life surveys, citing factors like safety, climate, healthcare, and cultural attractions.
- Tourism: A thriving tourism industry boosts demand for short-term rentals and contributes to the