All eyes remain on the Portuguese capital, as it continues to prove itself as one of the best cities in Europe for Real Estate investments. This conclusion comes directly from the 2024 Emerging Trends in Real Estate in Europe report, conducted by PwC in partnership with the Urban Land Institute. More than 1000 experts and industry leaders in the European Real Estate landscape have been interviewed, revealing invaluable data for the 2024 forecast.
The 21st Edition of the Emerging Trends in Real Estate report brings an overview of the European economies, revealing major concerns regarding the impact of increases in interest rates, inflation, discrepancies in market valuations, economic growth uncertainties, geopolitical risks, and social and political issues at the forefront for 2024 and the future.
Despite these, Lisbon still pulls ahead, ranking 8th for the best cities to invest in Real Estate in 2024. A remarkable increase of 3 positions from the 11th place in comparison to 2023, which had already witnessed Lisbon’s meteoric rise from the 16th to the 11th position. All this reveals Lisbon’s resilience in the face of overwhelming odds, becoming one of Europe’s Capitals, boasting unique ventures for property investment, and outpacing other Real Estate titans such as Barcelona, Vienna, Brussels, and Zurich.
Why invest in Lisbon real estate
According to the 2024 Emerging Trends in Real Estate report, transactions in the European Real Estate market are slowing down. Among the many complications already pointed out, inflation and increasing interest rates truly stand out as the main culprits. Because of this, experts project investors to play it safer and turn to economic performance as the number one indicator of a city’s prospects of yielding returns. Capital cities tend to fare better in this department, as evidenced by the Top 5, remaining safe havens, and representing better chances of greater liquidity and stability.
Coming in at the 8th position, up 3 places from last year, and 8 places since 2022, Lisbon is not at all far from the Top 5, revealing the city is undoubtedly on an upward trajectory. Lisbon marks itself as an extremely viable location for investment in 2024, holding massive potential for increased returns. Another factor highlighted as the second-most important indicator is transportation connectivity. The city in itself is well-served by 4 subway lines, reaching across the major parishes, countless buses, dedicated trams serving the city’s configuration, train lines running through the city, among other options. The Lisbon International Airport receives thousands upon thousands of visitors every year, further emphasising the city’s potential. There are also active discussions to build a brand-new airport in the city. Plans to build and adapt existing railway lines for a high-speed rail, connecting domestic and international cities alike.
Besides economic performance and transportation connectivity, the survey’s respondents further point out other reasons why the city is experiencing such a renaissance stage. The availability of assets, the regulatory environment, and the fact it draws in talent from all over the world showcase Lisbon’s versatility, explains its rising prominence and resilience in weathering crises.
In terms of Real Estate specifically, the city proves a goldmine for development. For decades, Lisbon lacked investment, and much of it fell into a state of disuse, and into some sections of the city becoming less fashionable. In recent years, though, local authorities have facilitated the process of development and construction of new properties, as well as the refurbishment of existing real estate.
Portugal Homes is the prime example, leading the vanguard with its Project Development & Construction department. In just 6 years of existence, the company and the department have renovated 10 developments, perfectly merging investors’ needs, when it comes to buying and renovating for investment purposes, with sustainability, always keeping it as the fundamental idea for the future. As other cities recede or maintain their positions, Lisbon, and Portugal in general, are showing no signs of slowing down. In an increasingly uncertain world, Lisbon stands tall, becoming a stronghold and protecting all types of investments, including Real Estate.
Property Investment: Lisbon vs Other European Real Estate Markets
London remains the best Real Estate market to invest in Europe, which stands at the top of the report produced by PwC and the Urban Land Institute for the third year running. Following the expectation for investors to choose traditionally safer locations, it tracks that London stays at the top, despite quality-of-life concerns, especially when one considers the high demand for office space, and the UK responding quicker to higher interest rates than other parts of Europe.
The French capital maintains the 2nd place earned in 2023, revealing the city’s resilience. Paris and France continue to be the world’s top tourist destinations, a number which will only increase in 2024, considering it is receiving the Olympic Games. However, similar issues apply to Paris as well, especially some experts express people have different opinions about the Games, and lack of offices spaces.
While these markets may seem more stable and more suitable for property investment, one must consider other facts as well. The United Kingdom, and London by extension, are no longer in the European Union and have no direct access to the single market. France and Paris are extremely crowded, and seemed to have reached a plateau when it comes to investment potential.
London and Paris may seem the more stable options, but Lisbon emerges as a very promising and profitable market, especially when one considers its novelty in the international scene by investors.
Portugal, the new “Californian Dream" of Europe, is increasingly becoming more competitive, consistently featuring in the spotlight, and earning tourism awards every year. Even though the country has a small territory, it is filled with a rich culture and a friendly population. The cherry on top of the cake is Portugal’s attractive cost of living, which effectively translates into lower property prices than across other European markets.
Where is the best place to buy an investment property in Lisbon?
As the capital and the largest city, Lisbon leads the Portuguese economy. The greater region is the most populated, unifying both Portuguese and expat communities in a friendly atmosphere. As one of the safest countries in the world, Portugal boasts a low crime rate, and this is reflected across the country, including Lisbon. A privileged warm climate grants over 300 days of sunshine per year, and a world-renowned cuisine delights anyone seeking an explosion of savoury flavours. Enabling a relaxed lifestyle and the entrepreneurial spirit to flourish, Lisbon has become the best place for expats to live and invest. In 2024, this is only set to become even more prominent, as Lisbon climbs the ranks for investment hotspots.
As the city continues to expand in importance, international investors keep searching for opportunities in Lisbon's best areas to invest. Portugal Homes grants the best deals in the city centre, especially in key areas for a profitable investment such as the Downtown (Baixa) & Chiado locations (Santa Maria Maior parish), the nightlife neighbourhood Bairro Alto (Misericórdia Parish), the high-profile business avenue, Avenida da Liberdade (Santo António Parish), and the business quarters Avenidas Novas and Parque das Nações. Portugal Homes and its real estate experts will advise and offer the best deal for investment in Lisbon.
Property prices in Lisbon (per square metre)
In comparison to other European cities, the city of Lisbon is markedly smaller in terms of geographical boundaries, though its size increases when one considers the greater metropolitan area. Even so, there is a significant variation in the price per square meter. From one street to another, the price may increase or decrease, especially if there is a change in parishes, which might not always seem obvious. Obtaining specialised advice is the key to a healthy investment, and whether you are seeking to buy Real Estate in Lisbon or make a property investment and get Residency in Portugal and the EU, Portugal Homes is ready to offer the best advice on the market.
Hover over a parish to check the price per square metre of properties for sale in Lisbon.
Property Investment in Lisbon with Portugal Homes
In Portugal, the expected trend of Real Estate investments slowing down may be correlated to the discontinuation of the Golden Visa programme through Real Estate purchases. Back when it had been active, this option enabled third-country nationals to become Residents in Portugal through Real Estate investments starting from €280k. The programme still exists, through donations, contributions, and subscriptions to investment funds, though its value has greatly been diminished.
The discontinuation of the Golden Visa option to purchase Real Estate does not take anything away from Lisbon and Portugal being the ideal locations for real estate investments in 2024 and beyond. If anything, it takes some pressure off the Real Estate market, which combined with the forecast in which investors turn to stabler and steadier cities, Lisbon presents itself as full of potential and ripe for returns in 2024.
A tremendous opportunity arises in the form of Mátria Co-Space, a development project by Portugal Homes. Serving as a hub for your future business, investing in Mátria Co-Space not only guarantees a 4% yearly return, but also an optional buyback. As a commercial building, Mátria Co-Space will also qualify for the Portugal D2 Visa, an alternative to the Portugal Golden Visa, geared toward the operation of a business. Choosing this investment option enables you to become a Resident in 3 months, and a Citizen in 5 years. Becoming a Portuguese resident, will give you access to the country’s incredible healthcare systems, including the public universal service, public education, and gain the ability to travel visa-free to Europe. 
Alternatively, acquiring property in Portugal has 3 main steps: Reservation, Promissory, and the Deed. As a Real Estate agency, Portugal Homes is deeply familiarised with this process, and we ensure proper guidance through all of it. Portugal Homes boasts a wide selection of properties available for sale, on which we can advise you and serve as the intermediary between you and the seller. The second step involves the signing of a Promissory contract, in which the seller will include all the important points of the sale and a complete rundown of the property in this contract. Step 2 is skippable, but usually requires the entire capital to be at hand readily, something not always possible, which is why the Promissory plays a key role.
Whether investing or buying, Portugal Homes provides tailor-made solutions, always aiming to fully satisfy our client’s needs throughout the entire process. Our diverse packages enable you to feel comfortable and at ease, and whether it is to acquire your Portuguese Taxpayer Number, opening a bank account in Portugal for you, be your Tax Representative, Portugal Homes can do it all and more for you.
Investing or buying property in Portugal is an extremely transparent process and you, as a buyer, will be completely protected during the process. Portugal Homes further facilitates the process, standing with you through every step of your Portugal Real Estate investment journey.
