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ULI Ranks Lisbon in 11th Place for Real Estate Investment

29 January 2018

The 2018 Emerging Trends in Real Estate Europe study, conducted jointly by the consultancy PwC and the Urban Land Institute (ULI) puts the city of Lisbon in 11th place regarding global investment, down four places compared to 2017.

Out of a total of 31 cities under analysis, Lisbon was in the top ten in 2015 when ranked according to its growth and development prospects for the real estate market. In that year, Lisbon catapulted from 26th place in 2014 to 9th place in 2015, rising two more places in 2016 and remaining in 7th place last year.

The ULI predicted that Portugal would fall in the ranking in 2018, but respondents continue to regard Lisbon as “a city to study for possible investments”. In fact, the reason why Lisbon has fallen in the ranking of the most emerging cities will be related to the fact that some respondents consider Portugal as a small market and with “some questions regarding liquidity.” Nevertheless, it should be noted that all respondents considered investments in Lisbon feasible in the light of current economic stability and low prices. Besides, Lisbon is known for being a very technologically advanced city, which is causing interest on the part of companies considering installing their back-offices in the country.

Lisbon was also joined by Barcelona in 11th place in Emerging Trends in Real Estate Europe. The main worry surrounding Barcelona is the economic instability in Catalonia. Many of the investors who typically take positions in the Spanish market are now widening their horizons, considering investments in Lisbon because of its proximity and its equally advantageous characteristics.

The service sector, housing for students, new construction and refurbishment of well-located shopping centres are market niches where further growth is expected for Lisbon, the ULI also noted in its annual study.

Berlin topped the ranking in the study for the fourth consecutive year as the most “vibrant”, “fantastic” city and the “hottest” market in Europe, both in terms of prices and profitability.

Original Story: Construir

Translation: Richard Turner