Real Estate Boom in Lisbon Sparks ‘Bidding Wars’ Amongst Buyers, Bloomberg Reports

29 November 2017

The real estate boom in Lisbon is entering a new phase, the Bloomberg news agency reported. The increased numbers of foreign residents coupled with increased tourism are forcing people who are interested in buying a home in the city centre to make an offer over the asking price just to ensure that they get the property.

In just four years, from 2012 to 2016, house prices in the city have reached a ten-year high. In Lisbon’s historic centre, real estate prices increased 26% in the first half of this year, while the number of transactions fell 34% compared to last year, revealing the lack of available housing.

“There is a huge difference between supply and demand,” says Luís Tilli, a real estate agent at HomeLovers in Lisbon. “We have reached a point where some investors are offering to pay above the asking price in order to secure a deal.”

The average price of housing in one of the city’s central districts was around 6,367 euros per square meter in the first quarter of the year, according to Prime Yield.

“There is an insufficient number of buildings located in the centre of Lisbon that is available to buy,” José Cardoso Botelho, president of Vanguard Properties, stated. “Demand is now turning to homes on the outskirts of town, but it is not easy.”

Not even the “queen of the pop” managed to find a house in the centre of Lisbon, Bloomberg revealed. Madonna will have shown some frustration when looking for a home in the city on social networks: “Can’t find a House in Lisbon, But Damn … sure can find a Horse!”

“This is the first time that Lisbon has experienced a shortage of houses to satisfy the demand of investors,” said Luís Lima, director of the Portuguese Association of Realtors and Real Estate Agents (APEMIP). “Investors have to realise that not everyone will be able to live on the Avenida da Liberdade.”

Original Story: Jornal Econômico – Joana Almeida

Translation: Richard Turner