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International Demand Leverages Lisbon Residential Market

2 November 2017

The residential market in Lisbon has been growing rapidly, both in the number of transactions and in the average value of these sales. A significant share of this growth comes from international demand, which increasingly looks to Lisbon as a valid option to live.

This is Colliers International’s conclusion, after having conducted a study in which it analysed international demand and perspectives and the future evolution of a new reality for the city, of which Madonna is the most visible face.

According to the international consultancy, along with Portugal’s most significant international appeal, closely linked to the growth of tourism, the creation of regulatory instruments to attract foreign residents, such as golden visas and the Non-Habitual Resident Statute, have been stimulating this type of demand , which according to Colliers International, accounts for 15% of the completed transactions in Lisbon.

According to Gustavo Castro, Head of Research at Colliers International, “another crucial aspect of international demand is the rise in average transaction prices.” As an example, the acquisitions of real estate for the assignment of golden visas, have an average value over 600,000 euros per operation. In terms of value, Colliers International considers that international demand represents a quarter of the residential market in Lisbon.

Although relatively recent, this is a trend that is expected to continue, though with some modifications. The increase in the average price of residential properties in Lisbon already puts the limit of the 500,000 euros of the golden visas, below average real estate (and far below the largest). Also, the greater ease of connecting to China or the prospect of “decentralisation” of SEF services will create new opportunities, henceforth in more peripheral areas of Lisbon, but also in markets still relatively unexplored by international demand, such as Porto.

Original Story: Diário Imobiliário

Translation: Richard Turner