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Real Estate Investment in Lisbon’s Historical Center Rose 17% in the Year to June

10 November 2017

Real estate investment in the historic centre of Lisbon during the first half of this year was about 345 million euros, “a growth of 17% over the previous semester,” according to an index published on Friday by Confidencial Real Estate consultancy.

Real estate investment in the historic center of Lisbon during the first half of this year was about 345 million euros, “a 17% growth over the previous semester,” “In the first half of this year, 898 properties were transacted in the historical center of Lisbon, with an investment volume of around 345 million euros,” Confidencial Imobiliário revealed, based on the Lisbon Historical Center Price Index (IPCHL), which covers the Lisbon parishes of Misericórdia, Santa Maria Maior and São Vicente. Transactions included the sale of either buildings, fractions, whether rehabilitated or not, in the areas of housing, retail and services.

The investment volume of around €345 million represents “an increase of 17% over the previous half year when €296 million were transacted”, the index showed.

Regarding the number of properties sold, there was virtually no change from the previous period (889 transactions), leading to a belief that “the increase of the volume of investment was probably the result of investments in properties of greater value… Thus, the average investment amount was around 394,000 euros in the first half of this year, when in the previous half it had been 338,000 euros,” Confidencial stated.

Despite the growth in the first half of the year, the results for the first half of this year represent a “decrease” compared to the same period last year – the first half of 2016, “both in terms of investment volume (- 13% vs 395 million euros) number of assets traded (-34% against the 1,345 transactions), “according to IPCHL data.

“It should be noted that the first half of 2016 reached, in both indicators, the highest mark since 2013,” Confidencial Imobiliário reported.

Regarding prices in the historical centre of Lisbon, the index shows a continued “upwards price trajectory,” registering a semi-annual increase of 14% and a 26% year-on-year increase. “The upward trend in prices has been going on for six consecutive semesters (since mid-2014), with a cumulative increase of 67% in prices in the historic centre since then,” according to the IPCHL.

Alongside the historic centre, residential prices in the city of Lisbon have “a growing trend since 2014, with a year-on-year increase of 23.7% in the second quarter of this year and an accumulated appreciation of 58% in the last three years” Confidencial’s report stated.

Confidencial Imobiliário is an independent company specialising in the production and dissemination of real estate market analysis, maintaining indexes and databases on investment and the purchase, sale and rental markets, with details broken down by parish.

Original Story: Observador / Lusa

Photo: Rodrigo Antunes – Lusa

Translation: Richard Turner