The luxury real estate market in Lisbon is experiencing a remarkable surge, with prices accelerating at the second highest rate in the world. This trend is notable as global luxury home prices are generally slowing down due to high interest rates.
Key Facts
- Lisbon’s luxury home prices have the second highest acceleration globally.
- The Prime Global Cities Index shows a global slowdown in luxury home price growth.
- Lisbon’s house prices rose by 4.7% in Q2 2024.
- The city ranks 8th in the world for the highest increase in luxury house prices.
- The Portuguese market remains attractive for foreign investments.
Global Slowdown in Luxury Home Prices
The latest data from Knight Frank, which analyzed 44 cities, reveals that the annual growth in luxury home prices worldwide has slowed. The Prime Global Cities Index shows a drop from 4.1% in the first quarter of 2024 to 2.6% in the second quarter of 2024. According to Liam Bailey, Global Head of Research at Knight Frank, the slowdown reflects the lack of further stimulus from interest rate cuts.
Lisbon’s Counter-Cyclical Trend
Despite the global slowdown, Lisbon is experiencing a counter-cyclical trend. House prices in the Portuguese capital rose by 4.7% in the second quarter of 2024, up from 1.8% in the previous quarter. This makes Lisbon the city with the second highest acceleration in house prices, trailing only Stockholm.
Ranking of Luxury House Price Increases
In the ranking of the highest increases in luxury house prices across 44 cities, Lisbon is in 8th place. The cities ahead of Lisbon include Manila, Mumbai, Delhi, Los Angeles, Miami, Nairobi, and Madrid. This indicates that the cost of buying a home in Lisbon is rising faster than in major cities like Singapore, Sydney, Monaco, or Tokyo.
Attractiveness to Foreign Investors
The price growth in Lisbon’s luxury home market highlights the city’s attractiveness to foreign investors. Francisco Quintela, CEO of Quintela + Penalva, notes that the Portuguese market continues to be appealing due to its economic stability. Liam Bailey adds that the quality of the real estate product in Lisbon is increasingly attracting international investors.
Read more on this story and the Portuguese property market on Idealista’s website.
