International Property Investment Surges in Lisbon's Booming Real Estate Market

Explore the rise of international property investment in Lisbon and the lucrative opportunities it presents for investors in 2023.

In 2023, the Lisbon Urban Rehabilitation Area (ARU) saw a total of 4,750 residential units being sold, amounting to a staggering €2,217.7 million. Out of these properties, 1,580 were purchased by foreigners, totaling €911.8 million. While the international activity in terms of capital invested remained steady with a slight increase of 0.2 percent, the number of transactions actually decreased by 7 percent compared to the previous year.

When it comes to the nationalities driving the international demand for properties in Lisbon, North Americans took the lead with 16 percent of the properties acquired, followed by the French at 13 percent, and the British at 9 percent. Interestingly, investors from the United Kingdom and North America showed an increase in both the number of properties acquired and the money invested, surpassing the French who were the leaders in foreign investment in 2022.

On the other hand, the French experienced a decline in both the number of properties acquired (21 percent) and the money invested (28 percent) in 2023. China, Brazil, and Germany rounded out the top five nationalities, all of whom saw significant decreases in both property acquisitions and investments. China, in particular, saw the largest decline among all nationalities, cutting its activity in half.

For Portuguese buyers, 3,170 properties were acquired in 2023, totaling €1.305.9 million. This marked a 14 percent decrease in the number of transactions and a 23 percent drop in the amount invested compared to the previous year.

In terms of specific neighborhoods within the Lisbon Urban Rehabilitation Area, parishes such as Estrela, Santo António, and Arroios saw a higher demand and significant international investment. Estrela led the pack with 190 properties purchased by foreigners, accounting for 17 percent of foreign investments at €155.4 million. Conversely, parishes like Alcântara and Campolide experienced a decrease in international buyer interest.

The real estate market in Lisbon's Urban Rehabilitation Area in 2023 saw a mix of trends, with some nationalities increasing their investments while others saw declines. The overall market remained stable in terms of capital invested, but the number of transactions decreased, signaling a potential shift in buyer preferences.