The Lisbon luxury residential real estate market sees a 2.4% increase in property values in the first half of 2025, outpacing global averages. Discover why Lisbon remains a top destination for high-end buyers, what’s driving demand, and the key trends shaping the city’s prime property market this year.
Lisbon’s Luxury Real Estate Market Grows 2.4% in Early 2025
The luxury residential real estate market in Lisbon continues its upward climb, according to the latest Savills World Cities Prime Residential Index. In the first half of 2025, values of prime properties in Lisbon increased by 2.4%, affirming the city’s status as one of Europe’s most attractive destinations for high-end buyers and investors.
This growth exceeds the global average of 0.7% across the 30 leading cities tracked by Savills, underlining Lisbon’s resilience in a climate of economic and geopolitical uncertainty.
Prime Rents Outpace Property Values Globally
In a notable trend for 2025, prime residential rents are rising even faster than property values worldwide. Globally, rents climbed 2%, as investors shift their focus toward income-generating assets and tenants adapt to volatile markets. In Lisbon, limited stock and growing demand from both domestic and international tenants have reinforced rental growth, making luxury property investment particularly appealing.
Lisbon vs. Other Leading Global Luxury Markets
While Lisbon enjoys steady, balanced growth, other cities have seen even more dramatic gains:
- Tokyo leads global appreciation with an 8.8% increase in prime property values, driven by chronic shortages and robust demand.
- Berlin, Dubai, and Seoul all saw value increases exceeding 5%, largely due to limited new supply and strong buyer interest.
- Lifestyle destinations like Amsterdam, Cape Town, Sydney, and Lisbon attract sustained attention due to quality of life, unique culture, and international appeal.
Savills forecasts that cities such as Cape Town, Seoul, Tokyo, and Singapore will lead price appreciation in the second half of 2025, with estimated gains between 6% and 7.9%. Lisbon’s projected growth remains positive, with values expected to rise a further 1.7%—a steady and sustainable pace.
Resilient Demand Keeps Lisbon in the Global Spotlight
Lisbon continues to stand out in the luxury real estate segment for several reasons:
- Quality of life: Mild climate, rich culture, and strong safety ratings.
- International appeal: Lisbon is now firmly on the radars of global buyers seeking lifestyle as well as financial value.
- Limited luxury stock: Price appreciation remains underpinned by a shortage of available prime properties, which supports healthy, balanced growth.
- Market maturity: After significant increases in recent years, price evolution in 2025 is more measured, pointing to a healthier and more sustainable market over the long term.
Outlook for the Rest of 2025
Despite a softer overall pace compared to 2024 (when prices grew 2.2%), Lisbon’s luxury residential market continues to demonstrate strength and resilience. The positive momentum is sustained by:
- Robust local and international demand
- Increased sophistication among buyers
- Continued interest in income-generating rental properties
With the market now evolving in a more balanced way, experts expect Lisbon will maintain its appeal as a prime luxury property destination throughout the remainder of 2025 and beyond.
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