The Lisbon Real Estate Market: Report Analysis

National impact and transaction volume

In 2023, the Lisbon Metropolitan Area (AML) accounted for 37% of all residential transactions in Portugal, totaling 52,673 properties sold. This not only underscores Lisbon’s market strength, but also the growing importance of neighbouring municipalities like Oeiras, Almada, Loures, and Cascais.

The average property price in the region reached €2,313/m², with sustained growth in high-value areas. For those looking to sell their property, this represents a promising window of opportunity—especially in sought-after neighbourhoods.

The city of Lisbon: consolidated quality

The municipality of Lisbon remains the most expensive market in Portugal, with average sale prices exceeding €4,000/m² and reaching over €8,000/m² in areas such as Avenida da Liberdade, Príncipe Real, and Lapa.

Historic neighbourhoods undergoing high-quality redevelopment continue to attract discerning buyers:

• Chiado and Baixa: strong demand from foreign buyers;

• Campo de Ourique and Estrela: family-oriented upper-middle-class zones;

• Parque das Nações: one of the few modern areas offering new builds.

Demand is driven by Portuguese families from higher income brackets, as well as an increasing number of international buyers, particularly from France, Brazil, and the USA, who view Lisbon as a safe and sophisticated destination for living or investing.

Many of these clients work with Engel & Völkers to access exclusive premium listings and personalised guidance.

The strength of Lisbon’s surrounding municipalities

With Lisbon’s city centre becoming increasingly expensive, many buyers and investors are now turning to the metropolitan outskirts, where affordable prices and high quality of life coexist.

Key highlights from 2023/2024 include:

• Oeiras (€3,019/m²): consistent appreciation, coastal living with urban convenience;

• Almada (€2,024/m²): growing interest from families and investors, especially near Caparica;

• Loures (€1,882/m²): undergoing urban redevelopment;

• Amadora (€1,803/m²): accessible prices and excellent transport connections;

• Mafra and Seixal: attracting young families entering the housing market.

These price points reveal above-average growth potential, appealing to both institutional and private investors, especially those working with experienced real estate consultants.

Rental market: pressure and scarcity

Lisbon’s rental market is currently facing significant supply shortages. Rising demand combined with limited inventory has pushed rental prices up sharply.

In 2023, the average rental price for new leases in Lisbon was €13.91/m², the highest in the country. Oeiras followed at €12.89/m², with similar trends observed in Cascais and Almada.

This situation has made it increasingly difficult for many families to rent within the city, though neighbourhoods like Marvila, Benfica, and Ajuda still offer comparatively more balanced rental rates.

Meanwhile, build-to-rent projects are gaining traction. These developments—designed specifically for long-term rental—could become a vital part of solving Lisbon’s housing imbalance. The experts at Engel & Völkers view this trend as key to creating a more sustainable rental market.

Licensing and new construction: signs of recovery

After a period of stagnation, Lisbon’s construction sector showed signs of recovery in 2023. The Lisbon Metropolitan Area issued 8,213 new housing permits, marking a positive shift in supply.

Top municipalities by number of new housing permits include:

• Lisbon: 1,390 units;

• Setúbal: 1,065 units;

• Loures: 1,041 units;

• Almada: 872 units;

• Oeiras: 701 units.

Despite this growth, the report highlights that these numbers still fall short of meeting demand. Speeding up planning approvals and encouraging affordable housing projects will be critical going forward.

For homeowners considering listing their property, this market imbalance could mean additional value gains. Selling your property with professional support ensures maximum visibility and best pricing, particularly in competitive neighbourhoods.

Buyer profiles and 2025 outlook

The report identifies two dominant buyer profiles:

• Domestic buyers, particularly families relocating or buying their first home;

• International investors, interested in renovation projects, medium-term rentals, and primary residences.

Experts predict that in 2025, Lisbon will maintain its strong investment appeal, with stable to slightly increasing prices, particularly in mid-to-upper and luxury segments.

The experienced real estate team at Engel & Völkers sees Lisbon’s international positioning, urban lifestyle, and long-term economic stability as key factors in the region’s sustained growth.

Lisbon remains Portugal’s top real estate market

The Engel & Völkers Market Report 2024/2025 makes one thing clear: Lisbon continues to lead the national real estate market. Whether in terms of transaction volume, price appreciation, or international demand, the capital and its surrounding municipalities offer strong fundamentals and diverse opportunities.

In a competitive and fast-moving market, partnering with an experienced real estate team can make all the difference. Whether for sales, leasing, or investment, Engel & Völkers provides deep market knowledge, global reach, and a commitment to delivering the best outcomes.

Lisbon is entering a new cycle—and the data is clear: this is the time to act.