From this overview, you will learn what the state of the real estate market in Lisbon is, as well as how housing prices in the city and the region have changed over the quarter. We will take a detailed look at the prices for buying houses and apartments, for their long-term and short-term rentals.
When talking about Lisbon, what do we mean? The Lisbon District consists of 16 municipalities and includes the city of Lisbon, which in turn is divided into 24 districts. The district has a large area, so some municipalities are far from the city of Lisbon, which often affects the differences in property values.
Dynamics of real estate prices in Lisbon region
First, let's turn to Idealista.pt, the main resource for finding real estate in Portugal. The key indicator of property value on it is the average price per square meter, which is calculated automatically based on published ads for sale and rent of apartments or houses.
At a glance at both charts, it seems that real estate sales remained at about the same level during the year, while rental rates steadily increased. Whether this is really the case, a more detailed analysis will help to understand.
Sale of real estate in the municipalities of Lisbon region
The table above contains information about the average prices per square meter of properties listed on Idealista.pt (first three columns). The fourth column represents the percentage change in prices over the last three months, the fifth column represents the change over the current calendar year. Municipalities are ordered by decrease in the average price per square meter in October 2023.
The list is headed by the municipality of Lisbon, with an average cost per square meter of 5,401 euros. Since August, this cost has increased by 1.6%, and since October last year — by only 5.4%. Cascais, a suburb on the ocean coast and a great place to live, is firmly entrenched in second place. The price of a square meter in it in October 2023 was 4.637 euros, which is slightly, by 0.47%, lower than in August. But in one year, since October 2022, the price has increased by 10.6%.
In third place is the municipality of Oeiras with an average cost per square meter in October at 3,919 euros. Compared to August, the price decreased slightly, by 0.48%, while for the year, on the contrary, it increased by 10%.
It is interesting to note that the 3 most expensive municipalities in the Lisbon District are very far apart from each other: a square meter in Lisbon is more expensive than a meter in Cascais by at least 800 euros. A meter in Cascais is more expensive than a meter in Oeiras by more than 700 euros. But a meter in Oeiras exceeds 1,300 euros more expensive than in the next municipality Odivelas! When we analyzed prices last quarter, these price differences were smaller.
Odivelas belongs to a group of municipalities with an average cost per square meter between 2,000 and 2,700 euros. This group also includes Loures, Amadora, Mafra, Sintra, Vila Franca de Xira. Prices per square meter in these suburbs of Lisbon for the last three months did not change much: somewhere they slightly increased, somewhere - slightly decreased. Annual price growth in these suburbs was quite moderate, from 3.3% to 7.5%.
The list closes the group with an average cost per square meter from 1,200 to 1,800 euros: Lourinhã, Torres Vedras, Arruda do Vinhos, Sobral de Monte Agraço, Alenquer,, Azambuja and Cadaval. They also showed modest quarterly changes (-0.69 to + 4.64%). They showed higher annual growth rates, from 6.9% (Sobral de Monte Agraço) to 20.4% (Alenquer) and 22% (Cadaval).
How reliable are Idealista.pt's statistics?
Idealista.pt data is taken from home listings published only on this platform. Since this is the seller's price, we cannot be sure that real transactions will take place with the same. And some properties may be sold without being posted on this portal at all. To assess the accuracy of the data provided, it makes sense to refer to the report of the National Institute of Statistics of Portugal, which contains information on real transactions.
The Institute releases detailed reports every quarter. The latest information currently available is for the period April-June 2023. In the fall of 2023, we will not be able to learn about the current situation from this report, but we will be able to analyze the data for the second quarter and compare it with the information from Idealista.pt. This will help to assess the validity of the figures presented on Idealista.pt. To illustrate, let's look at a few municipalities in the Lisbon region.
The table shows the real average price per square meter for the sale of real estate, according to the National Institute of Statistics (column 1), the average price from ads on Idealista.pt (column 2), and the percentage difference between them (column 3).
In the second quarter of 2023, the actual average price of meters on sale was lower than indicated on Idealista.pt. For example, for Lisbon the difference was 24.02%, for Oeiras 19.93% and for Cascais 18.17%. At the same time, in some municipalities, the difference was not so significant. For example, in Loures it was only 2.91%.
The difference in prices between the data on Idealista.pt and the statistics of the National Institute of Statistics may be due to several factors. One of the reasons could be the different methodology of calculating average values. Furthermore, properties might have listed on Idealista could have been listed there in one quarter and actually sold in another. Likewise, it is possible that only properties where sellers were willing to reduce the price were included in the sales statistics. In addition, owners may have started with inflated prices in the hope of a subsequent reduction when selling.
Why do we still use data from Idealista.pt? Because it is the only source of the latest information. In the absence of more accurate data, these statistics allow us to quickly assess the current situation. However, it is important to remember that in real transactions, the conditions can be very different from the sellers' initial statements. We rely on this data, but always keep in mind that the prices on the site are only the sellers' initial offers.
Long-term rental of real estate in the municipalities of Lisbon region
There is less information about suburbs available for rent than there is about suburbs with properties for sale. This site may not have had new rental offers in all Lisbon suburbs between August and October.
As in the case of sale prices, the first place is again Lisbon with an average rental price per square meter in October of 20.9 euros. Compared to August, there is a slight increase of only 1.46%, but since last October the price has increased by 26.3%.
Lisbon is breathing down the neck of Cascais with a price per square meter in October of 19.9 euros, which is a slight drop compared to August (0.5%). The annual price growth in Cascais was also significant — 20.5%.
In most of the other municipalities surveyed, quarterly growth rates are quite modest, ranging from 0.63% to 3.91%. In Torres Vedras, the rental rate even decreased by 2.17%. At the same time, on a year-on-year basis, all municipalities showed growth. Except for Mafra, where the price increased by only 1.3%, other municipalities increased prices from 10.8% to 24.9%.
Daily rental properties in the municipalities of Lisbon region
Given that Lisbon attracts numerous tourists, potential real estate buyers may be interested in the prospect of short-term rentals to tourists in different municipalities of the Lisbon region. After all, the possibility of generating income from such rentals can be an important factor in deciding whether to buy a property.
Let's turn to All The Rooms service, which helps to make a preliminary estimate of the potential income from short-term rentals, depending on the location of the housing. This service uses data on the average rental price per day in each neighborhood and information on occupancy rates to make predictions. We will use the free version of the service, which provides information on the average cost of rent per day in different municipalities of Lisbon region for the last three months.
The table shows the number of properties published on the AirBnB travel rental service between August 1 and November 1, 2023, as well as the average price of 1 night's rent for that accommodation.
Unlike Idealista.pt, All the Rooms service does not provide information on the rental price per square meter. The average values presented in the table refer to all possible rental properties, including both villas and studios.
The city of Lisbon remains the absolute leader in terms of affordable rental properties. However, in terms of the cost of tourist rentals, it is behind at least 3 municipalities. Interestingly, in this quarter, the average price per night in Lisbon is lower than in Cascais and two other not so famous municipalities.
Real estate for sale in different neighborhoods of Lisbon city
The table below shows the average prices per square meter of properties listed for sale on Idealista.pt (columns 1-3). Column 4 shows the percentage change in prices over the last three months (rise or fall). Column 5 shows the change over the entire calendar year. Lisbon districts in the table are ordered by decreasing average price per square meter in October 2023.
The most expensive neighborhood, just like in previous reviews, is Santo António, a small and very densely populated area in the very tourist center of Lisbon. This neighborhood is home to famous places such as the Marquês de Pombal Square and the Avenida da Liberdade (Avenue of Liberty). The average price per square meter reached 7.602 euros, the result of a slight drop in the quarter (-0.3%) and a very modest annual growth (1.7%).
This area is followed by the nearby Estrela, Avenidas Novas, Misericórdia, Belém, Santa Maria Maior, Parque das Nações and Campo de Ourique with prices of 6,000 – 6,800 euros per meter. These locations are either in or bordering the city center. Some are located outside the center, such as Parque das Nações (Park of Nations), a modern neighborhood in the west of the capital. All these places are very prestigious, rich in attractions and attractive to tourists. Presumably, real estate buyers in these locations are interested in commercial opportunities or investments. Average prices per square meter in these areas have either slightly increased or slightly decreased compared to August 2023. The Belém neighborhood showed the most notable quarterly growth (11.82%). During the year, these districts mostly showed a slight increase in prices per square meter. The Estrela neighborhood is the leader in annual growth in this group (11.1%).
Then come the areas with prices from 5,000 to 6,000 euros per meter: Alvalade, Alcântara, Arroios, São Vicente, Areeiro. These locations are located in the heart of the city and can be attractive to various property buyers: both for private use and for those who see in them the potential for the development of tourist business. During the quarter, average prices in these areas mostly fell slightly except for Alcântara, which saw a 2 percent increase. In terms of year-on-year changes, on the contrary, there was mainly an increase at an average level, with a maximum of 12.3% in Areeiro.
The list of areas where the price per meter was between 4,000 and 4,800 euros: São Domingos de Benfica, Penha de França, Benfica, Ajuda, Carnide, Olivais and Santa Clara. Among them, there are both peripheral areas and those closer to the center. In half of them prices have slightly increased compared to August, in the other half — barely noticeable decrease. And on a year-on-year basis, most of them showed moderate growth, while only one of them, Carnide, showed a decrease of 7.6% since last October.
The list is completed by 2 districts with the cost per square meter from 3.800 to 4.000 euros: Marvila and Lumiar. In these areas, the cost per square meter has slightly decreased since August this year and moderately increased since October last year.
Let's now take a look at the rents in these areas of the city.
Rental properties in Lisbon city districts
From the table, we can see that the cost of long-term rental real estate is steadily increasing. Changes in prices over the quarter are diverse: somewhere prices have slightly increased, and somewhere have significantly increased or even decreased. If we discuss changes over the year, prices increased everywhere by values from 11.5 to 31.4%.
It is noteworthy that the areas with the highest rental prices coincide with those places where the cost per square meter in the sale of real estate is also high. These include Santo António, Santa Maria Maior, Misericórdia, Estrela and Campo de Ourique.
Daily rental properties in Lisbon
What's happening in the short-term rental market? Let's turn to All The Rooms service again. The table below shows the number of properties published on AirBnB between August 1 and November 1, 2023, as well as the average price of 1 night's rent for that property.
The data in the table does not refer to the average cost per square meter of accommodation. On the contrary, the main unit of measurement is the cost of 1 night of tourist rentals. Properties can be of different classes and sizes (from rooms and studios to villas).
According to this data, the most expensive areas for tourists visiting Lisbon in the fall include Parque das Nações (172.04 euros), Estrela (150.88 euros), Avenidas Novas and Marvila (135.24 euros). It is also interesting to note that the Arroios neighborhood offers the largest number of properties for daily rent (1,474).
It is noteworthy that some neighborhoods are not represented on All The Rooms (in the table, the data about them is marked as N/A). This may be since some data may not be available in the free version of the service.
The most expensive and cheapest properties to buy in November 2023
Idealista.pt currently offers 9,881 homes for sale. However, it is important to note that among these, there may be homes under construction as well as those that are in the design phase or require complete remodeling. Only homes that are ready to move into are included in the review.
The most expensive homes in the Lisbon region today
Luxury estate in Sintra on 42 hectares of land. The house is over 2,500 meters with 10 bedrooms and 2 bathrooms. There is a stable and a small equestrian complex. There are other buildings and a swimming pool. Energy efficiency class D.
Lovely pink villa on a plot of almost 0.4 hectares. Two-story house with 8 bedrooms and 10 bathrooms. There is a swimming pool on the property. The interior is a favorite. Energy efficiency class D. Located in the municipality of Cascais.
Minimal prices on finished homes that you can live in without having to start major renovations right away:
A somewhat strange ad for a 2 bedroom, 2 bath home for sale. The ad doesn't tell you the exact square footage of the house, how many floors it has, or what it looks like from the outside. There is no energy efficiency certificate. It is located in Azambuja municipality.
Single-story house of 60 square meters. Two bedrooms and one bathroom. Energy efficiency class F. Municipality of Arruda dos Vinhos.
The most expensive houses in the city of Lisbon
Palace in Estrela neighborhood. The area of the house is 950 square meters, the area of the plot is 2.335 sq. meters. 21 bedrooms, 9 bathrooms. Garage, central heating, garden. Energy efficiency class C.
Mansion with windows on the Cathedral of Lisbon. Area of 961 sq. m., 5 floors. Elevator, garage, central heating. Building of the 18th century. The decoration is from the "expensive and rich" series. I suspect it's being sold with furniture. Perhaps someone might want to turn it into a hotel. Santa Maria Maior neighborhood. It sold for $9 million last quarter.
The lowest prices for ready-made houses in Lisbon city, where you can live without starting major renovations immediately
A microscopic house (only 25 square meters) with one bedroom and one bathroom. The plot is 18 square meters. It says that the renovation is finished, but there are no real pictures. It is also stated that the whole neighborhood is being redeveloped and landscaped. Energy efficiency class C. Alcântara neighborhood.
Completely renovated two-story house of 60 square meters, 2 bedrooms and 2 bathrooms. No energy efficiency certificate. Marvila neighborhood.
Now let's look at the apartments, of which 25.324 are offered on the portal. For example, let's take T2, i.e., apartments with a living room and 2 bedrooms. In this review, I include only properties that are ready for occupancy.
The most expensive apartments:
Apartment of 205 square meters in a luxury residential complex. 2 bedrooms, 3 bathrooms, garage. The complex has a swimming pool, sauna, gym and its own area with a garden. Energy efficiency class C. Municipality of Cascais.
Apartment on 5 floors in a house without an elevator in the historic center of Lisbon. It has a surface area of 220 square meters. 2 bedrooms and 2 bathrooms. Energy efficiency class B+. Lisbon, neighborhood Misericórdia.
When searching for the cheapest apartment options, the first ads shown first are those with apartments closed for viewing, apartments with tenants and apartments of which only a part is for sale. There are also more options without a residential license. All of these options I will not show.
Adequate options for living start at:
Apartment of 116 square meters on the 3rd floor. House without an elevator. 2 bedrooms, 1 bathroom. Energy efficiency class D. Municipality of Cadaval.
The apartment is 65 square meters. Located on the 3rd floor, there is no elevator in the building. 2 bedrooms, 1 bathroom. Balcony. Energy efficiency class not specified. Municipality of Amadora.
If we discuss apartments in the city of Lisbon, more or less decent options start from:
Duplex of 54 square meters. 2 bedrooms, 1 bathroom. 5th floor, house without elevator. Energy efficiency class E. Ajuda neighborhood.
Apartment of 38 square meters in a semi-basement. 2 bedrooms, 1 bathroom. The house was built in 1937. There is air conditioning. Energy efficiency class C. Alcântara neighborhood.
What conclusions can be drawn about the state of Lisbon's real estate market this fall
The Lisbon region is often the most interesting region to live in Portugal. Prices for long-term rentals are rising at a higher rate than prices for apartments and houses for sale. This trend is particularly noticeable both in Lisbon itself and in neighboring municipalities, although, of course, it is more pronounced in the city itself. Property owners are trying to get the most money for it, probably targeting wealthier foreign buyers. However, data from the National Institute of Statistics indicates that real deals are concluded with lower average prices per square meter than we can see in the ads of sellers.
If we compare with our summer real estate review, it is noticeable that most of the options, both the most expensive and the cheapest, have updated. When it comes to the lower end of house and apartment prices, they have risen considerably. In general, the prices for houses and apartments in Lisbon and its neighborhoods do not even intend to fall. And this is logical because rental prices — both long-term and tourist — continue to rise.
If you are ready to buy a property, WithPortugal.com has an experienced real estate agent in Lisbon who can help you choose the best solution for your specific situation.
May you succeed in finding your perfect home in Lisbon!