This article highlights recent developments in the real estate market in Lisbon. You will get information about the dynamics of housing prices in the Portuguese capital and its surroundings over the last quarter. It will consider the cost of buying houses and apartments, as well as renting for long term and short term stays.
For someone who is new to Portugal, it can be difficult to accurately navigate the boundaries of Lisbon. Lisbon as a city (municipality) is one territory, but the Lisbon District is another. Moreover, there are several approaches to the definition of Lisbon District, which are used by statistics and services with real estate listings. For example, there is Área Metropolitana de Lisboa and there is Grande Lisboa. Área Metropolitana de Lisboa covers not only Grande Lisboa, but also the Setubal peninsula.
In this review, we will study only Grande Lisboa (Greater Lisbon), which covers the city of Lisbon itself and about ten neighboring municipalities. It is worth noting that the city of Lisbon itself consists of 24 districts.
Dynamics of real estate prices in Greater Lisbon
To begin our analysis, let us turn to the statistics provided by the portal Idealista.pt, which is considered one of the largest aggregators of real estate listings in Portugal. The main indicator of real estate prices on this resource is the average cost per square meter. This indicator is calculated on the basis of all ads for sale and rent of real estate, including apartments, houses, ruins, estates and other types of real estate presented on the site.
At the time of writing, the most recent data available on the portal is for June 2024. Usually Idealista promptly provides price statistics for the last full calendar month (in our case, this would be July), but apparently the vacation season affected the speed of data preparation.
At first glance, the average prices per square meter for selling and renting real estate increased slightly over the year. At the same time, it seems that sale prices grew evenly, while rental prices showed different growth rates during the year. In the following, we will study these trends in more detail.
Sale of real estate in the municipalities of Lisbon Region
The table above shows the average prices per square meter of real estate published on Idealista.pt (first three columns). The fourth column shows the percentage change in prices over the last three months, and the fifth column shows the change over the calendar year. The municipalities in the table are ordered in descending order of the average price per square meter as of June 2024.
The price per square meter is the highest in the municipality of Lisbon, 5.642 euros in June this year, which is the result of a moderate increase since April. Compared to June last year, the price increased by 5.7%, which in principle can also be considered a moderate rate.
In second place is Cascais, Lisbon's trendiest coastal suburb. In June 2024, the price of a square meter here was 5,023 euros, which was the result of a barely noticeable quarterly increase (by 0.76%). Over the year, prices rose by 8.6%.
In third place is Oeiras with an average price per square meter of 4,017 euros in June. Compared to April, the price increased by 1.7% and the annual increase amounted to 3.3%.
The difference between the three most expensive municipalities in the Lisbon District is striking: the price per square meter in Lisbon is 619 euros higher than in Cascais. In turn, the price per square meter in Cascais is 1,005 euros higher than in Oeiras. And in Oeiras, a square meter costs 1.273 euros more than in the next municipality on the list, Odivelas.
The group of municipalities with an average price per square meter between 2,100 and 2,800 euros includes Odivelas, Loures, Amadora, Mafra, Sintra and Vila Franca de Xira. Prices per square meter in these Lisbon suburbs have changed little over the last three months, showing only a slight increase. Annual price growth has also been moderate, with the most notable increase in Sintra, where prices have risen by 7% since June 2023.
Finally, 7 municipalities with an average price per square meter between 1,100 and 1,900 euros: Torres Vedras, Arruda dos Vinhos, Lourinhã, Alenquer, Azambuja, Sobral de Monte Agraço and Cadaval. In these neighborhoods, quarterly price changes ranged from -1.26% to +5.48%. Annual price increases show an even greater variation. In this group, the two municipalities with the highest growth in the region stand out: Arruda dos Vinhos (18.8%) and Torres Vedras (10.4%). Moreover, this growth was not stopped even by the quarterly decline in prices. At the same time, Sobral de Monte Agraço was the only municipality where the price decreased by 2.2% over the year, despite the fact that its quarterly growth (5.48%) was the highest among all municipalities in the region.
How reliable are Idealista.pt's statistics?
The data provided by Idealista.pt is taken from real estate listings published exclusively on this online platform. As the prices are set by the sellers, they do not always accurately reflect the real state of the market. Moreover, some properties may be sold without prior advertisement.
In order to assess the accuracy of the data presented, we turn to the report on actual transactions published by the National Institute of Statistics of Portugal. The latest information available covers the period from January to March 2024 (first quarter). Although we cannot obtain current data, we can analyze the figures for the first quarter of 2024 and compare them with the information from Idealista.pt. This approach allows us to assess the validity of the numbers reported on Idealista.pt. As an example, let us compare the average prices per square meter in several municipalities of the Lisbon District.
The table contains data on the actual average price per square meter for real estate sales provided by the National Institute of Statistics (column 1). The average price per square meter according to advertisements on Idealista.pt (column 2), and the percentage difference between these figures (column 3).
In all the municipalities studied, prices on Idealista.pt were higher than the data provided by the National Institute of Statistics. However, the degree of this excess varies considerably. The largest discrepancy, between 20% and 32%, is observed for Lisbon, Cascais and Oeiras. At the same time, the minimum difference is observed in Vila Franca de Xira and Odivelas, where it is only 3-5%. In the remaining municipalities, such as Mafra, Amadora, Loures and Sintra, the difference is slightly larger, ranging from 9% to 14%.
In our spring review of the Lisbon real estate market, we noticed that according to the National Institute of Statistics, in Q4 2023, properties in Cascais were actually selling for more than Lisbon properties by an average of 90 euros per meter. This was surprising. As you can see from the Q1 2024 information, the situation has returned to normal and Lisbon continues to be more expensive than Cascais. Probably in Q4 2023 there was a transaction of some large and prestigious property in Cascais that affected the overall statistics.
When it comes to the Q1 2024 we are currently considering, there are various ways to explain such significant differences between the average prices according to Idealista.pt and the National Institute of Statistics. One of the factors for the differences could be the use of different methods of calculating average prices. It is also worth considering that properties listed on Idealista may have been listed for sale in one quarter and sold in another. It's even more likely that most of the properties sold were owned by sellers willing to lower the price. Alternatively, the owners may have intentionally inflated the initial price, expecting to reduce it during negotiations with buyers.
We continue to analyze data from the portal Idealista.pt, despite possible reservations, as it is one of the most up-to-date sources of information. It should be taken into account that the conditions of real transactions may differ significantly from the initial prices stated by sellers. Therefore, for those who plan to buy real estate, it is recommended to contact a real estate agent in Lisbon and its surroundings, who will help to take into account all the details and find the best offer that meets the needs of the buyer.
Long-term rental of real estate in the municipalities of Lisbon Region
There is considerably less information about the suburbs available for rent than there is about properties for sale. It is likely that from April to June, Idealista did not publish any rental listings in some Lisbon suburbs.
As in the case of sale prices, Lisbon again takes the lead. The average rental price per square meter in June was 21.5 euros. Compared to April, the price has not changed much: there is a slight decrease, but it is at the level of statistical error. Over the year, the price has increased by 8.3%. In Cascais, the price per square meter in June was 20.3 euros, which was the result of an increase of 1.5% from April. The annual increase amounted to 9.4%.
In the remaining municipalities, the rate of change in rental prices varied both quarter-on-quarter and year-on-year. On a quarterly basis, prices mostly increased, although in 3 municipalities we see a decrease. Mafra was the municipality with the most notable decrease (2.99%). But the most notable increase, 8.75%, was shown by Lourinhã.
Annual changes were somewhat more homogeneous, at least prices did not decrease but only increased: from 3.1% in Odivelas to 15.3% in Mafra and Amadora.
Daily rental properties in the municipalities of Lisbon Region
Given Lisbon's appeal to tourists, real estate buyers may want to consider short-term rentals in its suburbs. To estimate the potential profit from such rentals, we turn to All The Rooms. This tool collects data on average daily rental rates and occupancy rates in specific neighborhoods to help predict income from tourist rentals. We will use the free version of the service, which provides data on the average daily rent in different municipalities of the Lisbon region for the last three months.
The table above shows the municipalities of Greater Lisbon with information on the number of properties listed on the AirBnB tourist rental site between April 1 and July 1, 2024, as well as the average rental price per night in them.
Unlike the Idealista.pt platform and the National Institute of Statistics, the All the Rooms service does not provide data on rental costs per square meter of housing. The table presents data for all types of real estate, without taking into account their size.
Lisbon still leads in the number of available rental properties, but in terms of the cost of tourist rentals it is behind the municipality of Azambuja, where offers are much lower. Cascais was on par with Lisbon in this quarter. If you are considering buying a property as an investment, it is important to consult an experienced real estate agent who is familiar with the peculiarities of the different areas of the Lisbon district. Such an expert will be able to help you choose the most promising option for tourist or long-term rentals.
Real estate for sale in different areas of Lisbon city
The table shows the average prices per square meter of properties for sale on Idealista.pt (columns 1-3). The fourth column shows the percentage change in prices over the last three months, while the fifth column shows the changes over the whole calendar year. The Lisbon districts in the table are ranked in descending order of average price per square meter as of June 2024.
The most expensive square meter is in Santo António, a compact neighborhood in Lisbon's historic center. This neighborhood is known for such iconic places as Marquês de Pombal Square and Liberty Avenue. The average price per square meter in Santo António reached 7.774 euros. Since April, the price has remained virtually unchanged, since last June too.
The next group of neighborhoods with prices per square meter between 6,000 and 7,000 euros are Estrela, Avenidas Novas, Campolide, Misericórdia, Belém, Santa Maria Maior and Campo de Ourique. These neighborhoods are located in the central part of the city and in the south and are known for their many attractions. It is likely that potential buyers of real estate in these areas are interested in the possibility of commercial use of their acquisitions. Average prices per square meter in these areas varied: mostly increasing at different rates, but also decreasing somewhere. The largest quarterly price drop (by 1.98%) is observed in Santa Maria Maior, and the largest quarterly increase (by 3.92%) in Belém. In terms of annual changes in this group, the most significant were: a decrease of 1.6% in Campo de Ourique and an increase of 12.7% in Campolide.
The next group of districts includes those where the price per square meter ranges from 5,000 to 5,900 euros: Alvalade, Alcântara, Parque das Nações, Arroios, São Vicente, Areeiro and Beato. Over the last quarter, average prices in these neighborhoods have mostly declined. The most notable was the price drop in Parque das Nações (6.51%). Only 2 neighborhoods in this group showed quarterly growth (Arroios and São Vicente), and it amounted to about 1%. When it comes to annual trends, Parque das Nações (12.5%) is again the leader in terms of the rate of decline. The most significant annual growth in this group and in the whole of Greater Lisbon is in Beato (23.2%).
The list of areas where the price per meter ranged from 4,000 to 4,800 euros: São Domingos de Benfica, Lumiar, Benfica, Penha de França, Ajuda, Carnide and Olivais. Both peripheral and more central neighborhoods are represented in this group. During the last quarter, prices varied differently, ranging from -0.80% (Penha de França) to +5.48% (Ajuda). However, over the year, all districts showed an increase, from 0.7% (Carnide) to 15.7% (Olivais).
At the end of the list is the district of Santa Clara, where a square meter in June cost 3.898 euros, which was the result of a slight quarterly increase (1.19%) and a moderate annual decline (3.2%).
Rental properties in Lisbon city districts
As we can see from the table, prices have not changed much over the last 3 months. They either increased slightly or decreased slightly. The growth of 9.28% in Marvila neighborhood and decrease of 4.52% in São Domingos de Benfica are noteworthy.
Analysis of annual trends shows price growth in almost all districts. Marvila stands out from the rest, with a price increase of 29.5%. Campolide has seen a price increase of 17.7%. But in the rest of the neighborhoods the price increase was not so dramatic, from 0.1% to 12.4%. In two neighborhoods (Campo de Ourique and Belém) prices even decreased slightly.
For some neighborhoods, there is no information on year-to-year changes, which likely means that rental listings in them were not on the site in June 2023, so no comparison is possible.
Daily rental properties in Lisbon
Let's take a look at the state of the short-term rental market based on information from All The Rooms. The following table shows the number of properties listed on Airbnb from April 1 to July 1, 2024, and the average price per night.
As we already know, the All The Rooms platform provides data on the price per night, not the average cost per square meter. The most expensive neighborhoods for tourists in Lisbon this summer were Alvalade (265 euros per night), Areeiro (209 euros), Parque das Nações (154 euros) and Avenidas Novas (143 euros). At the same time, the Arroios neighborhood, where the supply of tourist rental properties was the largest (1,874), was one of the cheapest, with 97 euros per night.
Some neighborhoods in Lisbon are missing from the All The Rooms data and are marked N/A in the table. This is probably due to limitations of the free version of the service, which may not include complete information about all neighborhoods.
The most expensive and cheapest properties to buy in August 2024
Currently, the Idealista.pt website offers 10,702 homes for sale. Nevertheless, it should be taken into account that among the presented properties there may be those that are under construction, under design or require significant renovation. For the purposes of our analysis, we will focus exclusively on those properties that are fully ready for occupancy.
The most expensive homes in Lisbon Region today
24.000.000 euros
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. In a past review it was offered cheaper, for 19 million.
18.000.000 euros
Another estate in Sintra with an area of 5.9 hectares. The main house was built at the end of the 19th century and is furnished more like a palace. There are 2 other houses, and it is possible to develop part of the property. There is a garden and a swimming pool. It looks interesting and old, but renovation is clearly needed. There is no energy efficiency rating. And this is the estate we saw in the spring review.
15.000.000 euros
Large house of 706 square meters on a plot of 0.46 hectares. The house has 8 bedrooms and 10 bathrooms. The property has a swimming pool and a garden. Energy efficiency class D. Located in the municipality of Cascais. We saw this property in our February review for the same price. Still unsold since then.
15.000.000 euros
Two-story house of 1,311 square meters with 8 bedrooms and 8 bathrooms. The property is 5.9 hectares in size. Although the house was built in the middle of the 20th century, materials typical of the 18th and 19th centuries were used for the decoration. Inside it looks like an aristocratic house. Energy efficiency class E. Mafra municipality. And we saw it in the spring review.
The cheapest prefab homes that don't require immediate major repairs
75.000 euros
House of 102 square meters with 2 bedrooms and 2 bathrooms. No energy efficiency certificate. It is located in the municipality of Azambuja. It is also familiar to us from the spring review.
77.000 euros
One-story house of 30 square meters. One bedroom and 2 bathrooms. No energy efficiency certificate. Plot of 29 square meters. Municipality of Torres Vedras.
77.500 euros
One-story house of 63 square meters. One bedroom and one bathroom. Plot of 700 square meters. Energy efficiency class E. Municipality of Alenquer.
The most expensive houses in the city of Lisbon
9.500.000 euros
Palace in Estrela neighborhood. The house has a surface area of 950 square meters and a plot area of 2.335 square meters. 21 bedrooms, 9 bathrooms. Garage, central heating, garden. Energy efficiency class C. And this is the house we saw in the previous review.
8.900.000 euros
Mansion of 1.470 sq.m. on a plot of over 2.000 sq.m. 5 bedrooms, 8 bathrooms. Central heating, air conditioning system. Home theater. Garage for 10 cars. Swimming pool. Energy efficiency class B. Lisbon, Belém district.
8.200.000 euros
Mansion with windows on the Cathedral of Lisbon. Area 961 sq. m., 5 floors. Elevator, garage, central heating. Building of the 18th century. Decorated from a series of "expensive-rich". Santa Maria Maior neighborhood. We have seen this property in our quarterly reviews for what seems like a year now.
Ready-made residential properties in Lisbon that can be used without the need for major renovations right away
180.000 euros
House of 30 square meters with 2 bedrooms and 1 bathroom. Plot of 105 meters. Energy efficiency class F. Marvila neighborhood.
220.000 euros
House of 36 square meters with 1 bedroom and 1 bathroom. Major renovation including roof, replacement of sewerage and wiring was done in 2018.PVC windows, automatic roller shutters, air conditioning. Good thermal and sound insulation. Sold with equipment in the kitchen. No energy efficiency certificate. São Vicente neighborhood.
Now let's take a look at apartments, of which 23.077 are offered on the portal. For example, let's take T2, i.e., apartments with a living room and 2 bedrooms. We will study only apartments that are ready for immediate move-in, i.e., those that are completed, not rented out, not sold in parts, not requiring major repairs and whose photos do not clearly show mold on the walls.
The most expensive apartments
3.800.000 euros
Apartment of 195 square meters in a luxury apartment complex by the ocean. 2 bedrooms, 3 bathrooms, garage. The complex has a swimming pool and spa. Energy efficiency class B. Municipality of Cascais. It is not indicated whether the house is commissioned, but since we have seen this option in the last review, there is a possibility that it is commissioned.
2.685.000 euros
Duplex in a new residential complex. The area is 219 square meters. 2 bedrooms and 4 bathrooms. Private garden. Energy efficiency class C. It says that it was built this year and that it is luxury housing, however, without heating. Lisbon, Estrela neighborhood. And this is the apartment we saw last quarter. I wonder who would be interested in a luxury apartment with no heating and such a low energy efficiency class these days?
2.500.000 euros
Apartment in a luxury residential complex in Cascais, built in 2023. The area of the apartment is 133 sq.m.. It has 2 bedrooms and 3 bathrooms. Balcony overlooking the ocean and at the same time the construction site. The building has a swimming pool and gym. 2 parking spaces. Energy efficiency class A.
The cheapest apartments in acceptable condition
110.000 euros
Apartment of 67 square meters. 2 bedrooms, 1 bathroom. The house was built in 1984. Energy efficiency class D. Municipality of Vila Franca de Xira. We also saw this one last quarter.
120.000 euros
The apartment has an area of 111 square meters. The house was built in 1995. 2 bedrooms, 1 bathroom, a pantry in the apartment itself and a storage cage in the house. 4th floor, no elevator. Renovation has been done recently. Energy efficiency class D. Municipality of Lourinhã.
123.000 euros
The apartment is 79 square meters. 2 bedrooms, 1 bathroom. 5th floor in a building without an elevator. Energy efficiency class E. Municipality of Alenquer.
The cheapest apartments in a reasonable condition in the city of Lisbon
149.500 euros
Apartment of 35 square meters. 2 bedrooms, 1 bathroom. One of the bedrooms is without a window, so it is probably not quite correct to position the accommodation as T2. Kitchen and living room are combined. Energy efficiency class F. Estrela neighborhood.
159.900 euros
The apartment is 79 square meters. Sixth floor in a building without an elevator. 2 bedrooms, 1 bathroom. Energy efficiency class C. Santa Clara neighborhood. And we saw this one in the February price review, so it's been on the market for at least six months.
165.000 euros
Apartment of 52 square meters. 2 bedrooms, 1 bathroom. The house was built in 1993. Energy efficiency class E. Ajuda neighborhood.
What has changed in the Lisbon real estate market offer this summer
To conclude the analysis of statistics and current market offers, several important observations should be emphasized. Firstly, properties, whether houses or apartments, with high price tags often remain on the market for long periods - sometimes months and sometimes even quarters. Whether it will find its buyers is very difficult to predict. Almost all the most expensive housing options, which met in this review, migrated to it from the previous one. At the same time, there are new luxury options. It seems that the supply of expensive real estate exceeds the demand for it, or there is a demand, but not for such money. Potential buyers of expensive houses and apartments should take this into account.
Secondly, some variants of the cheapest Lisbon real estate from the last review are also not sold. However, it is still noticeable that the offers in the cheapest real estate segment have updated more. The cheapest options often do not shine with comfort (small size, inconvenient layout) and safety, although, as already mentioned, this review included houses and apartments only in normal condition.
Third, a comparison of the statistics of sellers' offers with the statistics of actual transactions shows that housing is purchased at prices lower than those requested by the seller. It is important to remember that we are talking about prices per square meter. In the most expensive municipalities of the Lisbon region, this difference can reach 20-32%.
We hope that this overview has helped you navigate the Lisbon real estate market. If you are interested in the topic, you can contact a real estate agent in Greater Lisbon through our website, which will make the process of finding your ideal home easier, because you will not need to search for individual real estate agencies in Lisbon, Cascais, Sintra or other municipalities in the region.
Well, if you're here to learn about Portugal, come back to the blog on the site, as there you can find material on all aspects of Portuguese life.
