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The Real Estate Market in Lisbon

Where to buy, where to invest, where to live in Lisbon…

Your investment project

The Country’s assets

Centuries of History 

Since it was called Olissipo in the eighth century BC until its reconstruction coordinated by the Marquis of Pombal at the end of the eighteenth century, the cultural and traditional heritage of Lisbon is still visible today in its monuments and the old buildings of the historical centre of the city

The city of seven hills

Lisbon is one on the trendiest European capitals: gastronomy, culture, museums, walks… Endless activities for all. Located a couple of hours from many other European capitals, Lisbon is the ideal destination for a short break. A visit that you will no doubt want to extend … life is so good in Lisbon!

2019: Lisbon leads European real estate investment

Facts and figures

  • Lisbon is the largest city and the capital of Portugal.
  • It is also the capital of the district of Lisbon, Greater Lisbon and the Lisbon metropolitan area.
  • Its area is 84.6 km2 with a population of 530,000 inhabitants, a quarter of them living below the poverty line.
  • Its population has been declining for 30 years in favour of its periphery which counts over 2.2 million inhabitants.
  • The population density is 948 inhabitants per km2.
  • Since 6 April 2015, Fernando Medina, a socialist, is the mayor of Lisbon.
  • The language spoken in Lisbon is Portuguese. Latin of origin and with close to 200 million speakers, Portuguese is the third most spoken European language in the world.
  • Lisbon is located between the coast of the Atlantic Ocean to the west and the Mar da Palha (Straw Sea) to the east.
  • Lisbon in on the right bank of the Tagus estuary.
  • Two bridges connect the city to the south bank: the April 25th Bridge and the Vasco da Gama Bridge.
  • Nicknamed the city of seven hills, Lisbon has a unique topography allowing for many viewpoints over the entire town.
  • This beautiful city exudes a very pleasant atmosphere. To stroll through its gorgeous cobblestoned alleys on your own, with friends or family is a truly idyllic experience.
  • Lisbon is the largest city and capital of Portugal. It is also the capital of the Lisbon district, the Greater Lisbon and the Lisbon metropolitan area. Its surface area, 84.6 km2, and its population, 530,000 inhabitants, a quarter of whom live below the poverty line. Its population has been declining for 30 years in favour of its periphery, which has some 2.2 million inhabitants.
  • The population density is 948 inhabitants per km2.
  • The mayor of Lisbon is the socialist Fernando Medina, since 6 April 2015.
  • The language spoken in Lisbon is Portuguese. A language of Latin origin, the third most spoken European language in the world, by nearly 200 million people.
  • Lisbon is located between the Atlantic Ocean coast to the west and the sea of straw to the east. Lisbon is located on the right bank of the Tagus estuary. Two bridges connect the city to the south shore: the 25 April bridge and the Vasco da Gama bridge.
  • Known as the city of 7 hills, Lisbon benefits from an atypical topography that allows you to have many points of view over the whole city. This magnificent city, known for its paved floors that embellish each of its alleys, exudes a very pleasant atmosphere and walking within it, alone, in pairs, with friends or family, is a truly idyllic experience.
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Portela International Airport is 7 kilometres from the centre of Lisbon. It is only 20 minutes away by shuttle bus from the city centre.


from major European capitals, Lisbon stands out with its privileged geographic location.


With 300 days of sunshine per year and temperatures of 15-20° in winter, Portugal is rightly considered as the “Florida of Europe”

The Lisbon metropolitan area has experienced the highest increases in prices and the highest number of transactions in 2015. Traditionally the most dynamic, it suffers in some places of a shortage of offers.

Since 2013 there has been a big increase in the number of European citizens moving to Portugal. This number keeps growing today.80% are retirees, but they are joined by entrepreneurs (self-employed professionals, technicians, architects, engineers, artists, health professionals, etc.), who all benefit from the NHR status and are only taxed 20% on the revenue they generate and collect in Portugal.

In addition to its sunny climate, the country has many assets: property prices are very low compared with those of most of its European neighbours.

They are on average 2,500 euros per square metre in Portugal for properties of good quality, roughly one third of standard French prices, for example.

Today’s homebuyers have good potential for capital gains: prices in the historic city centres of Lisbon and Porto are catching up after the declining years of the crisis caused by the lack of credit availability.

Lisbon: one of the best destinations in the world to invest in

Price per sqm (average) – 2021











Future of the Portuguese real estate market

The current circumstances of the Portuguese economy are favourable to the development of the rental market. The rental law has been reformed, making the rental market more dynamic. It has, for example, simplified and accelerated eviction procedures among others.

Lisbon’s property market in 2021

Prices per m2 in Lisbon are still very reasonable, very attractive, compared with other European capitals. The price per m2 varies according to the districts of the city:

Lisbon Prime / Luxury Property Prices

Updated: September 2021

NeighborhoodHabitantsHigh-end (€/sqm)Luxury (€/sqm)
Avenida da LiberdadeInternational7 500€10 500€
ChiadoInternational / National 7 000€10 000€
CascaisInternational / National 6 000€10 000€
EstorilInternational / National 5 500€8 000€
Principe RealInternational / National 7 000€9 000€
Centre HistoriqueInternational / National 6 000€7 500€
Estrela / LapaInternational / National 5 500€7 000€
Avenidas NovasInternational / National 5 200€6 500€
Campo de Ourique / AmoreirasInternational / National 4 900€6 500€
Secteur bord du TageInternational / National 4 800€6 000€
Colina de SantanaInternational / National 4 700€5 500€
Restelo / BelémInternational / National 4 700€5 500€
Alvalade / Campo GrandeNational 4 500€5 500€
Sete Rios / Praça de EspanhaNational4 000€5 000€
Alcântara / JunqueiraInternational / National 4 000€5 000€
Parque das Nações / ExpoInternational / National 3 000€5 000€
Braço de Prata / MarvilaInternational / National 4 000€4 500€

Lisbon Renovated Properties Prices

Average real estate prices in Lisbon

Updated: 2021

NeighborhoodHabitantsRenovated property (€/sqm)
AjudaNational 4 000€
AlcântaraNational 3 800€
ArroiosNational 4 200€
AnjosNational3 600€
Avenidas NovasInternational / National 5 500€
BelémInternational / National 5 000€
Campo de OuriqueInternational / National 5 500€
EstrelaInternational / National 5 500€
MarvilaNational 3 700€
MisericórdiaInternational / National 6 000€
Parque das NaçõesInternational / National 5 400€
Penha de FrançaNational 3 600€
Santa Maria MaiorInternational / National 5 500€
Santo AntónioInternational / National 6 500€
São VicenteNational 4 200€

The most expensive districts

Prices per m2: between €4,000 and €7,000 euros/m2 rising further in the most upmarket areas of these districts (sometimes up to €9,000/m2).

The stable districts

The districts with a good/strong potential

Favourable rental market

The market is also positive in the rental sector of the property market. There is currently a high demand from newcomers, retired or active expats, who wish to rent quality properties mostly in Lisbon, Porto or Algarve. The rental market is also very dynamic in Lisbon, Porto, Coimbra, Aveiro and other cities with a student population. Profitability is currently very good in Portugal. For properties in consolidated areas and therefore risk-free, returns vary between 4 % and 7 % gross.

There are a few points that must be checked before investing in Portuguese real estate. When buying an occupied property for example, please make sure that the type of lease in place is a recent one as, in older versions, rents can be capped at very low prices which severely limit the profitability of the property. It is also strongly advised for foreign investors to buy newly built or renovated properties: old properties often have structural issues, non-existing co-properties or have fallen behind in terms of payments. It can be very difficult to carry out any renovation work on the common parts.

There are also aspects of the law that are specific to Portugal: there is no withdrawal period and the properties are sold in “área bruta” (gross area), not in net area. So, it is advisable to collaborate with specialists who know the local customs and regulations and can advise you to avoid bad surprises.

The wealthiest and most central residential districts, very popular with the Portuguese bourgeoisie. They are very pleasant and are the most expensive per m2.

District built in the early 20th century, central with straight and well-organised avenues. This district boasts a revival with real estate renovations programmes. The El Corte Inglês stores started a new dynamic by moving here a decade ago.

The typical districts of the historic centre, currently being revolutionized and renovated. Good location, full of charm and previously abandoned… They offer a great potential for return.

Popular districts for Lisboans for their easy access and shops.

District currently being revitalized, particularly thanks to rental investments and hotels.

Prices per m2 in Lisbon are still very reasonable, sometimes very attractive compared with other European capitals.

The price per m2 in the city varies district by district: Lapa, Restelo, Chiado and Principle Real as well as the first section of the Expo district are the most expensive (between 3,500 and 5,500 euros/m2) with even higher prices in the most exclusive areas of these districts (sometimes reaching €8,000/m2).

Alfama, Alcantara, Saldanha, Campo de Ourique, Campolide, Avenidas Novas are stable districts (between 2,500 and 5,000 euros/m2)

The districts with a good, or even a strong potential are Graça, Campo Santana and Intendente (between €2,800 and €4,500/m2).

There are also renovation programmes for entire buildings, sold as flats once the work is completed. These can also be good investment opportunities. Financially, this usually allows you to spread the payment of your apartment over the duration of the work as it progresses. In a rising market, it is always worth buying prior to receiving the completed property. Finally, many owners offer a finance plan for your property, and sometimes even offer to manage your property during your absence (short term rental).

Finally, for more ambitious projects, there are still a few “Palacetes” for sale, whose prices vary depending on the amount of work to be carried out and their location. They are generally between 800 and 2,000 m2 in area, with prices varying between 2,000 and 3,000 euros per square metre.

Renovation costs in Lisbon are roughly between 700 and 1,200 euros per m2 depending on the level of service and quality desired. We recommend that you surround yourself with good advisors (architect, project manager, builders, etc.) as the administrative obstacles (Town Hall and IGESPAR) can be difficult to negotiate and should be assessed in advance to avoid any disappointment.

Investment and Short-Term Rental Management in Lisbon

Is rental a good investment in Lisbon?

There is currently a high demand from newcomersretired or active expats who wish to rent quality properties in Lisbon. The rental market is also very dynamic.

Returns are currently very good in Portugal. For property in consolidated areas and therefore risk-free, returns vary between 4 % and 7 % gross.

Buy a second home in a city full of charm, a top tourist destination, a booming European capital, at unbeatable prices!

TAGUS PROPERTY helps you find the ideal property to maximize the performance of your investment.

Discover our file: why invest in Portugal?

Now that I have bought my apartment, what about rental management?

TAGUS PROPERTY works with property management companies in Lisbon.

Recoup your investment over the year by renting it short term during your absence with 85% fill rates and 10% annual return (average achieved by our local partner).

Our short-term rental management partners manages your guests and your reservations and increases your returns.

Rent your apartment on airbnb and increase your property yields.

Proposed short-term management services before and during rental:

You give your keys, they do the rest.

Analysis of Lisbon by district

Reasons to invest in Lisbon

Lisbon, capital of Portugal, born on the banks of the Tagus estuary, is built in archipelagos-like districts on its seven hills. Each district is very individual and has its own architectural identity and culture. The city of Fado and Saudade retains real and distinct district lives, some peaceful, some active, historical, popular, chic or trendy. As Lisbon is currently being renovated, many districts are changing and offer real opportunities. Are you going to live in Portugal, more particularly in Lisbon and do not know which district to choose?

Real estate market conditions in Lisbon. Prices per m2 in Lisbon are still very reasonable, sometimes very attractive, compared with other European capitals.

According to the SIR (Sistema de Informação Residencial da Confidencial Imobiliário), the classification of the most expensive districts (freguesias) of Lisbon in 2018 is:

1. District of Santo António which includes among other Amoreiras, Rua Castilho or the Avenida da Liberdade. A 150 m² luxury apartment here costs over a million euros, a mid-range apartment around 580,000 euros. 

2. freguesia da Misericordia (where you will find Chiado and Estrela)

3. The Avenidas Novas, where the square metre price for a mid-range property reaches €3,588 /m² and €6,800/m² on average for the top of the range.

4. Santa Maria Maior district (Sé, Castelo, among others). This is a new entry thanks to the renovation dynamic in these areas in the last 3 years,

5. Parque das Nações was up to 2 years ago one of the most expensive areas in the city. It has now been replaced by the historic districts.

Please find below a more detailed analysis of the purchase price per square metre per district for new or totally renovated properties in the Region of Lisbon.


Do you need advice on where to invest in Lisbon?

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Portugal had the highest rate of positive investment intentions across europe.

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