Lisbon's Luxury Real Estate Soars: Prime Property Values Jump 2.4% in First Half of 2025

Global Prime Residential Markets Show Resilience

According to the latest "World Cities Prime Residential Index" report by Savills, prime residential markets worldwide continue to demonstrate resilience amid economic and geopolitical uncertainty. In the first half of 2025, rental growth outpaced property value increases.

Key Findings on Property Values

The report highlights that while the average value of prime properties rose by 0.7% across the 30 monitored cities, prime residential rents grew by 2%. This reflects a growing preference among investors for income-generating assets and shifts in tenant behavior due to high market volatility.

Tokyo leads the appreciation index with an 8.8% increase in prime property values, driven by chronic supply shortages and resilient demand from both domestic and international buyers. Forecasts predict continued growth of 6% to 7.9% in the second half of the year.

Other cities like Berlin, Dubai, and Seoul saw increases exceeding 5%, attributed to limited projects and strong demand. Lifestyle-oriented markets, including Amsterdam, Cape Town, Lisbon, and Sydney, also experienced appreciation, supported by low stock levels and sustained international interest. This steady demand is expected to keep driving prices upward.

"Despite a slowdown from the 2.2% growth in 2024, property values remain positive, with 60% of cities recording gains in the first half of 2025," commented Kelcie Sellers, Associate Director at Savills World Research.

Insights on Lisbon's Market

Rita Bueri, Head of Residential Lisboa at Savills Portugal, stated: "Lisboa mantém-se como um dos mercados residenciais prime mais atractivos da Europa, combinando qualidade de vida, segurança e um estilo de vida único que continua a seduzir compradores nacionais e internacionais. A forte procura, aliada à escassez de produto neste segmento, tem sustentado a valorização dos preços, que agora evoluem de forma mais equilibrada após os aumentos muito expressivos dos últimos anos. Este ajustamento é saudável e contribui para a maturidade do mercado. Acreditamos que a procura por imóveis prime em Lisboa se manterá robusta, alimentada por compradores cada vez mais exigentes e por um interesse internacional que coloca a cidade no radar dos destinos de referência a nível global."

Savills forecasts an average growth of 1.7% in prime property values for the second half of 2025, with Cape Town, Seoul, Tokyo, and Singapore leading the predictions, with estimated increases between 6% and 7.9%.

Luxury Residential Rents Also on the Rise

Prime residential rents increased in most markets analyzed, showing even greater resilience, with 23 out of 30 cities in the index recording rises in the first half of 2025, indicating consistent global demand in key destinations.

Tokyo stands out again, with rents growing by 7.8% in the first six months of the year and 13.5% annually, fueled by limited supply and high demand. Cape Town saw a strong increase of 6.5%, benefiting from a shortage of rental properties and market stability post the 2024 elections.

In Europe, although rental growth is more moderate, the trend is upward. The highest increases were observed in Berlin (6.3%), Amsterdam (2.6%), Rome (1.4%), and Lisbon (1.3%). In contrast, most Chinese cities experienced slight declines in rents due to weak demand and high supply, with variations from -0.2% in Beijing to -1.8% in Guangzhou.

"For the remainder of 2025, we anticipate an average rental growth of around 1% in the cities we monitor, reflecting a global sentiment of cautious positivity," concluded Kelcie Sellers.