Lisbon's Luxury Real Estate Boom
Lisbon is solidifying its status as a prominent destination in the luxury real estate market, securing the 4th position in the ranking of European cities with the highest potential for property appreciation by 2025. According to the ‘2025 European Prime Price Forecast’ report by real estate consultancy Knight Frank, it is anticipated that luxury home prices in the Portuguese capital will increase by 4.5%, surpassing cities like Monaco, Milan, Geneva, and Paris.
Leading the Rankings
At the top of the list are Stockholm, expecting a 6% growth, followed by Marbella and Madrid, both projected at 5%.
Factors Driving Demand
This performance reflects the growing international interest in Lisbon, driven by its political stability, mild climate, safety, and quality of life. Francisco Quintela, co-founder of Quintela e Penalva, a partner of Knight Frank in Portugal since 2021, noted that:
“Portugal will remain on the radar of major foreign investors, not only due to political stability but also because of positive economic growth and the appeal of the national lifestyle combined with rich cultural and historical heritage, quality of life, pleasant climate, and safety.”
Expanding International Connections
Moreover, the development of new air routes, such as those connecting Portugal to the United States, has diversified demand, attracting a significant flow of investors from countries like the United States, United Kingdom, and the Middle East.
Future Projections
Quintela e Penalva also foresees a 5% increase in revenue from the prime segment in Portugal by 2025, with Lisbon and Porto establishing themselves as prime areas. At the same time, the outskirts of these cities may emerge as investment hubs, with projects promising to revitalize entire areas, enhancing the attractiveness of the metropolitan region.
This scenario underscores Lisbon's positive impact on the European luxury market, positioning the city as one of the most dynamic and promising locations for discerning investors and buyers seeking quality and exclusivity.
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