Lisbon
Portugal
A changing market, thriving economy and favourable rules mean that Lisbon is bursting with opportunities. Here, we highlight a few.
Portugal was one of the big economic success stories of the last decade. After years of austerity, a new government created a thriving environment, reduced unemployment and transformed Portugal into a major travel destination. The impact on the property market in places such as Lisbon was electric. Everywhere you look, new properties are springing up. Forecasts are positive and demand is rising.
For this and many other reasons, Lisbon is fast becoming one of the property hotspots of Europe. Here’s what the market has to offer and why now might be an ideal time to get involved.
Tourism
In 2024, Portugal was in the spotlight for winning 19 World Travel Awards, the industry’s most prestigious awards programme. The country welcomed more than 30 million guests and recorded 78.27 million overnight stays in 2024, between January and October. Tourist revenue also surged to €27 billion—a record high. The tourism sector is a key driver of the country’s economic success, accounting for almost 15% of the country’s total GDP.
As Portugal’s thriving capital and the “World’s Leading City Destination”, Lisbon is a particular highlight. Unsurprisingly, it is the most visited city in the country. Lisbon has turned itself into one of Europe’s stellar destinations by embracing top tourism trends and combining its rich heritage with trailblazing innovation.
Living in Lisbon
In addition to business and employment opportunities—an excellent education system and unique quality of life draw more and more families to Lisbon every year. Many multinational companies have established tech hubs in the city, including Google, Microsft, Unilever and Volkswagen, positioning Lisbon as Europe’s Silicon Valley.
With the country’s new Digital Nomad visa, it is now possible for any remote worker to stay in the country. To qualify, you must earn more than four times the Portuguese minimum wage which amounts to around €2,800 per month. You can either stay for a year or apply for residency which will be reviewed after four years.
Our Experts Say...
“Lisbon is often considered one of the most attractive cities to invest in real estate thanks to its economic stability and high quality of life.
For those looking to buy, Lisbon is a diverse investment. Of course, the area makes for a perfect holiday home or retirement destination. Additionally, as Portugal’s humming commercial centre, it is home to a significant number of professionals seeking high-quality, long-term rental accommodation.
With the Silver Coast on its doorstep, the city really offers the best of both worlds. Residents can travel just an hour outside the bustling capital to enjoy tranquil beaches, great surfing conditions, and authentic Portuguese charm.”
– Kevin Martin, Senior Property Consultant
How to get there
By road
Portugal benefits from excellent highways and is well connected across Europe. A journey between Porto and Lisbon takes approximately three hours, while a drive to the Algarve will take around 2.5 hours.
By train
Lisbon is the hub of Portugal’s modestly sized but efficient rail network. Lisbon is easy to reach by train from London, Paris, Madrid and other cities across Europe.
By air
Lisbon Airport is located just 7km northeast of the city centre. Welcoming direct international flights from around the globe, it is the largest airport in Portugal and the 20th largest in Europe in terms of passenger volume.
By boat
Lisbon is the busiest port on the European Atlantic coast. It has three terminals for cruise ships: Alcântara, Rocha de Conde d’Óbidos and Santa Apolónia. Most ships have shuttles from all these ports to Praça do Comércio in the city centre.
Weather
Enjoying a Mediterranean climate, Lisbon tends to have warm and sunny summers, with mild but rainy winters. The city enjoys an average of 2,800 hours of sunshine per year.
Spring/Summer
Spring is generally mild in Lisbon, with good weather becoming fairly stable from April onwards. Summers are warm and sunny, with average high temperatures of around 28.3°. A breeze blows from the Ocean, tempering the warmer days and making the climate extremely pleasant.
Autumn/Winter
From mid-September to November is initially warm and sunny, then it gradually becomes milder, while waves of bad weather become more frequent. The coldest winter month is January, with an average high temperature of 14.8°C (58.6°F) and an average low temperature of 8.3°C (46.9°F).
Why Invest in Lisbon
Lisbon’s popularity as a place to live, work and invest has soared in recent years, fuelled by its rich history, cultural heritage, and breathtaking landscapes. The city has become a hub for innovation and technology, attracting startups and international businesses alike. This economic climate not only increases the demand for commercial properties but also bolsters the residential market, as more professionals seek housing.
Lisbon’s residential sector has seen significant growth, with areas such as Alfama, Baixa, and Chiado becoming prime destinations for investment. For those looking to make long-term returns in the form of capital appreciation, the backdrop of such strong growth is compelling.
Over the past five years, Lisbon rents have risen by almost 30% due to increased demand, and renting in the capital is now more expensive than in Milan, Madrid and Berlin.
Domestic and international tourists are bolstering Lisbon’s economy and driving the demand for short-term rental accommodation. The city has long been a hotspot for travellers thanks to its picturesque neighbourhoods, vibrant cultural scene and world-class cuisine. However, it continues to gain global recognition and popularity as a city break destination, with visitor numbers increasing year on year.
Plans for a new high-speed rail route in Portugal will increase connectivity between Porto and Lisbon by halving the existing journey time to 1 hour and 15 minutes. The project, set to elevate tourism in the country, involves an investment of €4.9 billion by 2030 when the new railway is expected to be completed.
The overall picture is promising. Lisbon’s property market survived the pandemic intact, and new developments are springing up across the region. With more growth to come, Lisbon boasts the potential of a considerable return on investment. Low supply combined with high demand in the capital will continue to push real estate values to new heights.
Our properties in Lisbon
