Lisbon Tops European Relocation Preferences for High-Net-Worth Individuals
A new report from Quintela + Penalva | Knight Frank has identified Lisbon as the most popular European city for high-net-worth individuals (HNWIs) considering a move. The study, titled the 'European Lifestyle Report,' indicates a broader trend of wealthy individuals and families targeting urban centers for relocation, with the Portuguese capital leading ahead of London and Madrid. Dublin and Barcelona completed the top five city destinations.
The report's findings are based on a survey of over 700 HNWIs from 11 countries, representing more than 30 nationalities. A key insight from the data is a generational preference, with younger HNWIs still favoring London, while the 'Gen Z/Boomers' cohort shows a strong preference for Lisbon. This interest is materializing in property transactions, with citizens from Brazil, the United Kingdom, and the United States being the most prominent nationalities choosing Lisbon over other European hubs.
When analyzing actual property purchases, the data shows that Brazilian, French, and North American buyers are the most active in the market, ranking as the top three nationalities for completed transactions. The primary motivations driving these relocations are reported to be business opportunities and the search for financial stability, which are complemented by Portugal's available tax incentives. Other significant factors include the country's political and social stability, a desirable lifestyle for retirement, and the quality of its healthcare system.
The report also highlights a shift in priorities among the wealthy. Last year, tax benefits were a less decisive factor, ranking behind security, privacy, and employment opportunities. The current findings suggest a renewed focus on urban living, a contrast to the pandemic-era preference for coastal resorts and secluded alpine retreats. In the non-city category, Chamonix was the leading destination, with Portugal's Algarve region ranking fourth.
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The survey also shed light on property preferences, with nearly half of the respondents indicating a preference for purchasing a house or a villa over other property types. Apartments and penthouses were the second choice, followed by rural estates. This indicates a strong demand for spacious, private residential properties within or near urban environments.
Kate Everett-Allen, Head of Europe Residential Research at Knight Frank, stated that the current mobility of the wealthy reflects a significant change in the global wealth landscape. "The wealthy have always had options, but never have they exercised them with such urgency and volume," she commented. "What we are witnessing is more than just a demographic shift. It is a reflection of a fundamental reshaping of the global wealth landscape – impelled by geopolitical frictions, a recalibration of tax regimes, and a new era of greater mobility."
The report confirms that the global number of HNWIs relocating to other countries is projected to exceed six digits this year, with cities like Lisbon positioned as prime beneficiaries of this trend. The combination of economic, lifestyle, and stability factors continues to make the Portuguese capital a leading choice for the world's mobile elite.
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