Lisbon Property Prices Outpace Milan and Madrid, Report Confirms
For foreign investors weighing their options in Southern Europe, a new report confirms Lisbon's position as the most expensive capital for buying a home, with prices now exceeding those in Madrid, Milan, and Rome. The data highlights the strength and premium status of Portugal's real estate market, providing a key benchmark for investment decisions.
In June, the median price for a property in Lisbon hit a new record of €5,769 per square meter. This compares to €5,642/m² in Madrid and just over €5,000/m² in Milan, solidifying Lisbon's top-tier status. The rental market shows a similar trend, with Lisbon's median rent of €22.2/m² among the highest in the region.
What Foreign Investors Need to KnowThis comparative data is crucial for asset allocation. 'Seeing Lisbon's prices lead the pack in Southern Europe provides confidence in the long-term value of investments here,' notes a wealth management consultant specializing in real estate. 'While the entry point is higher, the market's fundamentals—strong demand and limited supply in prime areas—support sustained appreciation. Portugal's 8% year-on-year price growth is a sign of a healthy, maturing market.' The report also highlights strong performance in tourist areas like Setúbal, which saw a 20% price increase, pointing to high-growth secondary markets near the capital.
Actionable Steps for Today's Buyer- Benchmark Your Investment: Use this data to compare the value proposition of Lisbon against other European capitals. A €1 million investment buys you a different class of asset in Lisbon than it does in Rome or Barcelona.
- Analyze Rental Yields: While purchase prices are high, Lisbon's strong rental market (€22.2/m²) offers attractive returns. Calculate the potential yield to assess the viability of a buy-to-let investment.
- Look at Secondary Growth Zones: The 20% price surge in Setúbal indicates that satellite cities around Lisbon are experiencing rapid growth. These areas can offer a lower entry point with higher potential for capital appreciation.
- Consider Long-Term Stability: Portugal's position as the most expensive market reflects its political and economic stability compared to some of its neighbors. This 'safety premium' is a key factor for risk-averse investors.
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