Lisbon Prime Property Values Jump 2.4% as Market Outperforms Global Peers
Lisbon's luxury residential market demonstrated significant strength in the first half of 2025, with property values increasing by 2.4%, according to the latest World Cities Prime Residential Index from Savills. This growth rate positions the Portuguese capital as the eighth-fastest appreciating market among 30 global cities surveyed, far exceeding the international average of 0.7%. The data confirms Lisbon's continued appeal to high-net-worth individuals and property investors, even as other global markets show signs of cooling.
The comprehensive report from the global real estate services provider highlights the city's robust fundamentals. The 2.4% rise in capital values during the first six months of the year is projected to accelerate, with Savills forecasting an impressive growth of between 4% and 5.9% for the second half of 2025. This outlook places Lisbon among the most promising markets globally, alongside cities like Cape Town, Seoul, and Tokyo. In Europe, Lisbon's performance was particularly notable, with only three other European cities registering higher growth in prime property values.
Rita Bueri, Head of Residential for Savills in Lisbon, commented on the findings, stating, "Lisbon remains one of the most attractive prime residential markets in Europe, combining quality of life, security, and a unique lifestyle that continues to attract national and international buyers." She noted that the market is transitioning towards a more sustainable growth pattern. "Strong demand, coupled with a scarcity of product in this segment, has sustained price appreciation, which is now evolving more balancedly after the very expressive increases of recent years. This adjustment is healthy and contributes to the maturity of the market," Bueri explained.
The report also analyzed the prime rental market, where Lisbon saw a 1.3% increase in rental values. While this indicates a healthy rental sector, it was outpaced by capital value growth. This contrasts with the overall global trend, where rental growth averaged 2%, suggesting a wider investor pivot towards income-generating assets. Despite this, Lisbon's rental market remains strong within the European context, outperforming cities such as Barcelona, London, and Madrid.
Kelcie Sellers, an Associate Director at Savills World Research, provided a global perspective, noting that despite a general slowdown, property values remain positive, with 60% of the cities in the index recording gains in the first half of the year. The sustained interest in Lisbon from a diverse international client base, combined with a limited supply of new luxury developments, continues to exert upward pressure on prices. The market's performance is a testament to its enduring appeal and solidifies its reputation as a top-tier location for real estate investment.
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