Lisbon's Housing Crisis: Only 1% of Homes for Sale are Under €250,000, says Century 21

Lisbon Investment Insight: Scarcity Drives Value as Only 1% of Homes Fall Below €250k

A stunning new statistic from Century 21's CEO, Ricardo Sousa, reveals the intense scarcity driving Lisbon's property market: only 1% of available homes are listed for under €250,000. For foreign investors, this is a double-edged sword, indicating a challenging environment for entry-level investment but underscoring the powerful and sustained value of existing property assets in the capital.

This data point is a clear indicator of a severe supply and demand imbalance. The near-total absence of properties under €250,000 means that the market floor is exceptionally high, which in turn supports property values across all higher price brackets. 'When the entry-level of a market effectively vanishes, it creates upward pressure on everything else,' explains a market analyst. 'For current owners or those able to invest in the mid-to-high tier, this scarcity is a powerful value driver. It signals that Lisbon property is a fundamentally scarce and therefore valuable asset class.' The report also noted price increases of up to 20% in surrounding areas like Setúbal, showing the ripple effect of Lisbon's heated market.

• Understand the Market Floor: Recognize that the €250,000 mark is virtually non-existent. Investment strategies must be calibrated for a higher entry point.
• Capitalize on Scarcity: If you own property in Lisbon, this data confirms the strength of your asset. If you are buying, you are entering a market where supply is structurally limited, which can protect long-term value.
• Look to Fringe Areas: The 20% price jump in Setúbal shows that the areas immediately surrounding Lisbon are the next frontier for capital growth. Consider investments in the greater Lisbon metropolitan area.
• Focus on Rental Yield: With purchasing being so difficult for locals, the demand for high-quality rental properties remains intense, offering strong and stable yield opportunities for investors.

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