Lisbon Named a “Solid” Luxury Real Estate Market in Global Index
A recent market research announcement has identified Lisbon as a solid destination for luxury real estate investment, placing it alongside major global cities like Los Angeles and Geneva. The findings come from the Prime Global Cities Index, a quarterly report published by Knight Frank that analyzes prime residential price performance across 46 international markets.
The source of the data is Knight Frank's global research network, and the methodology involves tracking the nominal price growth of the top 5% of the housing market in each city. This provides a standardized benchmark for comparing luxury property performance worldwide. The report covers the 12-month period ending in June 2025.
The specific numerical findings for Lisbon show a year-over-year price appreciation of 3.1%. This growth rate placed the Portuguese capital in 21st position in the global ranking. This performance is notably stable when compared to other solid markets such as Berlin, which saw 3.2% growth, and Los Angeles, with 3.9% growth.
The geographic breakdown of the index highlights a global average price increase of 2.3%. Seoul was the top performer with an exceptional 25.2% growth, while other strong markets included Tokyo (16.3%) and Dubai (15.8%). Within Europe, Madrid (+6.4%) and Zurich (+5.4%) also demonstrated robust growth, indicating varied performance across the continent.
The time period comparisons show that while more than 75% of cities recorded positive annual growth, the overall pace has moderated since the end of 2023. This slight slowdown is attributed to the current global interest rate environment. The market segment analysis focuses exclusively on the prime, or luxury, tier of the residential market.
Industry expert commentary within the report, provided by Liam Bailey, Knight Frank's Global Head of Research, suggests that the market is in a phase of adjustment. “The recent recovery was sustained by the expetativa of lower financing costs, but with that horizon postponed, a cooling in price growth is inevitable,” Bailey commented. Francisco Quintela of Quintela + Penalva | Knight Frank added that Lisbon's resilience is supported by “sustained international interest and limited supply in premium locations.”
The government or regulatory body response to these market trends is indirect but relates to monetary policy. The report concludes that the future direction of luxury property prices globally is closely tied to the interest rate decisions of central banks. A continued high-rate environment is expected to act as a brake on more accelerated growth. Future reports will continue to monitor these macroeconomic factors.
Stay informed on Lisbon property market developments at realestate-lisbon.com.
