Lisbon to See Hotel Dominance While Porto Expands Housing by 2029
The real estate market's evolution until 2029 will highlight a clear divergence between Porto and Lisbon concerning the construction of housing versus hotels. A study by the consulting firm Neoturis, commissioned by Airbnb, concludes that by 2029, the capital will continue to expand its area for tourist accommodation, while in the 'Invicta' city of Porto, housing construction will gain significant ground. This report comes as both cities confront a historical decline in the production of new residential units.
The Neoturis study demonstrates that in Lisbon, the growth of land area designated for tourist developments is expected to reach 490,990 square meters (m²). This figure is more than double the expansion planned for residential homes, which is projected at 200,648 m². This data points to a continued focus on the tourism sector as a primary driver of new construction in the capital. For detailed analysis on this trend, investors can review our market intelligence and analysis blog.
In Porto, the scenario is inverted. The area dedicated to traditional housing is forecasted to grow by 464,675 m², substantially more than the 197,420 m² allocated for tourist-related projects. This suggests a strategic pivot towards addressing residential demand in the northern city. This trend could present different opportunities for developers and homebuyers compared to the capital. Those interested in new construction should be aware of the risks associated with new builds.
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A critical finding of the report is that both metropolitan areas are facing a significant drop in the creation of new homes, a structural issue that has contributed to market pressures. The divergent strategies in construction—Lisbon focusing on tourism and Porto on housing—will likely shape the investment landscape in each city for the remainder of the decade. For those looking to invest, connecting with agents specializing in investment properties will be key to navigating these distinct market dynamics.
Stay informed on Lisbon property market developments at realestate-lisbon.com.