The Prime Lisbon Property Market

The Prime Lisbon Property Market

Prominent real estate professionals have conveyed a sense of guarded optimism regarding the condition of the Lisbon property market in 2023 and beyond. This optimism is underpinned by the robust performance of the prime and super-prime sector within the city, even amid a backdrop of reduced demand and diminished transaction volumes. While the overall landscape in Lisbon is experiencing some challenges this year, the transaction values at the upper echelon of the market have remained steadfast. There is an enduring demand for ultra-high-net-worth (UHNW) residences, a more resilient than expected Portuguese buyer and other professionals relocating to Lisbon.

At the uppermost tier, UHNWs from across the globe continue to display a keen interest in Lisbon's real estate offerings, drawn by the city's perceived stability. An increase in activity from the United States, a growing trend for quite sometime. Additionally, the Middle East and Latin America continues to exert a substantial presence. The appeal of Lisbon extends beyond its property market, as super-wealthy clients place trust in the nation's esteemed educational and health institutions, the quality-of-life factors, and beneficial fiscal and immigration visas.  This trust contributes to Lisbon's allure for those who have a strong appetite for prime properties in the city or vicinity.

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While there is an observable demand for high-end properties in Lisbon, especially when they are priced appropriately, the property development pipeline in the city remains relatively slender. It is not uncommon for off-plan projects in central Lisbon to sell out long before completion. A shortage of supply looms over the Lisbon property market due to the limited development pipeline. Most real estate professionals anticipate that meaningful improvements in supply are not expected until 2026 or 2027, creating a persistent under-supply situation that is likely to bolster property prices further.

Planning restrictions in certain districts of Lisbon, including Chiado, Lapa, and other in demand areas, further constrain the availability of prime properties. These restrictions are not only necessary to preserve the authenticity of some ofLisbon’s most emblematic neighbourhoods but also limit the scale of project that can be brought to market. Basically, approvals not only take a significant amount of time but also projects of scale are few and far between.

UHNWs often display a willingness to pay premiums for what they perceive as genuine trophy properties within the Lisbon property market. This inclination toward long-term ownership is increasingly prevalent, with clients recognizing the scarcity of such assets. The prospect of these properties returning to the market may be several decades away. International UHNWs, particularly those seeking Lisbon properties for family use, tend to express interest in purchasing properties closer to completion, in contrast, domestic high-net-worth individuals often exhibit enthusiasm for renovation and refurbishment projects, a testament to their desire for personalisation. Many buyers seek a ‘safe-landing’ option as they determine the ‘lay-of-the-land’ before committing to a long term residence. Unsurprisingly, branded residences continue to be a favoured option among foreign buyers, offering a "lock-up-and-go" lifestyle with extensive services.

Properties that blend heritage and modernity are indeed the most sought after and in lowest supply. However, it is in this space that Maia International Properties flourishes. Being a fully independent boutique agency, we are not limited to a specific portfolio of properties but can rather commit time into searching for what our clients truly want. We help clients find unique opportunities with solid returns. We are an advisory firm, and aim to aid buyers through the process of moving to Portugal - accompanying you and helping navigate local bureaucracies.

Always done with care, attention to detail, charm and authenticity.

Let us be your guide in Portugal. 

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