Lisbon’s luxury property market continues its upward trajectory, with values rising 2.4% during the first half of 2025 according to the Savills World Cities Prime Residential Index. This growth significantly outpaces the global average of just 0.7% across the 30 cities tracked by Savills, cementing the Portuguese capital’s position as one of Europe’s most dynamic luxury property markets.
Data from July 2025 shows the average price for a home in Lisbon has reached over €6,100 per m² in most central neighborhoods, while the broader Lisbon metropolitan area averages around €5,829 per m². The sustained rise reflects strong and continued interest from international buyers, a key factor driving prices higher in the city.
Lisbon Luxury Neighborhoods: Top Investment Areas 2025
Established central luxury neighborhoods remain the dominant hotspots for high-end property investment. Avenida da Liberdade, Lapa, Chiado, and Príncipe Real consistently attract buyers due to their premium locations, historic charm, and high concentration of luxury amenities.
“The luxury market in Lisbon is maturing rather than simply growing,” explains Cristina Pereira, founder of Residential Advisory Portugal. “International buyers are becoming more sophisticated, focusing on properties in historic central districts where scarcity and authenticity drive long-term value rather than chasing new developments on the periphery.”
After rapid expansion in 2023 and 2024, Lisbon’s property market is showing signs of stabilization. Forecasts for 2025 suggest overall property market growth between 4% and 6%, influenced by slowing economic growth and more selective buyers. A significant real estate project approved by Lisbon City Council, set to introduce around 2,000 new homes, may help ease supply-demand tensions.
Portugal Luxury Property Market: National and Global Context
Lisbon’s performance stands out not only in sales but also in rental markets, with some of the fastest-rising luxury rental prices globally. On a national level, Lisbon’s growth drives the trend of rising luxury house prices throughout Portugal, with the market expected to maintain solid performance throughout 2025.
Portugal’s economic growth continues to outpace the European Union average, attracting substantial foreign investment. International buyers account for a significant portion of property transactions, with the sustained influx of foreign capital remaining the primary driver behind rising housing costs in the Portuguese capital.
The combination of limited supply in prime central locations, strong international demand, and Portugal’s economic stability positions Lisbon as an increasingly important player in the European luxury property landscape.
Interested in Lisbon’s luxury property market? Our team provides expert analysis of prime neighborhoods and investment opportunities in Portugal’s capital. Contact Residential Advisory Portugal for comprehensive guidance on Lisbon’s evolving luxury property market.