Many people dream of moving to Europe someday. But where should they go? Should they move to London, Paris, Rome, Berlin? Or opt for not so famous, but trending European capitals?
While visiting the Portuguese capital this summer, I had the chance to speak with a local real estate agent, that explained the current status of real estate investment in Lisbon and why it is a popular market right now.
With over 30 years of experience in real estate in Lisbon, this person was provide valuable insight into the current state of the market. As a native Portuguese speaker but also someone that lived temporarily abroad in other European capitals like Madrid, London, Paris or Rome he seem to understand the nuances of the local property market in comparison to other markets.
His extensive knowledge of the Lisbon area allowed me to draw some unique insights into the city’s housing market.
Getting into context
The Portuguese capital has been experiencing a boom in tourism over the last few years. This trend seems to be continuing as more and more tourists are coming to visit the city. But that phenomenon is apparently seen in foreign willing to move to western European capital.
The vibe and current status of the market here, really reminds of the Copenhagen late 2000’s real estate boom, where many foreigners were looking to buy properties there. The same thing happened in Amsterdam, which was also experiencing an increase in tourist numbers at the time.
But why Lisbon right now?
What makes the Portuguese capital so attractive to foreigners? And how can you benefit from the situation
3 Reasons for Lisbon Real Estate Market Seeing a Boom
There are several reasons why the real estate market in Portugal is currently experiencing a boom. First, the country is still recovering from the financial crisis of 2008, and the economy is slowly improving. Second, the government recently passed legislation that allows foreigners to buy property in Portugal. Third,
The Cost of Living
The cost of living in Portugal is relatively low compared to other European countries. And even though that in Lisbon prices are a bit higher than the rest of the country, they are still cheaper than other European capitals.
Variety of residential options
The Portuguese capital offers a wide variety of residential options, whether you’re looking for apartments, townhouses, villas, or even luxury homes. Prices vary depending on the area, but you should always start by checking the market conditions in your preferred neighborhood. From there, you will most likely find any type of property available, including pre-construction developments with builders.
Digital Nomads and Expats
With the rise of digital nomadism, Lisbon is becoming a popular destination for expatriates who are seeking a low cost of living and easy lifestyle.
There are several reasons why Portugal is attracting more and more digital nomads, including the country’s affordable housing market, low taxes, and beautiful weather.
Portugal offers a wide range of accommodation options, from hostels to apartments to villas. Many of these properties are located near the beach, making it easier for travelers to enjoy the warm climate while working remotely.
One of the biggest draws for digital nomads is the city’s affordability. With a combination of cheap rents and a relatively low cost of living, it’s no wonder that so many digital nomads are choosing to relocate here.
While Portugal does offer a number of benefits to digital nomads, there are still challenges associated with living abroad. One of the main drawbacks is the lack of English speaking professionals. While Portuguese speakers are common in tourist areas, finding other English speakers in the surrounding areas of the capital can be difficult.
In addition to language barriers, digital nomads face another challenge when relocating to a foreign country: adapting to a different culture. For example, many digital nomads struggle to adapt to the Portuguese culture due to differences in food, clothing, and customs. However, if you’re willing to put in the effort, you can learn to love the local cuisine, adopt traditional clothing styles, and embrace cultural traditions like traditional dancing or fado music.
Lisbon Real Estate Market – Pros & Cons
Advantages
For those interested in buying property in Lisbon, there are plenty of great reasons to consider moving here. First off, the Portuguese capital offers a relaxed and peaceful existence, which is difficult to find in the more bustling European capitals. This makes it a perfect destination for families looking to raise children in a calm environment.
The locals are welcoming and friendly too, and the cost of things such as groceries, utilities, healthcare, and education is relatively low compared to other major European cities. Plus, in Mercer’s latest Quality of Life Report, Lisbon ranks highly in terms of health care, culture, climate, and infrastructure.
Furthermore, the economy in Lisbon is stable and growing, and the government continues to focus on improving the quality of life for residents. As a result, the country boasts a strong reputation for attracting foreign direct investment, and the local economy is booming.
Disadvantages
Lisbon is a city with many advantages and disadvantages. It has been called the most beautiful city in Europe, but it also has one of the highest crime rates in the world. The city’s location on the Atlantic Ocean makes it an ideal place for tourism, but it can be difficult to get around during the summer months due to high temperatures and humidity. There are many things that make it not so pleasant if you are moving there, specially
– traffic: something quite common to large capitals, but Lisbon has a traffic congestion problem that needs to be solved.
– housing prices: Lisbon real estate prices are skyrocketing right now. You will need to save money before moving there or else you won’t be able to afford a decent home.
– public transport: Lisbon’s public transportation system can be considered in some areas. Most buses don’t run at night, and there are crowded a few trains run from Monday to Friday. If you want to travel outside of the city center, you might need to take taxis or rent a car.
– crime rate: Lisbon is a very safe city, but it does have a higher than average crime rate when compared to other parts of the country. That being said, it’s still way safer than New York City, London, Paris, and Madrid.
Living & Investing In Lisbon Real Estate
Lisbon is one of the most popular destinations for expats around the globe. For many people, it’s a place where they want to live out their retirement years, enjoying a slower pace of life, while still being able to enjoy some of the best attractions the continent has to offer.
If you’re planning on investing in real estate in Lisbon, then you’ll benefit from excellent value for money, because the country is one of the safest places in Europe. With a median price per square meter of around €5,000, you won’t see properties selling for less than half of what they sell for in comparable locations in London, Berlin, Amsterdam, and New York City.
But expect to find that the prices of houses in central Lisbon tend to be much higher than in other parts of the country or the capital surrounding. If you’re thinking about purchasing property in this European capital, then you’ll be able to reap the benefits of good value for money but need to consider your property location.
Wrapping Up
In conclusion, Lisbon real estate market has seen a huge increase in demand over the past year. This is due to several factors including Portugal’s economic recovery and the fact that the country is becoming increasingly attractive to foreign investors. In short, the Portuguese economy is doing really well right now, which means that property prices are going to keep rising. This is especially true in the city center where the average price per square meter keeps rising.
The three main reasons why the Lisbon real estate market is trending right now is because of the cost of living still being attractive, the rise of digital nomadism and the availability in terms of residential options.
But with so many buyers competing for such limited supply, prices are bound to rise. Will it continue like that? No one really knows right now.