Why Lisbon’s Condo Market is Booming – Top Reasons to Invest
Lisbon has always been a popular tourist destination, but it has recently become a hotspot for real estate investors as well. The city’s condo market is booming, with developers and buyers alike flocking to the Portuguese capital. With its stunning architecture, vibrant culture, and growing economy, Lisbon offers a unique opportunity for those looking to invest in real estate. In this article, we’ll explore the top reasons why Lisbon’s condo market is booming and why it’s a smart choice for investors looking to diversify their portfolio. From the city’s affordable prices to its strong rental market and favorable tax laws, there are plenty of reasons to consider investing in Lisbon’s real estate market. So, let’s dive into the top reasons why Lisbon’s condo market is a must-see for real estate investors.
The current state of Lisbon’s condo market
The Lisbon condo market is experiencing a period of growth, with high demand from both locals and foreigners. According to a recent report by the Portuguese Real Estate Professionals Association (APEMIP), property sales in Lisbon increased by 10% in 2019 compared to the previous year. The same report also indicates that the average price per square meter increased by 8.9% in the same period.
In addition, the average time it takes to sell a property in Lisbon has decreased, indicating a strong demand for properties in the city. The APEMIP report shows that it now takes an average of just 43 days to sell a property in Lisbon, down from 54 days in 2018.
Reasons for the booming condo market in Lisbon
### High demand for properties in Lisbon
One of the main reasons why the condo market in Lisbon is booming is the high demand for properties in the city. Lisbon is one of the most attractive cities in Europe, with its beautiful architecture, rich culture, and lively atmosphere. It is also a relatively affordable city compared to other European capitals.
Many people are drawn to Lisbon because of its quality of life, which is considered to be one of the best in Europe. The city has a mild climate, beautiful beaches, and a rich cultural heritage. Lisbon also has a growing economy, which makes it an attractive location for businesses and entrepreneurs.
### Favorable investment environment in Lisbon
Another reason why the condo market in Lisbon is booming is the favorable investment environment in the city. Portugal has a relatively stable political and economic environment, which makes it an attractive destination for foreign investors.
In addition, the Portuguese government offers a range of incentives to foreign investors, including tax breaks, residency permits, and access to the Golden Visa program. The Golden Visa program is a fast-track residency program that offers investors the right to live and work in Portugal, as well as access to the European Union.
Government incentives for investors
The Portuguese government is actively encouraging foreign investment in the country’s real estate market. The government offers a range of incentives to foreign investors, including tax breaks and residency permits.
In addition, the government has introduced a number of measures to make it easier for foreigners to invest in the Portuguese real estate market. For example, the government has reduced the transfer tax on property sales and introduced a scheme to provide tax breaks to foreign investors who buy property in the country.
Lisbon’s growing tourism industry
Lisbon’s growing tourism industry is another reason why the condo market in the city is booming. In recent years, Lisbon has become one of the most popular tourist destinations in Europe, attracting millions of visitors every year.
This growth in tourism has had a positive impact on the city’s real estate market. Many tourists who visit Lisbon fall in love with the city and decide to invest in property in the city. This has led to an increase in demand for properties, which has driven up prices and created new investment opportunities.
Lisbon’s cultural and historical significance
Lisbon’s cultural and historical significance is another reason why the city is an attractive destination for real estate investment. The city is rich in history and culture, with its beautiful architecture, museums, and art galleries. These factors make the capital of Portugal one of the best places to live in Portugal, specially for expats.
Lisbon is also home to many festivals and events throughout the year, which attract visitors from all over the world. These events create a vibrant and lively atmosphere in the city, which adds to its appeal as a real estate investment destination.
Top neighborhoods for condo investment in Lisbon
There are many neighborhoods in Lisbon that are attractive for real estate investment. Some of the most popular neighborhoods include:
1 – Baixa
Baixa is the historic center of Lisbon and is one of the most attractive neighborhoods for real estate investment. The area is characterized by its beautiful architecture, historic buildings, and narrow streets. Baixa is also home to many shops, restaurants, and cafes, making it a popular destination for both tourists and locals.
2 – Chiado
Chiado is another popular neighborhood for real estate investment in Lisbon. The area is known for its elegant buildings, trendy cafes, and high-end shops. Chiado is also home to many cultural institutions, including theaters, museums, and art galleries.
3 – Avenidas Novas
The Avenidas Novas district is one of Lisbon’s most sought-after areas, known for its central location and its blend of modern development with the charm of historic Portuguese mansions. Planned in the early 20th century, the area was designed as an elegant extension of the city, featuring wide, tree-lined, and mostly flat avenues—a sharp contrast to the hilly and narrow streets of other Lisbon neighborhoods. Avenidas Novas offers the energy of a bustling urban area during the day and the peace of a quiet residential neighborhood at night, setting it apart from livelier areas like Baixa and Chiado.
With top-notch infrastructure, the neighborhood provides excellent schools, hospitals, services, and an extensive public transportation network, making it a strategic choice for families, young professionals, and international investors. The area boasts charming cafés, quality restaurants, and exclusive boutiques, along with cultural landmarks like the Calouste Gulbenkian Foundation and iconic shopping destinations such as El Corte Inglés. For those seeking a unique combination of sophistication, convenience, and quality of life, Avenidas Novas is undoubtedly one of the best places in Lisbon to live or invest. Learn more about Avenidas Novas
4 – Estrela: Charm and Quality of Life in the Heart of Lisbon
The Estrela neighborhood is one of Lisbon’s most elegant and sought-after areas, known for its tranquil, residential atmosphere, beautiful historic buildings, and well-maintained green spaces. Located in a central position, Estrela offers easy access to the city center and is ideal for both families and young professionals seeking a high quality of life. Anchored by the iconic Basílica da Estrela and the enchanting Jardim da Estrela, the neighborhood attracts residents and visitors alike with its classic architecture and tree-lined streets.
Estrela is also renowned for its excellent infrastructure, featuring top-quality schools, clinics, and a wide selection of cafés, restaurants, and traditional shops. The famous Tram 28 passes through the neighborhood, offering an authentic Lisbon experience and convenient transportation to other parts of the city. This neighborhood is a top choice for those who appreciate a sophisticated yet peaceful lifestyle without sacrificing proximity to Lisbon’s vibrant city center. Learn more about Estrela Neighborhood
5 – Parque das Nações
Parque das Nações is a modern and vibrant neighborhood in Lisbon, located in the east of the city. The neighborhood was built to host the 1998 World Expo and was planned to be a cultural, business and leisure center. Since then, the neighborhood has grown and developed, becoming a popular destination for locals and tourists alike. Learn more about Parque das Nações
Interested in buying real estate in Lisbon Portugal?
Lisbon’s condo market is booming, and there are plenty of reasons why it’s a smart choice for real estate investors. From the city’s affordable prices to its strong rental market and favorable tax laws, there are many factors that make Lisbon an attractive destination for investment.
In addition, the city’s rich culture, historic significance, and growing tourism industry make it a unique and vibrant location for real estate investment. With its beautiful architecture, mild climate, and high quality of life, Lisbon is a city that is sure to attract investors for years to come.
CAP International is a full service brokerage firm in Portugal. If you are interested in buying real estate in Lisbon or any other place in Portugal, please get in touch today: +351 91 252 9806 (also WhatsApp).