The global luxury housing market continues to grow.

The average price growth in the largest global urban markets increased in the third quarter of 2023. According to idealista news, the global luxury real estate market continues to grow, with average annual prices in 46 surveyed markets analyzed by the Knight Frank Prime Global Cities Index increasing 2.1% in the 12 months to September.

Price growth in Lisbon

The city of Lisbon ranks 13th in the ranking of world cities and third among European cities, behind only Madrid (in 5th position) and Stockholm (in 6th position).

According to the most recent report from the consultancy, which has been a partner of Portuguese company Quintela+Penalva since 2021, 67% of the cities studied showed price increases over the year.

'Average Growth''Prices in the largest global urban markets accelerated in the third quarter of 2023. The average annualized growth rate was 2.1% for the 12-month period through September.

"The recovery in annual prices confirms that global real estate markets are beginning to stabilize, despite a sharp rise in mortgage interest rates," the statement continued.

Till then, while 67% of markets recorded year-over-year price increases, only 63% recorded quarterly price increases, "indicating some uncertainty, mainly due to the possibility of further interest rate hikes".

The current uncertainty over inflation and interest rate risk''continues to influence the real estate market, including the luxury market, which could limit price growth in the medium term.

"In Europe, Lisbon continues to be ranked in the Champions League in the premium market category, not only because of the growing quality of supply, although it remains insufficient compared to demand, but also because of the attractiveness of our country. Recent government measures on housing have created an atmosphere of uncertainty and will certainly cause a cooling of investor interest. However, the real estate market, particularly the premium segment, will remain attractive and will be a safe haven for those looking for our country as a safe destination with unique features in Europe," commented''Francisco Quintela, partner at Quintela+Penalva l Kite Frank.