Luxury real estate: prices will increase by2% in Lisbon by2024

The real estate market in Lisbon has slowed down, but forecasts for 2024 place the Portuguese capital ahead of cities like London and Berlin. According to a study by the real estate agency Knight Frank, prices for luxury housing in the capital are expected to rise by 2% by 2024. Currently, the agency is partnered with the Portuguese company Quintela + Penalva.

Lisbon is ahead of London, Berlin, and Edinburgh.

“Lisbon is positioned in the middle of the forecasts for 2024, ahead of cities like London, Berlin, and Edinburgh. The Portuguese capital is expected to show a growth of 2%, while Berlin and Edinburgh will experience a price decline (from -1% to -3%),” the press release sent to the editorial office states.

Overall, "luxury housing prices are expected to improve in 2024" with an average growth of 2%, excluding Dubai. Auckland and Mumbai are expected to lead the forecast for 2024, as both cities are showing a growth of 5% over the 12-month period.

The growth of the luxury real estate market in Portugal

“After the growth of the luxury real estate market in Portugal, which filled a significant gap in supply, it is expected that this growth will be consolidated, similar to what is happening in major European markets. However, our country has the potential for expansion,” explains Francisco Quintela, co-founder of Quintela + Penalva.

It is also expected that Madrid (4%), Paris (3%), and Dublin (2.5%) will be the cities with the best performance due to a lack of supply in the luxury sector and the "relative economic resilience of the respective countries."

“The rise in inflation and the corresponding increase in interest rates were the main topics of the first half of 2023. However, the major markets managed to withstand this pressure, but even here, sales volumes, rather than prices, have become the main casualty so far. The luxury housing market is more resilient to changes in monetary policy due to greater liquidity and cash purchases, although these investors are not immune to the consequences of recent monetary policies,” assures Kate Everett-Allen, author of the latest Knight Frank forecast.