Luxury housing: prices to rise by 2% in Lisbon by 2024

Growth in Lisbon's real estate market has slowed, but forecasts for 2024 put the Portuguese capital ahead of cities such as London and Berlin. Prices for luxury housing in the capital are set to rise by 2% by 2024, according to a study by real estateagency Knight Frank, which has partnered with Portuguese company Quintela + Penalva since 2021.

"Lisbon is in the middle position according to forecasts for 2024, ahead of cities such as London, Berlin and Edinburgh. The Portuguese capital is expected to show an increase of 2%, while Berlin and Edinburgh will have a price drop (between -1% and -3%)," reads the press release sent to editorial boards.

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

"Following the growth of the luxury real estate market in Portugal, which has filled a large niche in the supply, this growth is expected to strengthen, as is the case in the main European markets. However, our country has the potential to expand," explains Francisco Quintela, partner and founder of Quintela + Penalva.

Madrid (4%), Paris (3%) and Dublin (2.5%) are also expected to be the best performing cities due to the lack of supply in the luxury sector and the "relative economic resilience of the countries concerned".

"Rising inflation and subsequent interest rate hikes have been the main theme of the first half of 2023. However, the major markets have borne the brunt, although sales volumes, rather than prices, have been the hardest hit so far. The luxury housing market is more resilient to changes in monetary policy due to greater liquidity and purchases without credit, although these investors are not immune to the effects of recent monetary policies," assures Kate Everett-Allen, author of Knight Frank's latest forecast.