Lisbon is solidifying its status as a premium European real estate destination, with a promising market forecast. Engel & Völkers predicts significant shifts in Lisbon’s property landscape come 2025, fueled by evolving buyer preferences, a surge in demand for eco-friendly homes, and the influence of fresh economic forces.
The luxury real estate firm pinpoints three pivotal trends poised to redefine Lisbon’s real estate sector in 2025: personalization, high-end properties, and the expansion of suburban areas.
“Lisbon will continue to be a magnet for both national and international buyers, offering a blend of innovation, sophistication, and a high quality of life. The rise of digitalization, the luxury market’s growth, and expansion into surrounding areas position Lisbon as a leading European real estate market in 2025, adapting dynamically to new demands,” shares Daniela Rebouta, Sales Director at Engel & Völkers for Lisbon, Oeiras, and Setúbal.
1. Enhanced Digitalization and Bespoke Experiences
Technology’s deeper integration into real estate is set to elevate the customer experience in Lisbon’s market. Digital advancements like virtual tours, user-friendly platforms, and AI will make property transactions quicker and more accessible. This evolution promises a more efficient, personalized, and convenient experience for buyers and sellers, catering to individual needs.
2. Booming Luxury Sector
Lisbon is securing its place as a top European capital in the luxury property market. The city’s appeal lies in its refined atmosphere, superior lifestyle, and strong investment opportunities, ensuring steady demand across diverse neighborhoods.
Knight Frank’s “2025 European Prime Price Forecast” places Lisbon in the top 10 for luxury residential price growth, projecting a 4.5% increase. This surpasses growth in cities like Monaco, Milan, Geneva, and Paris. Lisbon is also attracting a new wave of investors drawn to its unique culture, coastal proximity, safety, exceptional cuisine, and strong infrastructure.
3. Expanding Infrastructure and Suburban Growth
Infrastructure investments, including improved rail and road networks, are increasing accessibility to Lisbon’s outlying areas. Cities such as Setúbal, Aveiro, and Évora are emerging as attractive investment destinations, offering lower initial costs and substantial growth possibilities. These areas are attracting investors seeking alternatives beyond the traditional heart of the city.
