Breaking Down the Latest Housing Market Trends in Lisbon
Lisbon experiences steepest price surge in eight years
Here's the lowdown on the first quarter of 2025 in Lisbon's real estate scene. The capital city saw a whopping 5.9% increase in house prices, up from the 1% boost recorded in the final quarter of 2024 [2][3]. This marks the highest rise in eight years, surpassing the previous high of 6.1% from the second quarter of 2017 [3].
Curiously enough, this recent surge contrasts the downward trend that was established over the past three years. From an average 1.7% quarterly increase in 2022 to a decline to 1.3% in 2024, Lisbon slowed down on the price increase front [3].
Comparing Numbers From Yesteryears
History tells us that Lisbon's housing market has been booming, with the annual increase peaking at 11.7% by the end of 2021 before the deceleration to 5.5% as of the end of 2024 [3]. The sharp rise in the first quarter of 2025 bumps up the annual growth to 8.6% – a compelling evidence of a rekindled upward trend [3].
Comparison Within the Metropolitan Region
In the Lisbon Metropolitan Area, other municipalities outpaced Lisbon in terms of price increases. For example, Mafra registered the highest year-on-year surge at 22.1% in the first quarter of 2025 [3]. Meanwhile, Lisbon's increase proved to be greater than that of nearby municipalities such as Cascais, Loures, Seixal, and Odivelas [3].
It's interesting to note that, despite Lisbon's price hike, the city's affordability concerns still temper the growth, leading to growing interest in secondary markets beyond Lisbon [5].
All in all, Lisbon's recent price surge seemingly mirrors a broader pattern of robust property market growth in Portugal, with the nation reporting a 15.8% yearly increase in house prices by March 2025 [1].
Investors may find Portugal's finance sector appealing, given the significant 5.9% increase in Lisbon's real-estate prices in the first quarter of 2025, marking the highest rise in eight years [1]. The trend extends beyond Lisbon, with the nation reporting a 15.8% yearly increase in house prices by March 2025, indicating potential opportunities in the broader property market [1].
