Whether you’re searching for ways to expand your horizons in real estate investments, are planning to relocate to Portugal, or are interested in having a vacation house there, Lisbon is the hottest European Capital to fulfill your dreams and wishes.
If with colorful architectural style, vibrant and dynamic culture, and delicious Portuguese pastries, Lisbon caught your eye, and you see the city’s full potential, that’s an article for you! Find out what makes the capital of Portugal so attractive to young entrepreneurs, what neighborhood to choose, and how much one should expect to pay for Lisbon real estate.
Why does Lisbon attract newcomers and real estate investors?
You probably noticed that when you put “property for sale Portugal” in the Google search, you get redirected to the Lisbon real estate agencies. And there is a reason why more and more foreigners choose to live in the capital than in Porto, Cascais, Amadora or others. Being the capital of the country, Lisbon gives endless opportunities to young professionals. With welcoming governmental policies towards business, many European companies relocate their headquarters to Lisbon, reaching the city’s economy. Affordable prices on accommodation, food, entertainment, an all-year-long warm climate, an easy commute to many historical castles, and sunny beaches make Lisbon a dream city for living or spending vacation. As more tourists put Lisbon on their must-do list, the real estate investors are bound to be successful here as well.
Outlook of Lisbon neighborhoods
The key to successful investment is choosing a safe and well-suited for your lifestyle district which won’t lose its worth in the future.
Baixa/Chiado. Known as the heart of Lisbon, the downtown area is full of boutiques, restaurants with Portuguese food, pedestrian streets, and many historical monuments and sights. This area is popular among tourists, making the property grow in value each year. On average, you should expect to pay €6,145/sqm. Baixa is a great investment market for short- and long-term rentals, yet if you’re buying an apartment for personal use, it’s better to choose a more affordable and authentic neighborhood.
Avenidas Novas. Those who dream of spacious, luxury apartments in the art-nouveau buildings should check what Avenidas Novas has to offer. The upscale neighborhood with gorgeous parks, castles, and luxury shopping stores has quite fair prices on the real estate with an average of €6,046/sqm.
Lapa/ Santos. The upcoming neighborhood is slightly far from the noisy tourists, yet perfect for those who want to immerse in the history and culture of Lisbon. The average price of €5,670/sqm attract many young professionals and singles, making the area attractive to entrepreneurs.
Bairro Alto. The district brings everyone on the streets to party their problems away. Full of bars, nightclubs, and boutique hotels Bairro Alto, comes alive every night. The location on the hills makes the views from the apartments stunning and definitely improves the rental business. The average price for a square meter there is €6,825, yet the rent prices sky-rocket every touristy season, which is quite long in Portugal due to the warm climate.
Alfama/Graça. With narrow streets, yellow tram lines, and authentic 17th buildings, Alfama and Graçaare quintessential Portuguese neighborhoods. The prices for real estate recently went slightly down to €6,145/sqm in Alfama and €4,514/sqm in Graça, entering the market for vacation homes. There won’t be a better place for you to feel more in Portugal than in those historical places, as that’s where Lisbon started.
Intendente/Mouraria. Not far from the city center, you have two multicultural and hippy neighborhoods with many constructions in sight, becoming the next hottest spots for investment. Expect to pay around €4,760/sqm in Intendente and around €6,145/sqm in Mouraria. Low prices and good transport connection makes Mouraria and Intendente attractive districts among students, ex-pats, and tourists.
Parque de Nações. Alongside the coast, you can find the modern Parque de Nações with many business centers and conference halls. The business district is highly-popular among ex-pats that work there. The affordable sale price of €5,965 per square meter and high rental make that non-Portuguese district of Lisbon attractive to investors.
Campo de Ourique. The much quieter neighborhood of Campo de Ourique has everything you need for a comfortable life or stay. With family-orientated values and a slow-living lifestyle, it’s a perfect place for a stable long-term rental investment. The price tag is much lower than in the center, at €5,561 per square meter.
Ajuda/Belém/Restelo. Three little neighborhoods offer many historical monuments and museums. Even though it’s quite a long way from downtown, the areas are well-connected by public transportation and are still smash-hit among tourists. Whether you seek a vacation home or a short-term rental, it’s a welcoming market for both, with prices starting from €3,989/sqm and up to €5,985/sqm.
Benefits you can get in Portugal as a foreign investor.
Portuguese government makes a lot of wise steps on the way to improving the country’s economy by encouraging young entrepreneurs and investors. Many EU residents relocate to Lisbon as the economic climate benefits their financial growth. Yet there are some perks for Non-EU investors. The Non-Habitual Resident (NHR) fiscal incentive program, combined with the low cost of living in Lisbon, creates fruitful soil for startups and businesses.
Another perk for those who wish to get European Citizenship is that real estate investment fast-forwards your opportunity to obtain a Golden Visa in Portugal. That long-term investor visa allows you to enjoy all benefits of the EU, such as free healthcare and education, and bring you one step closed to progressing to citizenship.
The last piece of advice
Home-shopping in a foreign country comes with unexpected challenges, as you might face unfamiliar regulations, laws, and customs. To make the process stress-free take your time to find a local real estate agent that can navigate you through the market. Remember to check the realtor’s experience in your preferred neighborhood and the budget frame, to be one step closer to the dream apartment in Lisbon.