usatoday24
Lisbon is the mecca of the cream cakesfado, sardines and tiles, but if we talk about real estate market it is undoubtedly the city of change. Little (or nothing) has to do with today’s Lisbon with that of two decades ago, the prior to the financial crisis. The Portuguese capital has managed to sneak into the international investment map and establish itself as Tourist destinationbut it hasn’t left him for free. On the way it has become the city More “uninquerable” from Europe, with a real estate market more focused on Expats or tourists than in their neighbors.
The former buy houses to use them as second residences Or in search of high profitability while the latter, the Lisbon, have seen how housing became so careful that many have renounced the perspective of renting whole floors and are content with rooms.
Lisbon, “Insequible” city. The Lisbon real estate market fit several adjectives: it is dynamic, attractive For investors and with upward valuesbut there is another peculiarity in which it stands out about the rest of European metropolis: the Insequibility. According to Numbeopresents the ‘worst’ relationship between the average price of housing and available family income. At least from the perspective of the native population interested in buying a house.
The platform assigns to the Portuguese capital An index of 21.1, above other large (and faces) European metropolis, such as London(18,6), Paris (16,9), Munich (15), Vienna(14,9) o Barcelona(12.5). Madrid occupies for example the 53rd position of The tablewith a result of 11.6 points.
Prices and income. It is not so much that housing is More expensive in Lisbon that in those other cities as of their relationship with income in a country where minimum wage It is maintained low (despite Your progressive ascent) and the half -gross salary was around 2024 1,600 euros/ month. “In a country where 60% of taxpayers earn less than 1,000 euros per month, finding a rent below that price in the capital is only possible if you are willing to live in 20 m2 or less,” warns Agustín Cocola-Gantresearcher at the University of Lisbon, in a tribune of The Guardianin which it analyzes the challenges of the city.
A percentage: 176%. Number data is not the only ones that reflect the change that the Lisbon real estate market has experienced during the last decade. Some calculations show that housing was more than 176% in a matter of a decade, between 2014 and 2024, a percentage that would be even more pronounced in the historic center. According to idealistIn 2015 the M2 in the sale market cost 2,206 euros. Today it would exceed 5,700. In the case of rent it passed From € 8.4/m2 to € 22.4/m2 During the same period.
And the forecasts managed by the sector show that these values will continue to climb. “It is expected that housing prices both in Lisbon and Porto will continue to grow in 2025, supported by an ongoing recovery after the previous market corrections,” Comment The Savills. “The market remains stable, with a constant growth that signs it a positive perspective for next year.” Although the Lisbon case is especially interesting, the price increase It expands to the whole of Portugal.
Looking back. At this point the question is obvious … why is that increasing? How has Lisbon became the most unassumable city in terms of housing price? For cocola-grant The key is in the years after the financial crisis of 2008, when Portugal adopted a shock plan that, among other objectives, set out to make Lisbon a more appetizing destination for tourists and real estate investment.
The formula to achieve this had little novelty, remember The expert of the University of Lisbon. The government flexible the rental market, turned to fiscal policy to attract investment funds and applied incentives to capture buyers who do not reside in Portugal, a formula that It has also been tested In Spain. In 2012, the country deployed its Golden Visa program in Portugal, which allowed him to accumulate an investment of thousands of millions of euros.
Between tourists, nomads and Expats. The country not only set out to capture real estate investment. Another of its objectives was to claim as a destination to Digital nomadsstudents and travelers and tourists, both those interested in staying in hotels and in apartments through temporary rentals. The result was that thousands of homes The city began to be announced on Airbnb, displacing traditional tenants and Tensioning The market.
The digital Mesagem of Lisbon remember that only between 2014 and 2018 the local accommodation (the short -term rentals) grew at a 100% annual rate in Lisbon, especially in certain areas, such as Mercy either Santa Maria Maior.
“Dramatic levels”. Cocola-Gant Point out that in the Historic Center of Lisbon the airbnb rents have risen to “dramatic levels” and in the most tourist neighborhoods about 70% of the homes have a short -term rental license, a density that would exceed that of others cities hyperturistifiedsuch as London or Barcelona. Not just that. The hotel offer has shot, tripling since 2010 and with dozen new projects on the horizon.
Hi, Gentrification. The researcher at the University of Lisbon Explain That, given the low interest rates and given the fiscal advantages offered by Portugal, investors were interested in Lisboeta real estate park. After all, the country offered them good conditions and houses that were revalued over time and were well received in the rental market. That investment allowed rehabilitating real estate, but had its ‘face B’: a Gentrification Until then almost unknown in much of the city.
“Despite the improvements, the city center lost 25% of its population between 2011 and 2021”, Precise. According to their calculations, only 56.5% of the homes that were built or reformed throughout those years ended up becoming main residences. In other words: a good part of that work that allowed to rehabilitate the city resulted in homes that are empty today, are dedicated to temporary rental or are used as second residences.
Lisbon for Lisbon? “The result is a city that hosts foreign wealth, but excludes many of its own citizens, prioritizing the wishes of global consumers on the needs of local communities,” duck The researcher. A quick search arrives in the newspaper library to verify that not all Lisbon looks at that accelerated change.
In recent years there have been citizen campaigns for Reduce rentals holidays, discomfort samples for the influx of digital nomads or protests to demand greater access to housing, something that We have seen Also in cities in Spain with tensioning real estate markets. They have even risen Complaints of residents tired that the emblematic yellow trams of Lisbon have stopped serving the Lisbon to become very different: a “toy” for visitors.
Images | Jorge Fraganillo (Flickr) and Aayush Gupta (UNSPLASH)
In Xataka | If the question is “a country can hold only with renewable energy”, the answer is here next: Portugal
GIPHY App Key not set. Please check settings