As Lisbon increasingly positions itself as one of Europe’s preferred destinations for real estate investment, the market outlook is highly promising. According to Engel & Völkers, the Lisbon property market is gearing up for significant transformations in 2025, driven by changes in buyer preferences, growing demand for sustainable properties, and the “impact of new economic dynamics.”
In a statement, the German multinational specialising in luxury real estate mediation identifies three main trends set to shape the sector in Lisbon in 2025: personalisation, luxury, and the development of peripheral areas will be key themes.
“Lisbon will continue to attract both national and international buyers, establishing itself as a city that balances innovation, sophistication, and quality of life. Trends such as digitalisation, the growth of the luxury market, and the development of peripheral areas position the capital’s real estate market as a European benchmark in 2025, dynamically responding to the sector’s new demands and opportunities,” says Daniela Rebouta, Sales Director at Engel & Völkers Lisbon, Oeiras, and Setúbal, quoted in the document.
1. Digitalisation and Personalised Customer Experience
The integration of technology into the real estate sector is set to further redefine the customer experience in Lisbon’s property market. Digitalisation will intensify, with tools like virtual tours, interactive platforms, and artificial intelligence helping to make property transactions even more agile and accessible. This evolution will deliver a more efficient, personalised, and convenient buying and selling experience, tailored to the needs of each client.
2. Rising Luxury Market
Lisbon is cementing its position as one of Europe’s most dynamic capitals in the luxury segment. The city stands out for its ability to balance sophistication, quality of life, and investment opportunities, maintaining strong demand for properties in various areas.
According to the "2025 European Prime Price Forecast" by Knight Frank, Lisbon ranks among the top 10 European cities for anticipated price growth in the luxury residential market, with an estimated increase of 4.5%. This growth surpasses other prestigious cities, including Monaco, Milan, Geneva, and Paris. Furthermore, Lisbon is attracting a new generation of investors who value the city’s unique lifestyle, proximity to beaches, safety, excellent gastronomy, and robust infrastructure.
3. Infrastructure Expansion and Peripheral Development
Investments in infrastructure, such as the expansion of railway and road links, are making Lisbon’s peripheral areas more accessible. Cities like Setúbal, Aveiro, and Évora are emerging as new investment hubs, offering lower entry prices and significant growth potential. These areas are drawing investors seeking opportunities beyond traditional markets.
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