Data from Engel & Völkers, a German multinational specialising in luxury real estate mediation, found that 35 percent of investments in the city of Lisbon were made with foreign capital and of this, 21 percent belong to French customers.
The next biggest markets for luxury Lisbon real estate came from the British (18 percent) and Brazilians (18 percent), Germans (9 percent) and Chinese (7 percent).
The Engel & Völkers survey also found that different nationalities have different preferences, especially when it came to picking a neighbourhood of Lisbon to invest in. The real estate agency reveals that, in 2020, most French investments were in properties overlooking the Tagus, especially in the Estrela, Belém, Santa Maria Maior and Misericórdia neighbourhoods, where a property can reach €9,000 per m2. Brazilian investors, on the other hand, have a greater appetite for properties in the Santo António area (where the value per m2 also reaches €7,000) and in the Graça neighbourhood (where the price per m2 can reach €5,000). Meanwhile, British and German clients register a greater demand for properties in historic areas of Lisbon.
“Lisbon remains one of the favourite destinations for tourists, but also for foreign investors who fall in love with the dynamics and charm of the capital. We are witnessing a steady increase in the proportion of foreign buyers in the Lisbon residential market.
“Prices are still moderate compared to other major European cities. This, together with the incentives offered by the government, means that international investors enjoy various benefits and upside potential. Last year prices increased by 5.9 percent,” said Vanessa Moreira, Managing Director of the Lisbon Market Centre at Engel & Völkers.