If you are looking for luxury houses for sale in Lisbon, know that you are not the only one: the capital is the second most sought-after in Europe for investments of this type. The first one is Paris.
Of course that this might’ve happened because of the Golden Visa, an option that is no longer available since early 2022 for this type of investment, so the question rises:
Is it still worth investing in luxury houses in Lisbon?
And we are here to tell you that YES! The investment is still justified and here we’ll explain you why.
According to the Imovirtual Real Estate platform, rents in the district of Lisbon registered an increase of 28.3% in July 2022 compared to the same month of last year, while the price of houses grew 6.6% in the region in this same period. It’s a lot!
And this can be observed throughout the country, even if rents are historically higher in the region of Lisbon.
So, if the financial return is an average of 3% for real estate investment in the capital in general, for luxury properties this percentage is even higher, reaching 4.3%.
Not to mention that the prices in the city, compared to other European capitals, are very competitive. While 1 million euros buys 50 m² in Paris and only 35 m² in London, the same money can represent an acquisition of 100 m² in Lisbon.
Not to mention that the reasons for living in Lisbon are many and go beyond financial issues. There is the lifestyle provided in a more sunny region, closer to nature, paradisiacal beaches just a few minutes away, in addition to the mild climate and security.
It’s unmissable, in our humble opinion!
Where to find luxury homes for sale in Lisbon?
You can look for it with the help of professionals, such as independent or real estate agencies specializing in the luxury sector. Each has its benefit, especially when making such a large investment in an unknown country, with laws and bureaucracy that are different from what we are used to.
Trust us: Portugal is not for amateurs when it comes to bureaucracy!
How much does a luxury home for sale in Lisbon cost?
In Portugal, a property is usually considered luxury from values close to, or above €500,000. But in Lisbon, the investment can be between €730,000 and €3 million, depending on the chosen area.
And with the change in Golden Visa rules, demand for residential properties in Lisbon fell close to 10%. But even so, the professionals specialized in luxury homes for sale in Lisbon, say that rents have risen in the same proportion as property prices, which makes the investment even more profitable than certain investments in the financial market.
It is also due to the high rental prices that many foreigners, who account for around 70% of its clients, choose to invest in Lisbon. There is a clear movement of moving to Portugal, renting an apartment to live in, and then choosing to buy the property.
Last, but not least, our main tip is: “don’t look for it alone”.
A specialized real estate agency/professional can help with legislative and bureaucratic issues, and save many problems, in addition to offering adequate assistance in relation to the best locations and properties in the region, assisting with bank loan processes and the contract, for example.
A different country involves different rules and, therefore, an investment in luxury homes for sale in Lisbon must be done with care and information.
That’s why we from Live Abroad Portugal are here. We do everything for you, from taking you on a guided tour to see properties and tell you the story behind every little place, and then, going through all the paperwork so you don’t have to stress about anything but signing the papers and getting your keys.