Portugal real estate has been confirmed to be booming over the last year, with Lisbon a property market to watch in 2019.
Average sale prices on Portugal real estate have risen by over 15 per cent over the past year and are expected to continue.
The latest Confidencial Imobiliário Residential Price Index has confirmed that average prices in Portugal real estate were up by 15.6 per cent in September when compared to September 2017.
The research also found year-on-year increases of over 10 per cent have now been recorded every month since July 2017. This year alone, valuations were consistently above 13.5 per cent, reaching a high of 16.4 per cent in May and settling in at around 15 per cent ever since.
The recovery in Portugal real estate began in the last quarter of 2013 according to Confidencial Imobiliário figures, however year-on-year price increases remained at around 3 per cent for the first three years.
2016 saw a real pick-up in the speed of price rises, with prices rising by between 3.5 per cent and nine per cent by the middle of last year, and significantly increasing the pace of growth since then, with double-digit year-on-year variations.
This cycle of successive increases led to prices being 10.6 per cent above the pre-crisis period in 2007 and having recovered 41.4 per cent from their lowest level in June 2013.
Further good news for Portugal real estate is that the capital Lisbon has been named the number one European real estate investment destination for 2019.
Lisbon was named as the top European investment destination by the latest edition of the ‘Emerging Trends in Real Estate’ study by PricewaterhouseCoopers (PwC) and the Urban Land Institute.
Having missed out on the top ten in the 2018 list, Lisbon has now flown past other cities such as Dublin, Madrid, and this years’ number one Berlin to top the list of dynamic cities to invest in 2019.
The report said that Lisbon is this year’s choice for overall prospects, rising 10 places to Number 1, largely thanks to its ‘still relatively cheap labour and real estate’, ‘outsize returns’ and ‘quality of life’.
The report also stated that the ten major cities earmarked by investors for 2019 – Lisbon, Berlin, Dublin, Madrid, Frankfurt, Amsterdam, Hamburg, Helsinki, Vienna and Munich – are a ‘mix of smaller newcomers and larger tried and tested markets’.
Lisbon has already been attracting overseas property investors, and it looks like this is set to continue.