As Lisbon’s reputation grows as a global hub for international companies and events, it also attracts new residents from around the world who are actively shaping the city’s future. The city centre has become increasingly popular among foreign buyers, thanks partly to financial mechanisms such as the Golden Visa and Non-Habitual Resident Regime that allow foreign investors to purchase property and obtain residence permits. This has contributed to Lisbon’s rise in value and helped it earn a place among the world’s best cities to live in.
According to the 2021 Census, Portugal’s population was projected at 10,167,925 or 10.168 million by July 1, 2021. In the last ten years, the unbalanced distribution of the Portuguese population throughout the national territory has become evident, with a greater concentration of the population in coastal areas and near the capital.
Resident Population in Lisbon City
4.9% of the Total Country Population
27% Active Population
76% Primary Residence
242,618 Family Households
The Lisbon Metropolitan Area represents 27% of the national population and accounts for 29% of households in Portugal. In this area, there was an increase of 1.7% in the total resident population and a positive evolution of 4% regarding the number of households (1.1 million).
The growth in the number of dwellings was below the trend of the resident population in the Lisbon Metropolitan Area. The population aged 65 and over has increased by 20.6% in Portugal. In this region, 53% of the population is between the ages of 25-64, and 21.6% is 65 or over.
Lisbon in Numbers
3.1 Million Inhabitants in the Lisbon Region
354,000 Companies Headquartered in Lisbon
36% of the National GDP Contributed by Lisbon
29% of National Employment Is From Lisbon
17.1 Million Tourists in 2022
32 Higher Education Institutions (Public and Private) In Lisbon City
44% of the Employed Population Hold Higher Academic Qualifications
The city of Lisbon has undergone socio-demographic and economic changes that have completely modified its dynamics, turning it into a modern and innovative urban metropolis of the world after a long and profound process of urban regeneration.
New International residents are moving to Lisbon.
The Covid-19 pandemic brought new health and safety concerns into everyday life. Likewise, it also brought about the “new tribes” to Portugal and new hybrid working models that offer greater flexibility for remote work. Digital nomads, freelancers, and expatriate professionals find Portugal a haven for living and working, helping shape the Portuguese residential market.Over the last decade, the number of foreigners living in Portugal has increased by 40% to more than half a million people, accounting for 5.4% of the Portuguese population. The demand for housing by foreign families is now joined by new tribes of professionals, boosting the residential purchase and rental market.Americans, French, and British people are among those who are leading this trend, with a preference for central locations that offer good networks of services and transport, as well as dwellings that offer more flexible, spacious spaces and outdoor areas.After the pandemic, Lisbon has become a destination for those seeking the hustle and bustle of a typical European capital while offering a balanced combination of business, culture, and leisure.New social dynamism has taken hold in Lisbon with a mix of new nationalities bringing life to once-forgotten areas and neighbourhoods of the city that are now the target of new modern quality residential real estate projects complemented by increasingly vibrant high street retail.“With its rich history, Mediterranean climate and status as a world “capital of cool,” Portugal’s largest city is at once an aspirational tech innovator and a must-live city for Europe’s young workforce” (Cognizant)
Lisbon was named the European Green Capital in 2020 because of its commitment to sustainable and environmentally responsible mobility measures. The city has set a goal of reducing greenhouse gas emissions by 60% by 2030, which has made energy efficiency a priority. This not only helps achieve the goal but also improves the quality of life for residents.
Lisbon offers many sustainable ways to get around, such as walking, biking, electric scooters, public transportation, and shared vehicles. These options are part of a global effort to promote sustainable development.
Every day, about 400,000 people come to Lisbon from nearby neighbourhoods. The city developed a single fare pass that costs €30 in Lisbon and €40 in the Lisbon Metropolitan Area to make it easier for people to get around. Demand increased by 30% due to this historic measure that streamlined and reduced fares.
There were already 17 shared transportation providers in Lisbon in 2019, offering about 30,000 trips per day to roughly 400,000 users. Public initiatives have encouraged sustainable mobility, and private companies are interested in creating complementary mobility services. With technological systems that combine data connections with shared vehicles, private companies have made significant investments in the new dynamics of Lisbon.
Lisbon’s “Smart City” prowess has been years in the making. It’s also something that has been baked into the city’s business and education communities, laying the foundations for even more impressive innovation over the years ahead. (The Portugal News)
Lisbon has a clear vision for sustainable urban mobility, with measures to restrict car use and prioritise cycling, public transport, and walking. Lisbon’s mobility strategic vision 2030 aims to reduce the use of private cars by 28% to attain a modal split of 66% for public transport, walking, and cycling.
56 Companies signed the Corporate Mobility Pact (CMP) in December 2019.
200 mobility actions designed to make mobility more sustainable in Lisbon
28% reduction in Private car use by 2030
Lisbon Neighbourhoods & Prices
Average Price per Sqm – Lisbon City Market
PRIME ZONE: €3,000 – €14,000
UPPER CENTRAL ZONE: €4,000 – €9,000
CENTRAL ZONE: €4,000 – €9,000
WEST RIVERSIDE: €4,000 – €8,500
EAST RIVERSIDE: €2,000 – €7,500
HISTORIC HILLSIDE ZONE: €4,500 – €7,500
PARQUE DAS NAÇÕES: €3,300 – €7,500
UPTOWN RING: €3,500 – €7,500
AVENIDA DA LIBERDADE
This avenue is the epitome of luxury, attracting tourists and international investors who find many high-end residential projects in this part of the capital. These projects result from extensive urban regeneration processes that preserve the historical character of the facades and architectural features that make Av. da Liberdade unique.
This ideal location allows its residents to walk to other central cities, such as Amoreiras, Príncipe Real, or Saldanha.
Av. da Liberdade is an area that targets the luxury market, with high-quality projects that include parking, balconies, terraces, swimming pools, gyms, and security services. The most common type of apartment here is T2.
Property Price per sqm: €8,700 – €11,000
CHIADO PROPERTY MARKET
Chiado is a charming, historic, and luxurious area in the heart of Lisbon. It attracts people who want to feel the city’s history and culture. They can find bars, restaurants, shops, galleries and antique stores in the alleys and streets. Chiado has a cosmopolitan vibe, with tourists and locals mixing well. It combines the Portuguese tradition with the modern and global city.
This area targets the luxury market, with primarily two-bedroom properties. Many projects have big balconies and terraces, some with river views.
Building located in one of the most desirable neighborhoods in Lisbon in the heart of the capital. Neighborhood that has a lot to offer…
Beds1, 2, 3, 4, 5, 6
Baths2, 3, 4, 5, 6
Type Apartment, Buildings, Commercial
This area is between Rossio and the river. It has straight streets and old buildings. The Arco da Rua Augusta shows the beautiful Praça do Comércio and the river. Tourists like this part of Lisbon. Many buildings have been fixed for tourists and residents. They keep some old features from the past. There are many shops, restaurants, and cafes in Baixa de Lisboa, making it a nice place to visit.
Most homes have one bedroom, high ceilings, and balconies with river views.
Príncipe Real is charming and elegant. This area has a royal history, with many palaces and buildings belonging to the Portuguese nobility. The famous Príncipe Real Garden is a green space for leisure.
It has exclusive shops with unique designs from national and international brands. The homes have sophisticated architecture, mostly two bedrooms, and many have balconies and terraces with river views.
Property Price per sqm: €8,000 – €11,000
Campo de Ourique
This area is for families who want to live in the city but love calmness, green spaces and shops. It is easy to get around this flat area with gardens, restaurants and cafes.
It is in the Prime zone of Lisbon. It has mostly two-bedroom flats with garages, balconies and terraces.
Property Price per sqm: €3,000 – €9,000
This area is very charming, with palaces and river views. Many families have lived here for generations. The famous Jardim da Estrela is a central place for residents, tourists and students to enjoy. There are also many schools, services and shops for convenience.
The new homes have mostly two bedrooms with balconies and terraces. Most units have parking spaces, and some buildings have outdoor areas and pools.
Property Price per sqm: €6,700 – €7,200
This area is the core of the city, where residential and office buildings coexist with trendy eateries, shops, and parks along avenues and main streets. It is a distinguished area where historic buildings with awards and modern buildings with renovated features blend and where cycling paths offer faster and greener transportation. It reflects the vitality, diversity and global appeal that Lisbon has gained in recent years.
Those who live and work in this central area of the city, where everything is within walking distance, benefit from its flat layout, which extends along parallel streets and creates a neighbourhood feel.
Most of the homes on Avenidas Novas were renovated, and they all have private parking, terraces, and balconies. Some projects also have pools, gyms and outdoor common areas. Two-bedroom units also are more common.
Property Price per sqm: €4,000 – €9,000
Bairro De Alvalade
Bairro De Alvalade is a small neighbourhood with a varied retail offer that attracts new residents. Its main street is Av. da Igreja, where traditional and modern restaurants coexist. It is a neighbourhood for families who appreciate living in the centre of Lisbon but in a quiet area with green spaces.
The most common typologies are mainly three bedrooms, with parking spaces, terraces and balconies.
Property Price per sqm: €4,000 – €9,000
This area of the city has transformed itself over time. It used to be neglected and known for its old industrial buildings and poor connections to the city centre. But in recent years, it has revived with the help of innovative companies that renovated old structures into modern spaces. Alcântara is now home to the famous LX Factory. It offers a stunning view of the river and a lively, creative and young vibe. You can find restaurants, bars, parks and cultural venues, as well as quality housing options, mostly one-bedroom flats with nice outdoor areas, balconies, terraces and parking.
Property Price per sqm: €7,000 – €7,500
BELÉM & AJUDA
Belém is a popular tourist destination, famous for its historical monuments that date back to the Age of Discovery, such as the Tower of Belém and the Jerónimos Monastery. It is also home to the Centro Cultural de Belém and the new MAAT museum, which showcases architecture and technology.
It offers spacious residences, mostly T4+ units, with parking spaces and amenities like pools, gardens and gyms. These are part of high-quality and prestigious new construction and renovation projects.
Property Price per sqm: €4,000 – €8,500
Lisbon: Evolution of House Prices
MARVILA & BEATO
This area of the city used to be industrial, with many warehouses and empty spaces. But in recent years, it has changed a lot. Famous chefs and restaurant owners have opened new and creative restaurants here. This has made Marvila a cool place to visit. This area is also good for business. It has a lot of space for offices.
One example is the Beato Creative Hub Project. It is a place for creative and tech companies. It is being built in an old factory area by the river. It has just opened in 2022 and has already become very popular, even before its opening. One of the big companies there is Mercedes-Benz.io. It is the biggest digital centre of Mercedes in the world. For housing, there are mostly two-bedroom flats. They are big and have garages and terraces. Some also have shared outdoor spaces.
Property Price per sqm: €3,000 – €7,500
Under the Historical Hillside
Alfama is one of the most charming and historic neighbourhoods of Lisbon. It attracts thousands of tourists yearly who explore its narrow streets and steep stairs. Alfama has a Portuguese and historical soul, and it is one of the oldest areas of Lisbon, rich in history and tradition. The sound of Fado, a UNESCO Intangible Heritage, fills the air in Alfama in its various Fado houses and fine dining restaurants.
Most of the housing options in Alfama are for those looking for smaller units, with many one-bedroom flats. Most of the new housing units have balconies with views of the Tagus River and Lisbon.
Property Price per sqm: €4,500 – €7,500
Graça is one of the historic neighbourhoods of Lisbon, but it also has a new, young, and artistic vibe that blends well with the old elements. The neighbourhood embraces urban art, and it is the place where famous national and international artists like Shepard Fairey or Vhils can see many artistic expressions and murals.
Its housing options are mostly T2 flats with spacious areas, balconies and parking spaces.
Property Price per sqm: €4,700 – €7,500
PARQUE DAS NAÇÕES
This area is located in the eastern part of Lisbon and was created from a necessary urbanistic process. Parque das Nações is also known as the Expo Zone because its location allowed Portugal to host the 1998 World Expo. This subsequently led to the creation of various infrastructures and facilities that transformed Parque das Nações into a target area for quality and prestigious residential projects aimed at the upper and upper middle class.
Many well-known multinational corporations, most of which are involved in the TMT industry, have chosen Parque das Naçes as their location of choice because of the area’s many favourable conditions for starting a business. It is regarded as Lisbon’s most contemporary district.
Parque das Naçes has produced a new centrality with its buildings that rise with contemporary façades overlooking the river. A full transportation network is available, and Lisbon Airport is only 10 minutes away. Parque das Naçes is a highly competitive location in the Lisbon market thanks to its excellent accessibility to both the city centre and the rest of the country. Additionally, it has both public and private schools, which draw families who value the high standard of living that allows them to stroll along the river on foot or by bicycle.
In contrast to the history and tradition of the neighbourhoods in the city’s centre, its residential park has a more contemporary feel.
Property Price per sqm: €4,300 – €9,500
Under the Uptown Ring
This area covers the newest parts of Lisbon, surrounding the main road that leads to the city, the Segunda Circular. It consists of the residential areas of Benfica, Carnide, São Domingos de Benfica and Olivais, where people from the middle and upper-middle classes live, as well as Telheiras and Alta de Lisboa (Lumiar), which are the latest developments, built according to urban plans from the 1970s and 1980s respectively. This zone is characterised by modern and tall buildings, green spaces and various services and shops. It has easy access to the main roads and a network of transport options to the city centre and beyond.
AVENIDA GOMES PEREIRA
Avenida Gomes Pereira is the main street in Benfica, where there used to be industry and street trading. Residential projects have replaced industrial spaces. It is named after José Gomes Pereira, a Portuguese physician and politician born in Benfica in 1879.
It has several schools, churches and sports facilities along its length.
LARANJEIRAS & LUZ STREETS
The road that connects S. Domingos de Benfica and Carnide. It has older buildings on the Carnide side and newer medium-high buildings in S. Domingos de Benfica. Both have shops, leisure and services.
It is also known as Estrada da Luz, which means Road of Light in Portuguese. It passes by the Colombo Shopping Centre, one of the largest malls in Europe.
Rua Professor João Barreira is known as the “doctors’ neighbourhood” because it attracted many graduates when it was created. This street has many cafés and nightlife spots. It is named after João Barreira, a Portuguese professor of medicine who died in 1974.
It is part of Telheiras, a neighbourhood that was planned in the 1970s as a model of urbanism.
AVENIDA DE BERLIM
The artery that splits the neighbourhood of Olivais into north and south links the Lisbon Airport and the Gare do Oriente / Parque das Nações. It is named after Berlin, the capital of Germany, as part of a series of streets named after European cities in Olivais. It crosses the Moscavide Bridge, offering a panoramic view of the Tagus River.
The Lisbon metropolitan area covers 18 municipalities and has a population of 3 million people, making it the 11th largest urban area in the European Union. The Lisbon metropolitan area includes some of the most historical and cultural places in Portugal, such as Sintra, Cascais, Estoril, and Belém
Cascais, a city located on the Portuguese Riviera between Lisbon and Sintra, has a long history as a royal and aristocratic retreat. Since the 19th century, Cascais has been the summer residence of the Portuguese monarchy and nobility, including foreign royalty and celebrities. Cascais is known for its elegant villas, historic palaces and fortresses, and charming old town.
Cascais is also a popular tourist destination, offering a variety of attractions and activities. It has a marina that hosts sailing events such as America’s Cup. This casino inspired Ian Fleming’s Casino Royale and several museums and cultural venues. Cascais has beautiful beaches, some ideal for surfing and windsurfing, and a natural park covering the Sintra-Cascais mountains and coastline.
Cascais has a diverse and high-quality residential offering. Some of the most exclusive properties are located along the coast, in Estoril, Monte Estoril and Guincho, where stunning sea views and luxury amenities are available. The inland areas of Alcabideche, Manique and Malveira da Serra offer more affordable options, with spacious houses and apartments surrounded by greenery and tranquillity. Cascais is one of Portugal and Europe’s wealthiest and most desirable municipalities.
Oeiras is a municipality that enjoys a strategic position between Cascais, Sintra and Lisbon and benefits from its proximity to the Tagus River Estuary. It has attracted and developed residential projects for the middle and upper segments of the market, offering both flats and houses, as well as beaches and space for urban planning. As a result, it has the highest income per capita and the highest percentage of people with higher education in the country.
Oeiras has also become an attraction for national and international companies in science, technology, and innovation companies. It hosts a large number of universities and research institutes.
The residential offer in Oeiras is very diverse. Some of the older prime developments and villas are situated by the river in Paço de Arcos and Caxias. Some were converted from historic buildings, along with middle-class housing developments. The newer ones are located inland, in Linda-a-Velha and Carnaxide, in an area of the planned expansion, with quality construction and adaptation to current post-pandemic needs. This municipality has a good position in this regard, as it has many available construction areas and projects in progress.
Trend of Real Estate Prices (Per SQ M) In Cascais and Oeiras
The majority of Lisbon’s residential market between 2013 and 2019 consisted of urban rehabilitation projects in the city centre. Government programmes and benefits that catered to the Golden Visa market supported this. In spite of the huge demand, it took attention away from new projects. Due to issues including high construction prices and lengthy licencing procedures, new construction has decreased over the past few years. As a result, despite a 6% increase in 2020, new supply has declined by 25% since 2019.The medium-high segments are where new residential construction is currently concentrated in Lisbon. Making a modern supply with larger areas at reasonable pricing tailored to the demands and potential of the country’s middle class is a task for the upcoming years.The national residential market continues to break records between 2021 and 2023. Although still affected by the pandemic context, it is fully recovering to pre-pandemic values. Almost 165,000 residences were sold for a total of 28,000 million euros in 2021. Homes were sold at a rate that was 27% higher than in 2020 and 13% higher than in 2019. The city of Lisbon acquired 22% of all the properties sold in the Lisbon Metropolitan Area.The Lisbon city market has the most housing supply in the parishes of Avenidas Novas (Central Zone), Santo António, and Estrela (Prime Zone), with sales prices that are higher than the Lisbon municipality’s average (€3,973/sq m).
Trend of Average Sale Price Per SQ M in Lisbon City Market
The price per sqm of a new property in Lisbon is €6,200/sqm on average for a new property in Lisbon (most launches are in dynamic and prestigious areas). Prices are higher in Lisbon’s historic centre. Prices range from €7,000 to €7,500 per square metre for new properties or fully renovated schemes. In November 2022, property prices were up by a huge 15.2% (4.8% in real terms) from a year earlier to a median price of €1,929 per sq. m in the Lisbon metropolitan area.
Trends of Real Estate Prices in Lisbon Prime Market
According to Savills’ World Cities Prime Residential Index Study, Lisbon’s prime residential market has been stable and resilient during the pandemic, making it an attractive and safe investment that is resistant to economic fluctuations. The study also shows that Lisbon outperformed the average prime segment prices of cities such as Madrid and Barcelona.This segment is predicted to grow in line with the global average (4.3%), albeit more slowly (1.9%), than in prior years, when it grew more quickly and is now expected to stabilise.The prime residential property in Lisbon appears to be good value when compared with its global counterparts. Values, at €8,400 per sq m, are 80% below those in Hong Kong (the most expensive city in the world for prime residential property), 65% below prime prices in New York, and around half those in London.In November 2022, property prices were up by a huge 15.2% (4.8% in real terms) from a year earlier, to a median price of €1,929 per sq. m in the Lisbon metropolitan area.
Trend of Average Sale Prices Per SQ M in Lisbon City Market
Source: INEFACTORS IMPACTING LISBON REAL ESTATE MARKET
Rising Construction Costs and the Impacts on the Housing Market
The continuous increase in construction costs and materials, coupled with the shortage of skilled labour, has proved to be a challenge for the real estate sector.According to INE figures, the cost of building new homes increased by 7.2% at the end of January 2022, while the cost of labour and the price of materials increased by 9.1% and 4.5%, respectively. This pattern was similar to what we saw in December 2021, when the cost of building new homes increased by 6.8% annually, while the cost of materials and labour increased by 8.0% and 5.1%, respectively. The price of constructing new homes climbed by 13.4% by July 2022, up 0.9 percentage points from the prior month. The cost of labour and the cost of materials both saw annual increases of 17.5% and 7.7%, respectively. In November 2022, construction costs for new residential buildings were estimated to have increased by 11.7% yearly, 0.6 percentage points (p.p.) less than in the previous month. The price of materials and labour costs rose by 15.4% and 6.7%, respectively.In February 2023, construction costs for new residential buildings are estimated to have increased by 9.1% on a year-on-year basis, 2.0 percentage points (p.p.) less than in the previous month. The price of materials and labour costs rose 9.3% and 8.8%, respectively.Research shows that one of the key factors causing this surge in construction costs was the COVID-19 epidemic. Given the pandemic’s observed trends, a predicted drop in demand caused raw material producers to reduce their manufacturing stock levels.On the other hand, the prices of material costs are currently under higher pressure due to the positive evolution of the economic recovery, which could affect the increase in the final value of a property.Portugal continues to gain from the massive housing demand, which is still growing. International investors and a growing proportion of Portuguese families and investors took advantage of this trend because they saw the residential market as a source of income that offered more competitive returns than other categories of financial commodities. The pandemic crisis additionally demonstrated the adaptability of Portugal’s real estate market in general and the residential sector in particular. These were observed in the trends that exceeded pre-pandemic levels in terms of transaction and investment volume.Strong and persistent demand is responsible for the success and speed of absorption of the new supply that comes into the market. Most of these new properties are sold while still in the planning stage. And due to this demand, the current supply keeps declining.Making precise predictions about the actual effects and duration of this price increase is difficult. However, developers and builders are already experiencing challenges. A building period extension, possible postponements, and the adoption of wait-and-see approaches by developers are all conceivable outcomes of the price increase given the current scenario, which may reflect in the pricing of housing that is being built.
Buildings and Numbers
LISBON METROPOLITAN AREA
PRIMARY RESIDENCE: 79%
STOCK GROWTH OVER THE LAST 10 YEARS: 3%
PRIMARY RESIDENCE: 76%
STOCK GROWTH OVER THE LAST 10 YEARS: 1.6%
TRENDS OF CONSTRUCTION COSTS
TRENDS OF COMPLETED BUILDINGS FOR FAMILY HOUSING IN LISBON METROPOLITAN AREA
Source: INEIMPACT OF INTEREST RATES ON PORTUGUESE RESIDENTIAL MARKETThe implicit interest rate for all housing loan agreements increased from 2.183% in January to 2.532% in February 2023. For the contracts that were closed in the previous three months, the interest rate increased from 3.139% to 3.409%. The average value of owed capital increased by 177 euros, reaching 62,533 euros. The average value of loan repayments increased by 7 euros to 322 euros, representing an increase of 26.3% in nominal terms compared to the value observed in February 2022. In the contracts celebrated in the last three months, the average value of loan repayments increased from 38 euros to 569 euros.According to OECD data, the unemployment rate in Portugal fell to 5.7% in Q2 2022, down from 5.9% in the previous period. The interest rate is expected to be 2.50% by the end of Q1 2023 and trend around 3.50% in 2023 and 2.75% in 2024, according to Trading Economics global macro models and analysts’ expectations.The economic forecast for Portugal declared that headline inflation rose from 9.5% (y-o-y) in 2022-Q3 to 10.2% in 2022-Q4 as the observed acceleration in prices of food and industrial goods outweighed the slowdown in prices of energy and services. Inflation is projected to slow further over the forecast period in line with the downward correction in wholesale energy prices and the assumed developments in commodity markets. Overall, inflation is projected to slow from 8.1% in 2022 to 5.4% in 2023 and 2.6% in 2024.In Portugal, more than 90% of bank loans are at variable rates, with average financing amounts increasing annually. The increase in the inflation rate in the Euro Zone (in February 2022, it reached 5.8% due to the increase in fuel prices) is putting greater pressure on a review of European monetary policy, which will impact the Euribor rate in 2023.From a macroeconomic point of view, the last three years have brought benefits for household savings. The unemployment rate and inflation have been declining, and the amounts of term and current deposits have increased. However, with the soaring interest rates of the European Central Bank, it is expected that there will be an impact on demand in the national residential sector. With the increasingly imminent scenario of rising interest rates indicated for the year 2023, the question that arises now is what impact will it have on the monthly budget of families, and what impact will it have on applications for and granting of home loans?In Portugal, families are not expected to feel, in the short term, the strong impact of the increase in their monthly mortgage payments.
EVOLUTION OF LOANS GRANTED FOR HOUSE PURCHASE VS INTEREST RATES
Source: INEEFFECT OF COVID 10 PANMDEMIC ON LISBON RESIDENTIAL MARKETThe demand for housing has persistently remained high, even though the motivations keep evolving. The pandemic, with its compulsory confinements and the obligation to work from home, made families reassess their needs.We realised that most homes were not prepared for working from home. Most worked at the dining room table or in the kitchen without a clear division between the family sphere and the workspace.Larger homes, outdoor spaces and areas convertible into a workplace became the most desired requirements when searching for a new home. The demand for more outdoor space and contact with nature led to an increase in demand in locations outside large urban centres with lower population densities.From the ashes of the 2010 financial crisis, Lisbon has reinvented itself as a global hub of innovation and near-shore services for Continental Europe. Fast-forward to today, and, like Barcelona in Spain and Seoul in South Korea, Lisbon is one of the world’s capitals of cool. While Lisbon, like the rest of the world, was fighting to control the pandemic, the fundamentals of the city remain the same. – CognizantThe foreign community in Portugal has been growing due to several factors. These include the good climate throughout the year, affordable cost of living, quality of transport, health, education and technology services, security, geopolitical factors such as EU membership and political and social stability. These positive arguments have contributed to the settlement of foreigners in Portugal, whether at working age or at retirement.The pandemic has added a new purpose to settling in Portugal. The possibility of remote work and digitalisation combined with the proximity to most European capitals make Portugal strategically well-placed to domicile a profession that does not require regular office attendance. Although the resident population in Portugal has decreased in the last 10 years, INE data reveals that the resident foreign population has increased by 52%.WITH THE END IN SIGHT FOR THE PORTUGAL GOLDEN VISA, WHAT EFFECTS WILL IT HAVE ON THE PRICE TRAJECTORY OF THE RESIDENTIAL MARKET?According to Bloomberg, Portugal will end its so-called golden visa programme for new foreign property buyers as it tries to address the lack of affordable housing in one of Western Europe’s poorest economies. The programme has been criticised for its effect on the soaring house prices, which drives out the locals.It is expected that the termination of the programme will lead to a decrease in demand for real estate and a subsequent decrease in prices for properties in Lisbon and Portugal at large.
Sustainability has become a major concern globally. Governments and societies are now obligated to extend the life of buildings, increase their resilience, and improve their comfort levels with benefits for the health and quality of life of the population. The goal is to achieve carbon neutrality by 2050
There are several initiatives to support home efficiency improvements in Portugal. The Environmental Fund supports environmental policies in pursuit of sustainable development goals, national and international commitments, and in particular, those related to climate change, water resources, waste, nature conservation, biodiversity and transition to the circular economy.
Improving the energy efficiency of buildings is deemed a policy priority by the Portuguese government for decreasing energy poverty in the country. The Recovery and Resilience Plan (RRP) provides for 610 million euros to be invested in improving the energy performance of Portuguese buildings until 2026.
The Environmental Fund is helping all those who want to make their homes more efficient, encompassing six types of changes and improvements, namely: windows; thermal insulation; air conditioning and hot sanitary and renewable water; photovoltaic panels; water efficiency and materials.
It has had a high take-up and the Sustainable Buildings Support Programme has already been boosted by more than EUR 15 million.
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