Foreign Investment Decline in Lisbon in 2023
In the initial half of the year, foreigners acquired 770 residential buildings or apartments in Lisbon, generating a turnover of €442.9 million. Comparing this data year-on-year reveals a 19 percent decline in the number of properties sold to foreigners and an 18 percent reduction in the total transaction value.
Confidencial Imobiliário which provided these figures, stated that buyers from 58 nationalities invested in houses or residential buildings in Lisbon. Notably, the French and North Americans each accounted for 10 percent of the properties acquired by international investors. Following closely were the British with a 6 percent share, while the Chinese, Brazilians, and Italians each held 5 percent, 3 percent, and 3 percent shares, respectively.
The data from Confidencial Imobiliário considers properties within the Lisbon Urban Rehabilitation Area (ARU), covering all city parishes except Santa Clara, Lumiar, and Parque das Nações. The analysis is based on the reported elements of property rights preference from Lisbon City Council.
The Portuguese capital sees 19% dip in foreign real estate investments, shifts in buyer nationalities and new emerging trends.
Interest from foreigners has expanded beyond the historic center to areas like Benfica, Campolide, Alcântara, Areeiro, and Alvalade, where sales have grown by over 50%, surpassing the numbers in Santa Maria Maior, Misericórdia, and Santo António, each accounting for around 80 operations (10% of total sales).
However, the decline in foreign property purchases in Lisbon is mirrored by a reduction in Portuguese investment. According to the Confidencial Imobiliário report, in the first half of the year, Portuguese buyers acquired 1,630 residential properties, totaling €673.1 million in turnover, reflecting year-on-year declines of 22% and 13%, respectively.
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