The opportunities for real estate investment in central Lisbon right now are many, varied, and compelling. This is a big area made up of many distinct neighborhoods.
Real Estate For Every Budget
So many areas of opportunity mean that your challenge as a property investor is narrowing your search zone.
One thing that can help fine-tune your search is budget. Per-square-meter prices in Lisbon range from a low of 1,500 euros to as much as 7,000 euros.
This means a 50-square-meter apartment in one of the lowest-cost neighborhoods can sell for 75,000 euros… whereas the same size apartment in Chiado, for example, would cost more than four times as much, or, say, 350,000 euros.
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A reasonable budget would start at the 200,000 euro mark for a good sized two-bedroom apartment that would work for short-term rental.
Some areas of Lisbon have seen appreciation of as much as 20% in the last year. If you’re looking for a great value, focus on areas outside the “best” neighborhoods—though it is still possible to find a decent renovation project for a great undervalued price even in those top districts. I don’t think this will be true for too much longer. The market continues to build momentum, and inventory is moving.
A good rental yield in the current market is in the range of 5% to 8% net, but appreciation should add nicely to this return over the next couple of years… again, buying outside the highest-end areas.
Lisbon has a lot to offer the visitor but hasn’t historically been a major tourist destination compared with other European capitals. This appears to be changing. Tourism was up for Portugal in general in 2016 for the sixth consecutive year, exceeding 10 million visitors for the first time in the country’s history. Lisbon, too, specifically, saw record numbers of tourists last year—more than 3 million.
