Summary:
Lisbon's housing prices are now 25% higher than in Madrid.
Median housing cost in Lisbon reached €5,642/m2, the highest since 2015.
Lisbon is the most expensive city in the Iberian Peninsula for home purchases.
Prices in Lisbon are 3% higher than in San Sebastián, the priciest city in Spain.
Almost all major cities saw an increase in housing prices in Q2 2024.
The Allure of Lisbon
The charm, climate, and safety of Lisbon keep its residents rooted while attracting many families from abroad. The city boasts the highest job and leisure opportunities alongside excellent health and education services, enhancing the quality of life in Portugal's largest city.
Rising Housing Costs
However, the supply of houses for sale is insufficient to accommodate all the families looking to settle in Lisbon, compounded by investor interest. This imbalance has led to a significant increase in housing prices, making Lisbon the most expensive city for home purchases in the Iberian Peninsula.
According to Idealista, buying a home in Lisbon is now 25% more expensive than in Madrid as of the end of June. The median housing cost in Lisbon reached €5,642 per square meter, the highest recorded since 2015, which is double the national median of €2,683/m2.
Comparison with Other Cities
Lisbon consistently ranks as the most expensive city in both Portugal and Spain for home buying. The data indicates that Lisbon's prices are 25% higher than Madrid's (€4,514/m2) and 27% above Barcelona's (€4,430/m2), despite both Spanish cities hitting new price records in June.
Even when compared to San Sebastián (€5,461/m2), the most expensive municipality in Spain, Lisbon's prices are 3% higher. Following Lisbon, the next highest housing costs in Portugal are found in Porto (€3,578/m2) and Funchal (€3,388/m2), ranking 6th and 7th respectively.
Iberian Peninsula Rankings
The ranking of the 15 most expensive cities for home purchases shows a dominance of Spanish cities, with 10 listed compared to just 5 from Portugal. Nevertheless, Lisbon, Porto, and Funchal still present higher median prices than major Spanish cities like Bilbao (€3,301/m2) and Málaga (€3,016/m2).
Market Trends
This top 15 list illustrates that all the most expensive Iberian cities have prices exceeding €2,500/m2, surpassing the median of the Spanish residential market (€2,138/m2). Additionally, nearly all major cities saw increasing housing prices between Q2 2024 and the previous quarter, with the exceptions of San Sebastián and Bilbao, where prices remained stable.
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