Summary:
Lisbon's luxury home prices are rising rapidly, outpacing cities like New York and Berlin.
Knight Frank's report shows a 4.7% increase in prices in the second quarter of 2024.
Lisbon is the second city globally for price acceleration, only behind Stockholm.
The city ranks eighth in luxury home price increases among 44 major cities.
The growth indicates that foreign investment in Lisbon remains strong and attractive.
Rising Luxury Home Prices in Lisbon
The luxury home prices in Lisbon are experiencing a remarkable surge, outpacing cities like New York and Berlin. Recent data from Knight Frank, which analyzed 44 cities, reveals that prices in the Portuguese capital continue to rise at a significant pace, marking it as the second city globally with the highest acceleration of prices in the second quarter of this year.
According to the Prime Global Cities Index by Knight Frank, the annual growth of global home prices has slowed down from 4.1% in the first quarter of 2024 to just 2.6% in the second quarter. Liam Bailey, Knight Frank's global research director, notes that the slowdown in price growth reflects the lack of stimulus from rate cuts, suggesting that the future price increases depend heavily on central banks and their willingness to lower rates further in the next 12 months.
Lisbon's Impressive Market Performance
Despite the global trend, Lisbon's residential market is thriving. The report indicates that home prices in Lisbon rose by 4.7% in the second quarter of this year, a significant increase from 1.8% in the previous quarter. This positions Lisbon as the second fastest for price acceleration, just behind Stockholm.
When examining the rankings for the largest increases in luxury home prices across the 44 cities, Lisbon ranks eighth, surpassing major cities like Singapore, Sydney, Monaco, and Tokyo. This indicates that the cost of buying a home in Lisbon is increasing at a faster rate than in many other prominent global cities.
Francisco Quintela, CEO of Quintela + Penalva, a partner of Knight Frank in Portugal, stated that this price growth highlights the attractiveness of the national market for foreign investments and signals positive indicators regarding Portugal's economic stability. Liam Bailey also agrees, emphasizing that Lisbon remains highly appealing to investors due to the quality of the product available in the market.
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