Lisbon's Property Prices Skyrocket to €5,886/m² in October 2025 Amid Foreign Demand Surge

Lisbon's Property Market Reaches New Heights in October 2025

Lisbon's real estate market has achieved a significant milestone with average property prices reaching €5,886 per square meter in October 2025. This new peak reflects a robust demand, particularly from international buyers, who are setting the market’s pace. According to Idealista, foreign transactions are priced nearly two-thirds higher than domestic deals, underscoring the influence of global investors. Santo António has emerged as the most expensive parish, with prices at €7,289 per square meter, indicating that foreign investment is concentrated in key luxurious neighborhoods across the capital.

Foreign Buyers Drive Lisbon's Housing Premium

The influx of international investors continues to reshape Lisbon's housing market, creating a substantial premium on property prices. As detailed by Investropa, foreign buyers accounted for 23% of all sales in Greater Lisbon in 2023, with US citizens leading the pack followed by the French and British. This trend has persisted into 2025, with expectations of continued price growth between 3% and 7% compared to last year. The foreign-buyer premium not only highlights strong international interest but also underscores the competitive nature of Lisbon’s real estate market.

Santo António and Prestigious Areas Command Highest Rates

Santo António remains a focal point for luxury investment, with property prices averaging €7,289/m². Other prestigious areas such as Avenida de la Liberdade, Chiado, and Principe Real also command high prices, reaching up to €12,000/m² for new builds, according to Tagus Property. These areas are characterized by a blend of historic charm and modern amenities, making them particularly attractive to foreign investors seeking exclusive residential environments.

Santo António remains a focal point for luxury investment, with property prices averaging €7,289/m².

Average Prices in Lisbon Surpass €6,000/m²

According to Tagus Property, the average property price in Lisbon, considering all conditions and areas, is €6,424 per square meter. However, prices for new or fully renovated properties in prime locations can exceed €9,000/m². The consistency of upward trends in the market is further corroborated by The Portugal News, which reported a 2.4% increase in the luxury sector during the first half of 2025, positioning Lisbon as a notable performer in Europe’s high-end real estate markets.

Comparative Data of Lisbon's Real Estate Trends

This table illustrates the consistent rise in property prices in Lisbon, fueled by international demand. As highlighted by Mono Estate, the city’s attractiveness is bolstered by its lifestyle offering, stability, and relative affordability compared to other capitals.

Expert Insights and Future Implications

According to Maya Tarek, Senior Analyst at RealEstateAbroad.com, the current trajectory of Lisbon's property market signifies a stable yet competitive environment for investors. The balance of traditional charm and modern infrastructure continues to draw a diverse pool of international investors. With ongoing demand, particularly in luxury sectors, Lisbon’s market is poised for sustained growth through 2026. High rental yields and favorable government policies further enhance the city’s appeal. As noted by Portugal Investment Properties, investors are advised to capitalize on Lisbon's real estate as a strategic asset in their portfolios, particularly focusing on areas with high rental potential and capital appreciation prospects.