In central Lisbon real estate market, sellers are kings.
The Portugal real estate boom is entering a new phase as a shortage of prime property in the Lisbon’s city centre is prompting some buyers to bid above the asking price for the last available units.
Lisbon real estate market revival began after the previous government eased long-held rent controls and started offering residence permits in 2012 to non-European property buyers, mostly from China. Portugal’s tax-friendly regime for foreign residents, the Golden Visa scheme, and a tourism boom that led to the conversion of hundreds of buildings into short-term rental apartments and hotels have also helped fuel demand.
With the housing stock available along Lisbon’s river Tagus tumbling, investors are starting to look for properties or land for development elsewhere.
Lisbon apartment prices in the city rose 35 percent from 2012 to 2016, when they reached the highest since at least 2007, according to Confidencial Imobiliario, which collects data on the Portugal real estate sector. In Lisbon’s historic centre, property prices increased 26 percent in the first half of 2017 while the number of deals fell 34 percent from the same period a year earlier, a sign of a shortage of housing stock.
Average home prices in the central historic neighbourhoods of Baixa, Chiado and Avenida da Liberdade were at 6,367 euros per square meter in the first quarter, according to a study by property appraiser and consulting company Prime Yield.
The country is expected to attract a record 3 billion euros in property investment this year, mostly from foreigners. That’s up from 1.3 billion euros in 2016, according to broker CBRE Group Inc.
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