Luxury home prices in Lisbon surpassed those in Madrid in June, settling at 14,600 euros per square meter, an increase of 3.3% compared to the previous period. The Spanish capital stood at 11,700 euros per square meter, with a rise of 2.4%. The data comes from the Savills World Cities Prime Residential Index study, released in September.
Still, Lisbon remains far from the most expensive European cities in the index, such as Paris, with 19,000 euros per square meter, and Geneva, which remains the most expensive city at 26,300 euros per square meter.
Regarding premium rents, Lisbon recorded an increase of 7.6% in July, reaching 30 euros per square meter, only behind Cape Town, which saw a rise of 7.9%. Rita Bueri, head of the residential department at Savills Portugal, explained that demand for homes to buy in Lisbon does not find sufficient supply, leading people to rent while they wait, which caused rents to rise more than double the purchase prices.
The study projects growth between 2% and 3.9% for Lisbon in the second half of 2026. According to Rita Bueri, as long as supply does not keep up with demand, Lisbon should close 2026 among the best-performing prime markets in Europe.
