Lisbon remains on foreign investment radars in 2023

Real estate has been identified as a "resilient opportunity" by a London-based residential and commercial property consultancy firm.

United Arab Emirates’s most populous city Dubai leads the 25-city forecast for 2023 with price growth expected to reach 13.5 percent. According to the company's wealth report for this year, European cities rank highly in 2023 and are led by Portugal’s capital Lisbon. Across the 25 cities tracked, Knight Frank’s global research network now expects prime prices to rise by 2.0 percent on average in 2023, down from the 2.7 percent the company had predicted six months ago.

Four European cities - Lisbon, Dublin, Madrid and Paris occupy six of the top ten rankings. Real estate has also been identified by the property gurus as a "resilient opportunity" for both direct and indirect investment. One in five ultra-high net worth individuals (UHNWIs) plan to invest directly in 2023, in line with 20 percent last year, confirming that the "real estate sector continues to be a safe haven in times of uncertainty".

In the 23 cities of the world analysed, Lisbon stood out as the fifth cheapest city to buy property albeit it is one of the cities with the smallest houses.

"A substantial shift in portfolio strategy, with real estate playing a very important role" is anticipated with 68 percent of UHNWIs expecting to see their investments increase in 2023, noted  Liam Bailey, Knight Frank’s Global Head of Research. "The pressure felt on the property sector due to rising interest rates has created a window for private capital - especially as we enter this new market phase with historic lows in terms of luxury property stock in the residential and commercial markets," he observed.

Meantime, albeit buying a house in Portugal is getting more expensive, a ranking by British insurer CIA Landlords, ranks Lisbon, the city where expats also claim to be happiest, as one of the cities where the price of the square metre (m2) to buy a house is the cheapest. The Rugby-based Insurer analysed the average size of the houses in thirty of the most populated cities in the UK, comparing this data on a global scale, namely the cost of buying a house by average size. And in the 23 cities of the world studied, Lisbon stood out as the fifth cheapest city to buy property albeit it is one of the cities with the smallest houses.

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