Lisbon real estate market — prices, rental yield and trend

• Average price: $5,931 / m²
• Gross rental yield: 3.95%
• 12-month price change (USD): 2%
• Net rental yield: 3.56%
• Transaction cost: 11.2%
• Bubble-risk band: elevated
• Price basis: local-market average

Residential property in Lisbon averages $5,931 per square metre. In dollar terms the market has barely moved over the last twelve months (+2%). That makes it the 51st most expensive of the 264 markets in the set.

What a buyer pays in Lisbon

The $5,931 figure is a local-market average across all residential property types: a flat in a prime district sits well above it, an older unit on the edge of the market well below. Buying costs — transfer tax or stamp duty, notary, registration and agency — come to about 11.2% of the price here. On a 100 m² apartment at the average price that is roughly $66,427 on top of the $593,100 purchase price. That is above the 9.5% median across the set — the entry cost is part of the investment case here. Of that, the transfer tax alone is 1–8% depending on the buyer and the property; the rest is notary, registration and agency fees. Against the Portugal national average of $2,430, Lisbon carries a 144.1% premium — the gap between this market and the country as a whole. Among the other Portugal markets we track, Sintra at $3,259 is 82% cheaper, and Braga (city) at $2,354 is 152% cheaper.

What it earns

A square metre lets for about $19.5 a month. Against a purchase price of $5,931 per square metre that is 4% gross, before tax. Both figures come from the same source and the same period, so you can check the arithmetic yourself. It ranks 247th of 311 markets by gross yield. Rental income is taxed at 10–25% — the rate is not a single number here. That is the difference between 3% and 3.6% net on the same property. The 3.6% net figure we publish uses 10%. On the way out there is a third tax: a non-resident seller pays 6.3–24% on the gain, depending on how long the property was held and who is selling.

How the tax works. 10% under the reduced rate for long-term residential lets (EBF art. 45-C, Decree-Law 97/2026, in force from 1 January 2026 to the end of 2029), which applies only while the rent is at or below €2,300 a month; above that threshold the standard 25% non-resident rate applies (CIRS art. 72). There is no flat expense allowance, so the statutory rate is the effective rate. The 10–25% band reflects that threshold, and the reduced rate has not yet been confirmed for non-residents by a tax-authority circular. Source: diariodarepublica.pt. At Lisbon rent levels the €2,300 threshold is easily exceeded, so 25% is the more likely outcome.

Where the price sits against its own history

Prices are +23.4% over five years and +134.2% over ten in local terms. Today’s level sits 18.6% above the city’s own long-run trend. A gap that size does not have to close, but it is the number to watch. Glopra’s bubble-risk score for Lisbon is 68 out of 100 — elevated risk. Of the 65 markets scored, 19 read higher. It combines the deviation from trend, price-to-income and the pace of recent growth — a warning light, not a forecast.

Lisbon house price index, 2016–2026 (2016 = 100)

Rebased to 100 in 2016, the index stands at 222.9 in 2026. The series is in local currency, and the twelve-month numbers above show how much of that a dollar buyer actually keeps.

Who can buy in Lisbon

Freehold, no restrictions. That is the rule a foreign buyer meets first, not legal advice — check the current position locally before you commit.

How this figure is built

The price figure for Lisbon is built from recorded transaction prices. It was last refreshed on 2026-11-12. We rate our confidence in this market’s data high: the underlying series is official and current. We recompute every market the same way, which is what lets Lisbon be compared with a country average or another city.

Sources: idealista.pt · globalpropertyguide.com · airbtics.com. Snapshot: 2026-11-12.