Portugal luxury real estate investment is on the rise, with Lisbon’s luxury home rentals increasing by 10.5%. This growth reflects the city’s appeal and the lucrative opportunities available in the market. Discover what makes investing in Lisbon’s luxury properties a smart choice for discerning investors.

Luxury home rentals in Lisbon have seen a notable increase of 10.5%. As the global trend of rising rents for luxury residential properties continues, Lisbon is certainly not lagging behind. In 2024, landlords in the Portuguese capital have raised their asking rents for new rental contracts by 10.5%. While this growth is impressive, it pales in comparison to the staggering 30% increase observed in the previous year, according to the “Prime Residential World Cities Index” study conducted by Savills.

The study reveals that out of the 30 cities monitored, 25 exhibited positive growth in rental values throughout 2024, with an average increase of 4.3% across all major metropolises. Savills notes, “The luxury property rental market in Lisbon is currently experiencing a phase of moderated growth, with a more modest increase of 2.8% in the latter half of 2024. This suggests a potential stabilization after the pronounced increases seen in prior years.”

Cities such as Barcelona, Amsterdam, Madrid, and Athens are still witnessing prime residential rent hikes exceeding 5%. However, Dubai takes the crown once again, showcasing a robust luxury rental market. The consultancy explains, “With an influx of new residents from around the globe, luxury rental values in Dubai are projected to soar by 23.5% in 2024, surpassing the market peak of 2016.”

While Lisbon continues to record an uptick in rental values for luxury properties, the pace has notably slowed following the peak in 2023. This trend is anticipated to persist in the prime market through 2025, as the supply of premium properties remains stable and demand—both from domestic and international clients—continues to be strong. Lisbon remains a highly desirable city for living, thanks to its quality of life, excellent infrastructure, and a plethora of health and education services.

Looking ahead to 2025, high-end rental prices are expected to exhibit a slight increase across the 30 cities covered by the World Cities Index, although this growth is likely to remain below historical averages. Dubai is projected to lead the rental growth rate in 2025, with an anticipated increase of over 10%.