But with a tendency to level ...
Demand is growing, both in Lisbon and in Oporto. Lisbon was recently ranked as the No. 1 city in Europe for investment in real estate, with the urban rehabilitation segment playing a key role in this classification. There is a whole movement of renewal, modernization and dynamism of these cities that is in progress. The phenomenon in Porto is more recent, but equally strong. And it will continue, even if a slowdown in the economy is confirmed.
Urban rehabilitation does not only occur in the central axes of the city of Lisbon, at this moment it is extending to the peripheries and prices will continue to rise but with a tendency to level. There is much interest in the acquisition of reconversion and rehabilitation buildings in practically the whole city and not only in the more central or historic areas.
Despite this positive scenario, however, there are three factors that are conditioning the market: The uncertainty of the time required to obtain licensing, new rules related to the rental market that are being successively applied by the government and the escalation of construction costs. All represent an increased risk for investors and are clearly being passed on in investment analyzes, especially in Lisbon.
There is still a huge demand for foreign buyers in this market, especially in the more central areas of cities as prices, the quality of supply and the characteristics of cities and the country continue to emerge. But there is also a growing demand from the Portuguese.
As for the price escalation in the cities of Lisbon and Porto, in general, will continue to grow, but with tendency to level.