14 15

Sources: JLL, Colliers, Statistics Portugal, Oxford Economics

International demand is strengthening with foreign buyers on the rise. Since 2015 international demand has accounted for a quarter of Lisbon s residential market, making the city one of Europe s most attractive and popular locations for international investors.

With domestic wealth increasing, the number of Portuguese buyers actively purchasing property is on the up, helped by the low unemployment (currently at a 15 year low) and the fact the Portuguese economy has surpassed the Eurozones's average GDP for the last four years.

Tourism within the city is also improving, with the number of international visitors reaching 4.5 million in 2018, providing a source of rental demand for those seeking investment properties. There is a noticeable lack of rental stock which is driving the investment sector.

Sources: JLL, SIR and CBRE Research

Despite experiencing increases in development, Lisbon's residential property supply remains unable to satisfy the city's growing demand.

SUPPLY AND DEMAND -

„ Lisbon new build completions

SALES MARKET -

SALES AND RENTAL MARKETSUPPLY AND DEMAND

Lisbon is seeing significant capital growth, which is likely to continue in the coming years.

„ Lisbon still remains one of the most affordable European capitals

Lisbon s residential rental prices saw remarkable growth between 2012-2017, which is expected to continue due to the lack of rental stock.

+151%

increase in transactions between

2012-2017

capital appreciation forecast between

2018-2022

capital appreciation

forecast for 2019

+19.2% +3.84%

+15.4%

increase in rental prices in 2017

+45.1%

rise in rental prices between

2013-2017

forecast rental growth over the

next 5 years

long-term yields forecast, short-

term yields forecast to be

circa 5-6%

+27.3% 4%

RENTAL MARKET -

„ Average sales price for new houses in Lisbon

No. of new-build completions (RHS)