Up, up and away! Lisbon ranks 7th in global house price growth
Up, up and away! Lisbon ranks 7th in global house price growth
According to Diário de Notícias (DI), house prices in major global cities continued to rise in 2025. Based on Knight Frank’s analysis of 44 cities during the first four months of the year, Lisbon ranked seventh for price appreciation.
The "Prime Global Cities Index", published by London-based real estate consultancy Knight Frank with offices across five continents, shows that prices in these cities increased by an average of 2.8% in the first quarter of 2025. Although slightly slower than the fourth quarter of 2024, strong growth was still observed in several Asian and Middle Eastern cities.
Asia-Pacific and the Middle East continue to lead. Seoul saw house price growth reach as high as 18.4%, driven mainly by wealth accumulation and active institutional investment in the luxury residential market. Tokyo benefited from expectations of a stronger yen, attracting large numbers of overseas buyers and boosting housing demand.
Dubai, which experienced a significant slowdown in 2024, has seen double-digit housing price growth return this year. Meanwhile, major Chinese cities such as Guangzhou and Beijing are facing challenges in sustaining growth.
Stockholm and Lisbon show strongest performance
European markets showed mixed results, with Stockholm and Lisbon standing out. In 2024, Lisbon house prices rose by 5.7% surpassing Madrid (5.5%), Dublin (4.7%), and Zurich (4.3%) to become Europe’s top-performing city in annual growth.
Knight Frank’s analysis indicates that interest rate trends remain a key factor influencing house prices. Despite declining inflation in many countries, U.S. monetary policy may introduce market volatility. If future rate-cut timing remains unclear, house prices in most markets may struggle to rise significantly.
Portugal’s market moves independently, driven by multiple factors
Carlos Penalva, founding partner of Quintela + Penalva l Knight Frank, notes that Portugal’s property market is moving differently from other countries. Lower interest rates, geopolitical instability, and capital shifting from financial assets to real estate have been the main drivers behind rising prices. Investor interest in real estate is also growing. The market currently faces supply shortages; if interest rates fall further and demand remains robust, buyer confidence is expected to strengthen, supporting stable and sustained price increases in 2025.