What does €1 million buy in Lisbon’s property market these days?

The number of square meters that can be bought in Lisbon with €1 million euros has decreased over the past five years by 14%, from 93 square meters to 80.

In the case of Portugal, falling interest rates, greater international geopolitical instability, and the transfer of financial assets to real assets explain the price increases and the demand for investment in real estate according to Carlos Penalva of Portuguese firm Quintela & Penalva

Carlos Penalva also notes that the 20th edition of Knight Frank’s annual The Wealth Report allows the conclusion to be drawn that “we are facing a scenario of strong price growth in most global real estate markets and, in Portugal in particular.

The scarcity of product, combined with high demand, should reinforce buyer confidence and continue to drive prices in this market segment.”

Knight Frank, a leading independent global real estate consultancy, of which the Portuguese firm Quintela & Penalva has been an associate since 2021, presented The 20th edition of the Wealth Report on Monday.

The report revealed the results of the International Prime Residential Real Estate Index (PIRI 100), which tracks price performance in 100 global luxury housing markets. The report indicates an average increase of 3.2% in prime prices in 2025, outperforming traditional residential markets for the second consecutive year.

According to the 2026 edition of The Wealth Report, 73 out of 100 prime markets registered price growth in 2025. Tokyo leads globally with a 58.5% increase in the value of new luxury apartments.

Dubai saw a 25.1% price increase, maintaining its position in 2025 as the world’s most active market for properties above $10 million, with 500 ultra-prime sales. The Middle East (+9.4%) was the best performing region; Latin America/Caribbean (+4.7%), Asia-Pacific (+3.6%) and Europe (+3.3%) also registered consistent gains.

Conversely, North America registered a decline of -0.9%, driven by price drops in Canada.

Knight Frank’s PIRI indicator further defines the amount of prime square meters that can be purchased with $1 million in the world’s leading markets. Between 2020 and 2025, the purchasing power of $1 million decreased sharply in many prime markets. The most significant drops were recorded in Dubai (-66%), Tokyo (-41%), Miami (-40%), and Los Angeles (-28%), reflecting the strong appreciation of these luxury markets. Geneva, Singapore, and Milan also recorded significant reductions.

However, some markets bucked this trend: London (+7%) and Melbourne (+4%) showed a slight improvement in value, while Hong Kong remained stable.

Overall, the data highlights how rapid wealth growth, supply shortages, and global investor demand have reduced dollar purchasing power in many of the world’s leading high-end residential markets.

Ultra-high mobility is transforming purchasing patterns, with a growing number of high-net-worth individuals (UHNWI) spending less than 90 days a year in traditional city centers, driving demand for ultra-prime rentals.

Source: Frank Knight/Penalva; Credits: Concoran Atlantic (Portugal)