Lisbon among Europe’s most resilient prime residential markets, with 4.5% growth forecast for 2026

A new study by Knight Frank ranks Lisbon among the top seven global cities for performance in the luxury residential sector, highlighting international demand and market resilience.

Lisbon’s prime residential market continues to establish itself as one of the strongest in Europe. According to the latest Global Residential Signals report by Knight Frank—Quintela + Penalva’s partner in Portugal—luxury residential prices in the Portuguese capital are projected to rise by 4.5% in 2026, placing Lisbon seventh among the 20 major global cities analysed.

For 2027, the consultancy forecasts positive—albeit more moderate—growth of 3.5%, reflecting market stabilisation following a period of strong expansion.

At the European level, Lisbon ranks among the most dynamic markets—trailing only Milan and on par with Madrid—thereby outperforming traditionally established destinations such as Paris, London, Zurich, and Frankfurt.

According to Carlos Penalva, founding partner of Quintela + Penalva | Knight Frank, “international demand continues to play a decisive role in the performance of prime residential markets in Portugal, particularly in Lisbon and the Estoril Coast.”

The study concludes that none of the analysed cities anticipate a decline in demand from foreign buyers, reinforcing the appeal of key global destinations for high-value real estate investment.

“Lisbon’s position among the best-performing prime residential markets confirms the city’s growing international prominence as a destination for quality real estate investment.

The combination of limited supply, quality of life, and sustained interest from international buyers continues to drive value appreciation in this segment,” says Carlos Penalva.

Image: Lisbon-anastasiia-mitiushova-unsplash