Foreign investment in the housing market of the Lisbon Urban Regeneration Area (Lisbon ARU) slowed again in 2025, with a 12% reduction in the number of homes purchased compared to 2024. However, the capital invested remained “relatively stable”, supported by the rise in the average transaction value, according to Confidencial Imobiliário.
International investors purchased 1,390 residential properties in the Lisbon ARU (a territory covering all the city’s parishes except Lumiar, Santa Clara and Parque das Nações) last year, 180 fewer than in 2024, with the year seeing the lowest level of activity since 2017. Total investment, meanwhile, reached €879.5 million, 3% below the €906.5 million recorded in 2024.
According to Confidencial Imobiliário, market trends reveal a shift in the profile of international demand – although fewer assets are being purchased, foreign buyers continue to demonstrate strong financial capacity and a greater willingness to invest in higher-value assets. The average transaction value increased by 10%, rising to €631,800 in 2025 (compared to €575,600 in 2024).
Last year, Lisbon ARU attracted buyers from 64 different countries – the United States led in terms of the number of acquisitions, accounting for 16% of international transactions, followed by France and Brazil (both with 11%), the United Kingdom (7%), China (6%) and Germany (5%). In terms of capital invested, Americans also took the lead, accounting for 20% of foreign investment in Lisbon’s ARU. They were followed by Brazil (12%), France (11%), the United Kingdom (8%), Germany (5%) and China (4%).
Geographical preferences were evident in the parishes of Estrela, Arroios, Misericórdia, Santo Antónioand Santa Maria Maior, which accounted for 10% and 12% of purchases made by foreign buyers. However, a distinct trend was observed throughout the year: Santa Maria Maior and Estrela stood out with growth of 17% and 10%, respectively. Misericórdia and Santo António maintained stable levels of demand, while Arroios recorded a 13% drop in purchases by foreign investors.
Confidencial Imobiliário also noted that the slowdown in foreign demand contrasted “with the dynamism of the domestic segment”. Last year, domestic buyers increased the number of residential purchases in the Lisbon ARU by 5%, totalling 4,540 transactions. Conversely, the relative share of foreign investors fell from 27% to 23%.
Despite these contrasting trends, the market structure in terms of capital remained stable: 70% of investment came from domestic sources and 30% from abroad. This result is due to the reduction in the average amount invested by Portuguese buyers, which stood at €444,200 per transaction, 11% less than in 2024and around 30% below the average investment amount of international investors.
In 2025, the residential market in the Lisbon ARU saw a stabilisation in the total number of transactions(+1%), accompanied by total investment of €2,897.6 million (a figure representing a slight decrease of 3% compared with the previous year).
