For quite some time now, PwC and the Urban Land Institute release an annual report about the Emerging Trends in Real Estate in Europe for the current year and beyond.
In the 2019 edition of the report, Lisbon emerges as the number 1 choice for the overall prospects. Rising 10 places in the ranking since the last edition, the report justifies that Lisbon’s position as derived of a shifting of attention to smaller and dynamic cities, which they call the “rising stars”.
As one of the interviewees states, there is a “whole second tier of cities that win on a number of different measures”, which is the case of Lisbon. Distinguished by its quality of life and “positive” leadership, the capital is growing, as is Portugal’s economy, and it’s becoming an international destination renowned all over Europe.
Also, Lisbon is definitely a trend right now. As one of the interviewees refers, “Everyone is talking about Lisbon now”, as it’s still relatively cheap compared to other cities, and offers outsize returns. That is why it’s attracting so many corporate investors looking to expand.Although the surveyed state the city’s residential boom as an issue to find office spaces, they see here an opportunity to do “speculative office development or refurbishment”.
Another relevant change is the diversity of capital going on in Lisbon right now: “there are a lot of Non-Performing Loans being sold, so you’ve got hedge funds and more opportunistic players as well as the core”.
Being an increasingly competitive market, Lisbon is also benefiting from Barcelona’s fall due to Catalonia’s independence crisis, with some investors already thinking about switching their capital to Portugal.
Analyzing real estate finances, capital markets, property sectors and other issues, this report gives pretty useful and reasoned insights about the European real estate markets, confirming what we already knew: Lisbon is more and more an important player, not only as a tourist destination, but as a growing investment market.