Living in Lisbon

What to keep in mind before buying a house in Lisbon

What to keep in mind before buying a house in Lisbon

Search for opportunities outside of the central neighborhoods

First of all, it’s mandatory that you clarify your purpose: invest in real estate or acquire a permanent residence?

There are many investors that come to Lisbon with areas like Bairro Alto and Príncipe Real in mind, without taking into consideration that purchasing a property in other neighborhoods more distant from the center can mean finding lower prices. For example, a 3-bedroom apartment in Benfica can provide higher yields than a studio or 1-bedroom in Bairro Alto.

Avoid proximity to hospitals or the airport

Every potential buyer is seduced by the idea of being close to lots of commerce, transports, schools, supermarkets, etc. However, it is recommended to avoid residential areas that are too close to hospitals, since their ambulances make lots of noise at all hours.

It is also not recommended to acquire a house near Humberto Delgado International Airport, which is just about 8 km from the historic center.

Some residents in the areas of Campo de Ourique, Entrecampos, Cidade Universitária and Campo Grande recurrently complain about the noise caused by the aircraft landing in Lisbon.

Look for properties in buildings that need rehabilitation

In Lisbon, there is still a wide range of properties that need renovations. Several times you can get a price up to 20% lower on the property value by the only reason of not being in great condition. On the other hand, a remodeled house in the city can cost you up to 20% more than the average market prices.

Every buyer wants a new and modern house as soon as possible, which, in the center of Lisbon, has a high cost. That way, we recommend that you consider recovering a house of your choice.

There are several renovation companies that practice competitive prices to perform that kind of work, as Get Things Done.

Avoid the city center if you want to invest in local accommodation

Some areas of the city are too crowded with properties for local accommodation. Neighborhoods like Bairro Alto, Baixa and Príncipe Real are great examples of areas where there’s almost no offer for long-term rentals.

That’s why Lisbon’s City Hall decided, back in 2018, to suspend permits for new local accommodation units in 5 historical neighborhoods, namely, Castelo, Alfama, Mouraria, Bairro Alto and Madragoa, aiming to protect the existing housing options and encourage the boost in tourism to expand to other zones like Praça de Espanha, Campo Grande, Paço do Lumiar, Pontinha and Belém.

The cheaper Lisbon parishes are Marvila, Beato and Olivais

Once areas that were abandoned and unwanted, with the Expo 98 things started to change around here, resulting from huge investments from the State and the European Union.

Lots of potential buyers or investors ended up not considering those areas, where are located some of the cheapest properties in Lisbon. For many, Beato is considered the future of the city, with the example of its most recent project called Hub Criativo do Beato, where companies like Web Summit, Mercedes-Benz, the Super Bock Group, Factory Berlin and Startup Lisboa are installed.

It is also felt a new dynamic in Marvila, where now Portuguese and foreigners live and work. Normally there are small street markets and fairs happening here, art galleries, startups, craft beer factories and great restaurants.

Marvila has enormous potential, being just 10 minutes from the city center, next to the Tagus river, with lots of buildings for rehabilitation and full of opportunities for new constructions. On the other hand, there’s Olivais, a neighborhood that is close to the Airport and the Expo area.

If you really want to buy a brand-new house, according to Statistics Portugal, the cheapest parishes are Lumiar and Carnide, with prices per square meter being lower than in second-hand houses.

Besides all our recommendations, we advise you to always get in touch with a professional property consultant you trust. Talk to us and fulfill your dream of having a property in the Portuguese capital!

1 thought on “What to keep in mind before buying a house in Lisbon”

Leave a Reply

Your email address will not be published. Required fields are marked *