Lisbon's prime residential property market surged by 4.2% in H1 2024, outpacing the global average of 0.8% growth, according to Savills' Prime Residential World Cities report.
Sixty percent of the 30 cities studied saw property values rise, while seven cities experienced price drops of less than 1%, suggesting potential for growth in H2. Nevertheless, some buyers are adopting a wait-and-see approach due to uncertainty about future interest rate movements.
Southern European cities dominated prime residential property value growth, with Lisbon leading the pack with a 4.2% increase, followed closely by Amsterdam, Madrid, and Athens, all surpassing the 3% mark.
Of the 13 EMEA markets analyzed, only Berlin and London saw slight declines in prime property values. Berlin's market experienced a price drop of 0.8% due to an oversupply of prime properties in certain areas, while London's decrease was more modest at 0.1%.
American buyers are increasingly targeting European prime residential properties, particularly in southern European countries, due to a combination of limited supply, soaring prices, a strong dollar, and the allure of these cities' lifestyles.
Alexandra Portugal Gomes, Head of Research at Savills, commented: ‘Lisbon continues to have a high demand for prime properties, mainly from international buyers, which has led to their appreciation. The fact that the country’s capital was the city where prime property appreciated the most in the first half of 2024 shows that it is still a very attractive market and everything indicates that demand will continue to be very strong until the end of the year.’
Kelcie Sellers, associate director, Savills World Research, added: ‘Looking ahead, we forecast an average value growth of 0.5% for the second half of the year, which would bring the total growth for 2024 to 1.3%. The current gap between supply and demand for high-end residential products is projected to drive price growth in European cities such as Amsterdam, Lisbon and Barcelona, where growth of between 2% and 3.9% is expected in the second half of 2024.’
