Lisbon’s cheap property prices will only last for so long as the city continues to attract record levels of overseas investment.
Arthur Moreno, founding partner of Portuguese developer Stone Capital, said that as interest in the city increases, he predicts prime central prices will rise by between 5% and 10% over the next five years.
He said: “The average price right now for prime residential in the city centre is between €4,000 and €8,000 per square metre. That will go up.
“There is a big increase in the number of people want to invest and buy apartments in Lisbon. It is up and coming and has strong outside potential. Short-term rental yields are between 5% and 7%. And long term they are between 3% and 5%.
“Lisbon’s fundamentals remain very strong.”