Lisbon is currently so popular that some buyers are offering over the asking price for some property, just so that they can secure a property.
However, property hasn’t always been so popular in Lisbon. This demand began happening around 2012 when previous rent controls became more relaxed. Additionally, European buyers had access to residence permits. Significantly from china. Moreover, the introduction of a tax friendly regime, and the conversion of hundreds of buildings into rental apartments and hotels has also helped fuel this growth.
Because it has become so difficult to source property in Lisbon, investors are now resorting to looking at property and land outside the city.
Jose Cardoso, head of vanguard properties, admits that there are very few available buildings for sale in the centre of Lisbon currently. And investors are now having to look at plots of land outside the city.
In the first half of 2017, property prices in Lisbon increased 26%. However, looking at the same period the previous year, number of deals fell by 34%. Which is an indicator of a shortage of housing stock. It is expected that foreign investment of 3 billion euros will bepaid in. Which is an increase of 1.3 billion euros since 2016. According to CBRE Group Inc.
The city is experiencing lots of interest from a range of celebrities, including Madonna. And this can be problematic because Lisbon has a smaller housing stock compared to cities such as Madrid or Paris. Particular interest has been made to an area of the city called Avenida da Liberdade. This is an exclusive boulevard featuring ornate sidewalks, gardens and luxury shops. And is comparable to that of the Champs-Elysees.
Because housing prices in Lisbon continue to rise, and housing stock availability is poor, existing residents are being forced to move out of the city centre to affordable housing elsewhere.
However, this is starting to change. Lisbon city council are planning on building affordable housing for those that cannot afford to buy property in the city centre. Specifically, around 7,000 new homes will be built. And the monthly rent will be between 250 and 450 Euros.
There is no doubt that the property market in Lisbon is booming. People moving into the city are paying over the odds for property just to secure it. Property prices are now so expensive that existing residents cannot afford to live there. And even celebrities such as Madonna are finding it difficult to find property in the city. High demand is thanks to a number of factors. Such as increased interest from China, introduction of tax free schemes and conversion of existing buildings to hotels and rental properties. Fortunately, for those that can no longer afford to buy in the city, the council are introducing around 7,000 affordable new homes. Monthly rent expecting to be around 250 and 450 Euros.
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