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Lisbon’s property market: 'sellers are kings'
30 Nov

A combination of high demand and limited availability is transforming the centre of the Portuguese capital into a property hotspot where “sellers are kings”, Bloomberg reports.

The last few years has seen a resurgence throughout Portugal’s property market with prices soaring to new heights.

The country’s capital, Lisbon, has been on the forefront of this growth and is currently one of the most expensive regions to buy a house in the country, along with Porto and the Algarve.

In fact, from 2012 to 2016, house prices in the capital have shot up by 35%. Furthermore, within the first six months of 2017, Lisbon’s historic centre historic saw an astonishing 26% increase in prices.

The sharp rise in prices has much to do with limited availability, which is forcing some buyers to bid above the asking price in order to secure the last available units in the city centre.“There are a very limited number of buildings located in the centre of Lisbonto purchase,” said Jose Cardoso Botelho, head of Vanguard Properties.

We’ve started looking for building plots on the outskirts of the city now, but it hasn’t been easy”.

As reported on Bloomberg, Vanguard Properties are real estate firm controlled by French-Swiss investor Claude Berda that’s bought 10 buildings in Lisbon since it began investing in the city last year.

Lisbon is comparatively small to other European cities like Madrid and London. As such, a resurgence in property demand quickly led to an undersupply.

Head of Portugal’s Real Estate Professionals and Brokers Association, Luis Lima said: “It’s the first time that Lisbon has a shortage of homes to satisfy investor demand.

“Home buyers need to realize it’s impossible for everyone to live in Avenida da Liberdade,” he said, referring to a boulevard in Lisbon lined with gardens, ornately tiled sidewalks and luxury shops that’s considered the local Champs-Elysees.

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