Although 14 cities have recorded price drops in the last three months, 57% of cities show the opposite behaviour. Dubai leads the annual growth and Lisbon is also in the top 10.

Growth in luxury home prices increased in the second quarter of 2023 in the main urban markets, according to the report from real estate agency Knight Frank, which since 2021 has been a partner of the Portuguese Quintela+Penalva and reported by idealista.

The study says that “average annual growth of 1.5% remains modest and well below the recent peak of 10.2% seen in the last quarter of 2021, but is the strongest growth rate since the third quarter of 2022”. Furthermore, and in a general analysis, “57% of markets registered an increase in prices in the last three months and 59% in the last 12 months”.

Luxury residential markets

In terms of 12-month growth, Lisbon (4.7%) is in the top 10 of the fastest-growing luxury residential markets, which continues to be led by Dubai (48.8%). The emirate maintains its top position in the rankings for the eighth consecutive quarter - prices in Dubai have risen 225% since reaching a low in the third quarter of 2020.

Tokyo (26.2%) and Manila (19.9%) occupy the second and third positions, respectively, in the annual growth table. Miami, Shanghai, Mumbai, Madrid and Nairobi also precede the Portuguese capital.

Francisco Quintela, founding partner of Quintela + Penalva said: “The luxury market is a relatively new market in Portugal, but with enormous demand. The consolidation of this market niche has been supported, mainly, by investment from foreign clients, but also by Portuguese clients. In this sense, the so-called luxury market has potential growth in the coming years”.