According to idealista news, the global luxury housing market continues to grow, with average annual prices increasing by 2.1% across the 46 markets analysed by the Knight Frank Prime Global Cities Index in the 12 months to September.

The city of Lisbon appears in 13th place in the ranking of world cities and in third place when we look at European cities, preceded only by Madrid (in 5th place) and Stockholm (in 6th position).

According to the most recent report by the consultancy, which since 2021 has been a partner of the Portuguese Quintela+Penalva, 67% of the cities studied show price growth in one year.

"Average price growth in major global urban markets picked up in the third quarter of 2023. The average growth rate was 2.1% for the 12-month period through September. Compared to the second quarter, the increase was 1.6% and, by comparison, the growth recorded in the first quarter was 0.2%," the statement said.

"The recovery in annual prices confirms that global real estate markets are showing signs of stabilisation, despite the sharp increase in interest rates on mortgages," it said.

However, while 67% of markets recorded an increase in prices over the year, only 63% recorded an increase in the quarter, "which indicates some uncertainty, mainly due to the possibility of further interest rate hikes".

The current uncertainty about inflation and interest rate risk continues to influence the real estate market, including the luxury segment, which could limit price growth over the medium term.

"In Europe, Lisbon continues to be in the Champions League ranking in terms of the prime market, not only because of the growing quality of the offer, although scarce compared to demand, but also because of the attractiveness that our country has. The Government's recent measures on housing have created a climate of uncertainty and will certainly cause investors to cool down. However, the real estate market, namely the prime market, will continue to be attractive and a safe haven for those looking for our country as a safe destination with unique characteristics in Europe", comments Francisco Quintela, Partner at Quintela + Penalva l Knight Frank.