Lisbon, the capital of Portugal, offers a lively lifestyle that mixes its rich history with modern conveniences. Savills’ Prime Residential Index: World Cities – Rents and Yields (August 2024) ranked Lisbon among the top three global cities for rental growth in H1 2024, with a 7.5% increase.
This popularity partly stems from its former golden visa program, which attracted foreign investment and created a great environment for digital nomads. Lisbon has become a hub for future-oriented industries, thanks to its strong infrastructure, innovative spirit, and vibrant tech scene. At the same time, it retains a rich cultural heritage with historic architecture, delicious cuisine, and a thriving arts scene that draws people from all over the world.
This unique combination of old and new, along with its appealing lifestyle and affordable living, makes Lisbon an ideal destination for both work and leisure.
History of Lisbon
Lisbon, once a remote outpost, has evolved into a vibrant capital through centuries of cultural, political, and economic changes. Initially inhabited by Celtic tribes, the Romans developed it into a key trading port named Olisipo in the second century BC. Under Moorish rule in the eighth century AD, Lisbon flourished as a trade and cultural centre. The Christian reconquest in 1147 made Lisbon Portugal’s capital and a major maritime power during the Age of Discoveries.
The 1755 earthquake led to significant urban planning changes, creating the iconic Baixa grid layout under the Marquis of Pombal. The Carnation Revolution in 1974 ushered in democracy and joining the European Community in 1986 spurred redevelopment. Despite setbacks from the 2008 financial crisis, Lisbon has thrived since the late 2010s with projects like Metro expansion and a new cruise terminal.
Today, Lisbon blends history and modernity with charming neighbourhoods, cultural attractions, and a thriving arts scene, offering a diverse experience for residents and tourists.
Transportation
The Lisbon Airport, also known as Humberto Delgado Airport, is conveniently located just seven kilometres from the city centre. Travellers can easily reach their destinations by taking advantage of the metro train system, which covers most parts of the city and provides a quick and efficient way to navigate through Lisbon’s neighbourhoods. Popular attractions like Baixa-Chiado, Rossio Square, and Parque das Nações are easily accessible via the metro network.
In addition to its metro system, Lisbon is also known for being a walkable city. Many areas within the city centre are pedestrian-friendly, with wide sidewalks and streets lined with shops and cafes. Exploring on foot allows visitors to fully immerse themselves in the vibrant atmosphere of Lisbon while discovering hidden gems along the way.
Education
Lisbon is also for its thriving educational institutions. Lisbon’s renowned universities and colleges attract students from around the world. The University of Lisbon, for instance, is one of the largest and oldest institutions in Portugal, offering a wide range of undergraduate and postgraduate programmes across various disciplines. Another prominent institution is the Nova University of Lisbon, known for its excellence in research and innovation. For those geared towards creativity, IADE – Creative University offers a wide range of creative courses and programmes.
In addition to these universities, Lisbon also offers a variety of vocational schools and professional training centres that cater to specific industries and skill sets. These institutions provide practical education and hands-on experience to prepare students for their chosen careers.
Furthermore, the city’s education system extends beyond traditional academic settings. Lisbon is home to numerous language schools that offer courses in Portuguese as a second language, allowing international students to immerse themselves in the local culture while acquiring language skills.
Opportunity in Lisbon
Lisbon is known for being a highly attractive location for companies, investors, and tourists alike. The city’s flourishing technology, media, and financial sectors, combined with its thriving tourism industry, make a substantial contribution to Portugal’s overall GDP. Businesses, including industry giants like Google, are being drawn to the city due to the presence of start-ups, co-working spaces, and nearshoring services.
Our first developments have completed, are fully tenanted, and have seen good rental yields up to 5.5%. Bela Vista, a beautiful development that offers breath-taking panoramic views across Lisbon and the Tagus River, completed in 2022. It consists of studio, one-, and two-bedroom units, with achieved vs. forecasted rent at 102%, meaning our aggregated rents have exceeded forecasts by 2%. The current average gross yield is 4.70%.
In addition, we manage all eight units in The Carvalho development, located in the beautiful neighbourhood of Santa Catarina. These units are split into studios and one-bedroom apartments. The Carvalho is conveniently situated just a one-minute walk from the nearest tram stop, a nine-minute walk from the Santos train station, and a ten-minute walk from the Baixa-Chiado Metro Station.
For more information about Bela Vista, The Carvalho or our other Portuguese developments, get in touch with us today.
