In 2024, rents asked by landlords to tenants in new rental contracts accelerated by 10.5% in the Portuguese capital, a growth, however, lower than that seen in the previous year (30%), according to data contained in the study “Prime Residential World Cities index”, by Savills.

The study concludes, for example, that 25 of the 30 cities monitored showed positive growth in rental values ​​throughout 2024, with rental values ​​increasing by 4.3%, on average, in all metropolises.

“The luxury property rental market in Lisbon is going through a period of lower growth in rent values, with a growth of 2.8% in the second half of 2024, showing signs of entering a period of stability in the face of increases pronounced levels observed in the past,” Savills said in a statement.

With increases in prime residential rent above 5%, for example, there are still the cities of Barcelona (Spain), Amsterdam (Netherlands), Madrid (Spain) and Athens (Greece).

Leading the ranking of increases is once again Dubai, which “continues to become increasingly stronger in its luxury rental market”, explains the consultancy. “With the surge in new residents from all continents, luxury rental values ​​are expected to increase by 23.5% in 2024, surpassing the 2016 market peak”.

Quoted in the note, Catarina Alves, Sales Manager at Savills, highlights that “Lisbon continues to record an increase in rental values ​​for luxury properties, although now at a slower pace after the peak recorded in 2023”.

“This trend is expected to continue in the prime market in 2025, given that the supply of premium properties remains stable and demand is expected to remain strong, both from national and international clients. Lisbon continues to be a highly sought-after city to live in due to the quality of life it offers, the good infrastructure, the range of health and education services, among others,” she comments.

Kelcie Sellers, Associate Director at Savills World Research, anticipates that many potential buyers will continue to turn to prime rental markets. “By 2025, high-end rental prices are expected to show a slight increase in the 30 cities covered by the World Cities Index, but this growth is likely to remain below the historical average. Dubai is expected to lead the rental growth rate in 2025, with an expected increase of more than 10%”.