Lisbon’s prime residential property market is set to weather the crisis caused by Covid-19 with an upward bounce.
Analysis by property specialists Knight Frank identifies Lisbon along with Monaco, Vienna and Shanghai as the “only four major prime residential markets set to see growth throughout the remainder of 2020 as the impact of Covid-19 takes its toll on luxury residential property markets around the world”.
Knight Frank’s research was based on projections for demand and supply, the impact of Covid-19 in the different markets of cities analysed and “the varying government stimulus measures announced”.
Not mentioned in the report was the fact that due to the pandemic, Portuguese government plans to suspend its Golden Visa programme in Lisbon have been put on hold. The programme has proved a magnet to buyers from all over the world since 2012, and can now continue to reel investors in.
As Knight Frank observes, however, “the scale of global economic uncertainty is unprecedented and therefore putting an exact figure on forecasts is challenging”.
The study chose ‘four price bands’ in which it placed the 20 cities under analysis: strong price growth (+5% or more), low price growth (0% to 5%), flat or low price falls (0% to -5%) and strong price falls (-5% or less).
Pre-Covid, Knight Frank was buoyant for various prime markets, including Paris, Geneva, Berlin, Miami and Sydney, “but unsurprisingly Covid-19 has put a halt to all that”, Liam Bailey, the company’s global head of research explains.
Of the 20 cities Knight Frank analysed, 16 are now likely to see prime price declines through the rest of the year, “with only a handful” (Lisbon being one) “avoiding a fall into negative territory – either because of historic supply shortages or because transactions were able to continue during lockdown and these measures are already being eased,” he said.
This is also seen as good news for the Algarve, according to estate agents the Algarve Resident has been in touch with who expect this trend to reflect on the southern property market which has maintained a high level of interest in spite of the pandemic.