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Lisbon in the top 10 of the best destinations to invest in 2020
21 November 2019 | Ana Tavares

Lisbon in ranked number 10 amongst the most attractive European cities for real estate investment in 2020, according to the latest Emerging Trends in Real Estate Europe 2020, compiled by PwC and ULI.


The Portuguese capital "dropped" from the top spot it had in 2019’s ranking, but it remains in the top 10. Paris leads the list, followed by Berlin (which kept the 2nd place), Frankfurt, London, Madrid, Amsterdam, Munich, Hamburg and Barcelona, in the 9th place.

In Lisbon, it’s the higher asset prices that dictate this drop in the ranking. But investors consider that several types of assets on all segments, including hotels, housing and even retail remain available.

The challenge is finding good buildings to invest in within the "core" office market. The interest from big insurance companies and German funds is increasing, and the market is more competitive, with yields of around 4%. The occupancy costs are still considered cheap when compared to other European cities.

The report also mentions the creation of SIGIs (Portuguese REITs) as another positive factor when it comes to the investors’ trust, along with the confirmation of the construction of the new airport. Along with that, the 1.6% GDP growth predictions for 2020 and the drop in unemployment in the country are factors which increase the investors’ trust.

In 2020, investors will generally look for cities which offer liquidity and connectivity, in a «changing environment» which is felt across Europe. Amongst the main worries from investors for 2020, are the stock availability (62%) and the increase in construction costs (67%).