Lisbon Will Lead Prime Residential Price Growth In 2026

Savills places the Portuguese capital among the five global markets with the highest appreciation potential in 2026, alongside Seoul, Tokyo, Madrid and Cape Town, all with forecast growth above 4%.

The value of luxury residential properties continued to rise globally in 2025, with an average increase of 1.8% across the 30 cities analysed in Savills’ Prime Residential World Cities report.

In the second half of the year, price growth outpaced rental growth for the first time since 2021, marking a break with the pattern of recent years.

For 2026, Savills forecasts average growth of 1.3% in prime residential values, in a context still marked by caution and constrained supply. Five cities stand out: Seoul, Tokyo, Madrid, Lisbon and Cape Town, all with expected capital value growth above 4%.

In markets such as New York, London, Paris, Dubai or Sydney, growth is expected to be more moderate, often below 2%.

Lisbon In The Spotlight

In Lisbon, luxury residential property values rose 4.4% in 2025, with Savills anticipating a further increase of between 4% and 5.9% in 2026. The Portuguese capital is part of a select group of markets that combine quality of life, consistent international demand and limited supply in this segment. These factors support price growth, now at a more balanced pace than in previous years.

“Lisbon remains one of the most resilient prime residential markets in Europe, with a demand base that weathers more volatile cycles,” says Rita Bueri, Head of Residential Lisbon at Savills.

“We are seeing a more balanced market, with demanding buyers and limited quality supply, which continues to support price growth in this segment.”

Other Markets In Focus

The report highlights contrasting dynamics across markets, with some maintaining strong growth and others already entering a more corrective phase. In Seoul, prime values rose 14.3% in 2025 and are expected to increase by a further 6% to 7.9% in 2026, in a context of tight land constraints and scarce available stock.

Tokyo, which recorded a 30% rise last year, remains a market under intense pressure, with limited quality supply and very active demand, raising questions over the sustainability of this pace of growth.

Madrid joins Lisbon in the group of cities with forecast growth between 4% and 5.9%, supported by both domestic and international demand and a shortage of prime product in the city centre.

In markets such as Rome, Athens or Paris, the adjustment of recent years is now giving way to a gradual recovery, still with limited availability in the most central segments. In US cities such as New York, Los Angeles or San Francisco, growth is expected to be more moderate, capped by high prices and financing conditions.

In the Middle East, Dubai recorded a 3.6% increase in the second half of 2025 and 11.2% over the full year, with forecasts pointing to more contained growth of around 1.9% in 2026.

In Asia, the main Chinese cities are expected to see values fall between -2% and -3.9% in 2026, amid weaker demand and demographic challenges, while Hong Kong is beginning to show signs of stabilisation, with forecasts of 2% to 3.9% growth this year.

In the conclusion of the report, Kelcie Sellers, Associate Director, World Research at Savills, states:

“Chronically limited supply, international capital flows and sustained demand for global cities – particularly those offering strong lifestyle appeal and fiscal advantages – will continue to drive growth in prime residential markets worldwide.”