River view, houses 20% more expensive

Location is undoubtedly one of the most determining factors in the real estate market, and when it comes to Lisbon, the view of the Tagus River is one of the most coveted attributes by buyers and investors. But what is behind this significant appreciation, who drives this demand, and above all, is it worth investing? Let's explore all angles of this question.

Why are views of the Tagus River so valued?

Lisbon's relationship with the Tagus River is historical and symbolic. The river is not just a landscape; it is an element that defines the city's identity. The beauty of the views, especially at sunrise or sunset, offers an almost unique experience. Real estate sector studies show that properties with panoramic views, especially of bodies of water, have a market appreciation between 10% and 30%, depending on the location and exclusivity of the view. In the case of Lisbon, the average increase is around 20% for properties that offer direct views of the Tagus River.

Practical example:

A 120m² apartment in the Graça or Alfama area, without a view of the Tagus River, can be valued at around €500,000. With a view of the river, the same property can reach values close to €600,000, or even surpass them, depending on other factors such as finishes and building infrastructure.

Who drives the demand?

• International market: Lisbon has become one of the most sought-after European cities by foreign investors. French, British, American, and Brazilian citizens lead the purchases of luxury properties in Portugal. The view of the Tagus River is often a decisive factor for this audience, which seeks exclusivity and a premium lifestyle.
• Programs like the Golden Visas: These programs, which have attracted thousands of investors to Portugal in recent years, have contributed to pushing prices in valued areas, such as Lisbon's riverside.
• Luxury segment: Buyers who prioritize emblematic locations and are willing to pay more for unique features, such as river views, are responsible for a good part of this appreciation.
• Limited supply: Lisbon's geography and architecture naturally create a restricted supply of properties with riverside views, increasing demand and consequently, prices.

Is it worth investing?

From an investment standpoint, the answer tends to be affirmative, but with some nuances. Here's why:

• Continuous appreciation: The combination of limited supply, high demand, and the attractiveness of Lisbon in the international market suggests that properties overlooking the Tagus River will continue to appreciate. In the last 10 years, property prices in Lisbon have risen by an average of about 85%, with prime areas experiencing even greater increases.
• Rental income: Properties with river views are highly sought after, both for long-term rentals and for the tourist segment (although it is necessary to consider the restrictions on local accommodation in some areas).
• Investment security: Lisbon is seen as a stable and attractive city to live and work in. Furthermore, the prospects for appreciation in the real estate market remain positive, although at a more moderate pace in the coming years.

Tip: Those looking to invest should evaluate the specific area and the potential for appreciation. Areas like Cais do Sodré, Santos, and Parque das Nações offer a balance between views, infrastructure, and accessibility.

The future of properties overlooking the Tagus River

The Lisbon real estate market may face challenges related to:

• Government regulation: Policies to curb real estate speculation may impact the pace of appreciation, but properties with exclusive features, such as views of the Tagus River, tend to be less affected.
• Sustainability: The increasing demand for sustainable properties may influence the type of construction and renovation of buildings in riverside areas.

However, Lisbon's attractiveness as a destination for living and investment is unlikely to diminish. The ongoing redevelopment of areas like Baixa and the Tagus Riverside will continue to drive the appreciation of these properties.

Conclusion

Investing in a property with a view of the Tagus River can be a financially advantageous decision, especially if the property is in a developing location or undergoing redevelopment. The emotional and historical connection to the river, combined with consistent demand for stunning views, ensures that these properties remain at the top of buyers' and investors' preferences.

If you are considering this type of investment, the recommendation is clear: evaluate the location carefully, seek specialized support, and invest in properties that combine views and quality construction to maximize return on investment. After all, in the real estate market, location is everything!