The latest data from Knight Frank – which analysed 44 cities – reveals that house prices continue to rise at a high rate in the Portuguese capital, making it the second city in the world to record the highest price acceleration in the second quarter of this year.

The latest data from the Prime Global Cities Index, compiled by Knight Frank, shows that annual growth in house prices around the world has slowed, from 4.1% in the first quarter of 2024 to 2.6% in the second quarter of 2024.

“The slowdown in price growth this quarter in prime markets reflects the fact that, without further stimulus from rate cuts, the market price growth we have seen in recent quarters is losing momentum,” explains Liam Bailey, global head of research at Knight Frank, quoted in a statement. He adds that “the biggest influence on future price growth lies in the hands of central banks and their confidence in cutting rates further in the next 12 months.”

However, there are residential markets that are going against the trend. This is the case in Lisbon, where house prices rose 4.7% in the second quarter of this year, 3 percentage points more than in the previous quarter (1.8%), the report reveals. Lisbon recorded the second largest increase in house prices in this period, only behind Stockholm, which is at the top of the podium in terms of growth.

“This increase in prices in the city of Lisbon shows that the national market continues to be attractive for foreign investment and that our economic stability is sending positive signals about the market”, comments Francisco Quintela, CEO of Quintela + Penalva, Knight Frank’s partner in Portugal.