Southern European cities including Lisbon, Madrid and Athens saw strong growth in residential property values in the first half of the year, as an ongoing supply crunch buoyed the high-end housing market.

Out of 30 cities analysed by property firm Savills, Lisbon notched the strongest capital-value growth in prime residential real estate, with a 4.2 per cent gain, thanks largely to an influx of wealthy foreign buyers. Amsterdam, Madrid and Athens all saw increases of more than 3 per cent, according to an index that tracks prime residential property in cities around the world.

Bloomberg