Rental yields on both Lisbon District houses and apartments are good.
November 30, 2017
|Last Updated: Nov. 30, 2017|
|Lisboa District||COST (€)||YIELD (p.a.)||PRICE/SQ.M. (€)|
|TO BUY||MONTHLY RENT||TO BUY||MONTHLY RENT|
|Faro District apartments||173,250||651||4.51%||1,875||6.54|
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Source: CasaSapo Definitions: Data FAQ See also: Update Schedule
Lisbon´s property market is now reasonably priced. Comparatively speaking, Lisbon housing prices are among Europe´s lowest:
- an 85 square metres (sq. m.) Lisbon apartment in an elite area may cost around EUR 200,000 to buy.
- a 120 sq. m. Lisbon apartment may cost around EUR 300,000 to buy.
- a 250 sq m. Lisbon apartment may cost around EUR 840,000
How much will you earn? Apartment yields in Lisbon District range from 4.5% to 6.7%, with smaller apartments earning proportionately more. These are good yields and the purchase price is attractive for a European capital city, though Lisbon is hardly at the centre of things. Villas in Lisbon have similar gross rental yields.
Cascais apartments can generate excellent returns at 6.7%, while houses in Oeiras can generate surprisingly good returns at 6.15%
In Faro, Algarve, a 120 sq. m. apartment costs on average EUR 1,870 per sq. m., or EUR 215,000. Apartments in Faro return rental yields of around 4.5%.
Our rental yields figures assume long-term lets; short-term rentals may earn higher returns.
Conclusion: after many years on the back-burner, Lisbon is looking good. Tourist interest in the centre of Lisbon is enormous, so the option of letting via Airbnb is there for much of the year. Lisbon´s rental yields are comparatively among the highest in Europe, and Lisbon´s price to rent ratios are among Europe´s lowest.
Round trip transaction costs can be high in Portugal. See our property transaction costs analysis for Portugal and Property transaction costs in Portugal, compared to the rest of Europe.