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 | ||
| Cascais apartments | 334,183 | 1,878 | 6.74% | 3,125 | 16.96 |
| Lisboa apartments | 347,507 | 1,578 | 5.45% | 3,830 | 15.10 |
| Oeiras apartments | 251,390 | 1,126 | 5.37% | 2,383 | 11.53 |
| Lisboa District | |||||
| Cascais houses | 516,546 | 2,551 | 5.93% | 2,742 | 11.60 |
| Lisboa houses | 397,376 | 1,797 | 5.43% | 2,937 | 15.72 |
| Oeiras houses | 413,057 | 2,117 | 6.15% | 2,092 | 13.19 |
| Faro District apartments | 173,250 | 651 | 4.51% | 1,875 | 6.54 |
| Porto District | |||||
| apartments | 164,807 | 918 | 6.68% | 1,422 | 8.30 |
| houses | 277,402 | 1,381 | 5.97% | 1,135 | 5.66 |
| Setubal District | |||||
| apartments | 119,253 | 547 | 5.50% | 1,232 | 6.24 |
| houses | 265,163 | 1,200 | 5.43% | 1,346 | 6.70 |
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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 |
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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.
Portugal - More data and information
- How expensive are houses in Portugal, compared to the rest of Europe?
- Property prices in Portugal. Graph of house price trends in Portugal
- How much rent can be earned from Portuguese property, compared to the rest of Europe?
- How much tax must foreign owners pay when they rent out their Portuguese property?
- Where to by property in Portugal
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