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Portugal: House Prices, Rents, and Rental Yields

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Last Updated: Sep 01, 2009

Tolerable rental yields but not enormously attractive

Last Updated: Sep. 1, 2009
ALGARVE - Apartments COST (€) YIELD (p.a.) PRICE/SQ.M. (€)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
45 sq. m. 104,265 n.a. n.a. 2,317 n.a.
70 sq. m. 160,575 n.a. n.a. 2,141 n.a.
120 sq. m. 209,640 n.a. n.a. 1,747 n.a.
200 sq. m. 299,200 n.a. n.a. 1,496 n.a.
ALGARVE - Villas
150 sq. m. 413,400 n.a. n.a. 2,756 n.a.
250 sq. m. 634,250 n.a. n.a. 2,537 n.a.
450 sq. m. 1,102,950 n.a. n.a. 2,451 n.a.
LISBOA - Apartments
65 sq. m. 135,070 627 5.57% 2,078 9.65
120 sq. m. 341,760 1,033 3.63% 2,848 8.61
200 sq. m. 450,600 1,952 5.20% 2,253 9.76
LISBOA - Villas
150 sq. m. 380,850 n.a. n.a. 2,539 n.a.
250 sq. m. 442,750 n.a. n.a. 1,771 n.a.
350 sq. m. 521,500 n.a. n.a. 1,490 n.a.
500 sq. m. 750,500 n.a. n.a. 1,501 n.a.
Districts researched:
The Algarve region includes the municipalities of Albufeira, Faro, Lagoa,
and the towns of Almancil, Vilamoura and Vila Real de Santo Antonio.
Lisboa region include the districts of Lisboa, Cascais and Oeiras.
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

Is Lisbon a good place to buy investment property? Apartments in Lisbon are relatively inexpensive by European standards at €2,393, and villas are even more attractively priced, with average per square metre (sq. m.) prices of €1,825.

However as an investment property destination, Lisbon remains problematic.  A property investment which brings a gross rental yield of 4.8%, as apartments in Lisbon do, is tolerable, but not enormously attractive. Quite aside from the various regulations which discourage property owners, and the country’s recently very low rate of growth (which can be read about on other pages) - factors which should discourage property investment.

The average (sq. m.) price of an apartment in the Algarve is €1,925.  Villas average €2,581

Unfortunately, no rental figures are available for villas in Lisbon, so no investment return figures are available.

 

Your Comments

posted by Rod Bryant | 2007-09-15

Amazing site. Thanks. Note the question links at the bottom of the Portugal page link to Asian charts.

posted by Derek Harper | 2008-02-06

Estate Agent, Portugal

Useful info, would it be possible to see upto date data. thanks Derek

posted by our Editor: Matthew Pollock | 2008-02-06

Yes indeed the European yields will be updated within the next 4 months

posted by Peter | 2008-02-19

Porto

I would be very interested in any data for Porto.

posted by Greg Clarke | 2008-06-23

Investment Sales, London

Porto would indeed be very interesting, especially the University district.

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