CLOSE X

Register - if you don't have an account

Yes! Sign me up for Global Property Guide's fortnightly email newsletter.


Login - for registered users

Forgot Password?
Explore destinations
continent map couldn't be loaded Pacific Europe & Russia North America Latin America Asia Africa Middle East Caribbean

 


Financial Overview

Directory

Property Search

Global Statistics

Regional Statistics






Sep 21, 2016

Rental yields on Lisbon apartments good, ranging from 5.4% to 6.2%


Last Updated: Sep. 21, 2016
ALGARVE - Apartments COST (€) YIELD (p.a.) PRICE/SQ.M. (€)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
70 sq. m. 133,140 421 3.79% 1,902 6.01
120 sq. m. 214,320 619 3.47% 1,786 5.16
ALGARVE - Villas
150 sq. m. 361,950 918 3.04% 2,413 6.12
300 sq. m. 996,800 2,356 2.84% 2,492 5.89
LISBOA - Apartments
50 sq. m. 126,450 666 6.32% 2,529 13.32
85 sq. m. 196,095 1,006 6.16% 2,307 11.84
120 sq. m. 305,160 1,434 5.64% 2,543 11.95
250 sq. m. 840,000 3,153 4.50% 3,360 12.61
LISBOA - Villas
200 sq. m. 410,600 2,070 6.05% 2,053 10.35
450 sq. m. 922,050 4,185 5.45% 2,049 9.30
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

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 range from 5.4% to 6.2%, 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.

In Algarve, a 120 sq. m. apartment costs on average EUR 1,800 per sq. m., or EUR 215,000. Algarve apartments return rental yields which range from 3.5% to 3.8%.

Our rental yields figures assume long-term lets; short-term rentals may earn higher returns.

Villas in the Algarve generally earn lower 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.






Comments


Be the first to comment on this article!



Login or Register to submit a comment!

In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.



Baltics Real Estate Market Overview 2016 - Colliers InternationalPoland Residential Market Q2 2016 REASPoland Residential Market Q3 2016 REAS
Compare Countries



Free Newsletter

Fortnightly updates from the global property arena directly to your inbox.


Email Address:





Connect to professional advice in Portugal





PROPERTY RECOMMENDATIONS

 
Download free property reports from international research houses

Our Newsletter

 
Fortnightly updates from the global property arena directly to your inbox.

Manage subscriptions
Chinese property buyers and Asian buyers, there is great property for high net worth Chinese buyers on Juwai.com

Which parts of the world are most attractive for property investment today?

Click here to see our Latest Investment Offers!

Close Me