October 31, 2022

Find the most profitable cities in Portugal

Article by
Rita Xara-Brasil

Want to invest in Portugal but don't know where? Know which are the most profitable cities to do so.

Portugal is one of the most attractive countries in Europe.

Who says so is the consultancy company EY in its study "Attractiveness Survey Portugal" which analysed, in 2022, the trends of Foreign Direct Investment in Portugal through the perceptions of foreign investors. 28% of the investors surveyed considered the Real Estate and Construction sector as one of the sectors that will contribute most to the growth of the Portuguese economy, maintaining the high level of attractiveness and potential for growth and development in the sector.

There is a reason behind it. Portugal stands out for its strategic location, its privileged climate, its low crime rate, and it is one of the safest countries in the world. Add to these attributes the great technological growth which places the country as one of the primary European technological hubs. 

If you are interested in investing in Portugal but don't know which areas of the country will bring you more profitability, or how to do it, the consultants from Your Property Advisor can be your best partners for this adventure. 

Overall, in Portugal, the average house price between April and June was around 190,054€, according to Statistics Portugal. Of course, prices vary between regions. While the Algarve region is the most expensive, with an average of 287.587€, followed by the Lisbon Metropolitan Area, with an average price of 260.754€, Alentejo and the Center region are the most affordable regions.

The experience and negotiation skills of the consultants of Your Property Advisor, combined with dynamism, resilience, and quick response, allows them to identify the best market opportunities for you, adapted to your needs, and at the best market value. Just in two years of activity, the team saved its clients a total of 3 million euros. Why not be the next to be included in this result? Find out here which are the best areas in the country to invest in! 


In the second half of 2022, according to Idealista, Santarém was the district that proved to be the most profitable, with a return of about 7.9%. In this district, 64% of the houses for rent cost less than 750 euros a month and the price per m2 is 917 euros. Santarém, a city considered the queen of Ribatejo, is rich in historical and cultural heritage, where you can find several abundant monumental structures, as well as traces of Roman and Arab occupation that attest to the historical wealth of this region.


Next comes the district of Leiria, with an average profitability of 6.5%. Leiria is a city rich in cultural heritage that enchants those who visit it for its distinct points of interest, such as the Lis and Lena rivers, Pedrógão beach, pine forest, rock shelters, architecture, medieval constructions, handicrafts, and gastronomy.


As for Coimbra, which shows profitability of 5.6%, it is home to a heritage of great architectural, cultural, and natural value. This city is home to one of the oldest universities in Europe, the University of Coimbra, founded in 1290, which is a World Heritage Site by UNESCO in 2013. 


Braga, distinguished in 2021 by the European Best Destinations as the best European destination, can offer you profitability of about 5.5%. The city is characterized by its beauty and rich heritage, where its long history of 2000 years can be seen in splendour in its monuments, museums, and churches. It was also highlighted as one of the best cities to invest in, and the most romantic, for being one of the happiest and with the best quality of life in Europe. 

Finally, we highlight two cities: the country's capital, Lisbon, and Faro, each with the profitability of around 3.5% and 4.7%, respectively. 


In Lisbon, the demand for houses is high and renting may prove profitable depending on the location and typology of the property. As an incentive, the Lisbon City Council provides several supports for those who want to invest in the city. For example, exemption on Property Tax, Personal Income Tax/Corporate Income Tax on affordable rents and Property Tax reduction on urban buildings for housing. 

Last year, YPA participated in the constitution of a real estate investment fund worth 5M€ where the target was to buy apartments for income with yields around 6%. They ended up buying about 35 apartments located in prime areas of Lisbon, such as Lapa, Estrela, Santos, Campo de Ourique, Alfama and Penha de França. The search was centred on apartments and buildings of typologies T0 and T1 in the centre of Lisbon, where business, tourism and culture thrive. This brought profitability to the investors above 6%, a value above Lisbon's average. This achievement was only possible due to the consultancy provided by the team to its clients, who in only nine months analysed more than 1000 properties and negotiated more than 200 proposals to close the 30 housing units with an average discount of 15%. 


Finally, Faro is considered the capital of the Algarve and is an ancient city by the sea, full of customs, and historical and cultural heritage. Its sunny climate and rich gastronomy promise good investments in what is the biggest vacation destination in Portugal. 

Are you convinced to invest in our country? Schedule a meeting with Your Property Advisor.

A company that will attend to you in all steps to make your business more profitable, safe, and successful, with a team 100% dedicated to its clients, with their eyes on the market, by the minute.

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