Portugal Buy to Let Yields 7.2% in Castelo Branco & Santarém

Discover the highest profitability regions in Portugal for buy to let investments, with Castelo Branco and Santarém leading the way at 7.2% yield.

The real estate market in Portugal continues to show promising returns for investors looking to purchase properties for rental purposes. According to data from idealista, the gross yield on rental properties in the second quarter of 2024 was 7.2 percent, marking a 0.3 percentage point increase from the same period in 2023. This growth trend is also evident when compared to the second quarter of 2020, with a 0.5 percentage point increase in profitability.

The demand for rental properties in Portugal remains high, outstripping the available supply and driving up rental prices. This imbalance has created a lucrative opportunity for investors looking to buy properties for rental income. Among the 13 district capitals analyzed, Castelo Branco stands out as the most profitable city for property investment, boasting a return of around 9.1 percent. However, it is important to note that higher returns often come with higher investment risks.

Other cities with attractive housing returns in the second quarter of 2024 include Santarém (8.1 percent), Coimbra (6.8 percent), Leiria (6.5 percent), Évora (6.3 percent), Setúbal (5.9 percent), Porto (5.8 percent), and Viseu (5.7 percent). On the other hand, cities like Lisbon (4.6 percent), Funchal (5 percent), Faro (5.1 percent), Aveiro (5.5 percent), and Viana do Castelo (5.6 percent) offer lower profitability rates but with lower investment risks.

Overall, the Portuguese real estate market presents a favorable environment for investors seeking to capitalize on the growing demand for rental properties. With the potential for attractive returns and a persistent supply-demand imbalance, buying houses for rental purposes remains a lucrative business opportunity in Portugal.