Short-term rental (short-term)

High returns with active management

Tourist rentals under the Local Accommodation regime are the most cash-flow-oriented real estate investment model, focused on maximising monthly income through frequent stays and high guest turnover. This type of short-term operation makes it possible to adjust prices according to the season, local events and daily demand, enabling a more dynamic and, in many cases, higher income than traditional long-term rentals.

Yields and profitability

Typical yields between 5% – 8%, depending on location, property quality, occupancy rate and the efficiency of day-to-day management of the local accommodation, can reach 10%+ in prime areas and peak seasons, especially in well-decorated properties, with good online reviews and positioned on short-term rental platforms such as Airbnb or Booking; in Lisbon: ~6%–8%, with particularly strong performance in central neighbourhoods close to transport, tourist attractions and restaurant areas, where demand for tourist accommodation is constant; difference compared to long-term rentals: +2% to +3.5%, reflecting the ability to charge higher daily rates and adjust prices in real time according to market demand.

Strongest areas

Lisbon (historic area and city centre), with high tourist demand throughout the year, a strong presence of digital nomads, a wide cultural offering and an excellent transport network.

Porto, in continuous growth as an urban destination, highly attractive to European tourists, city breaks and extended weekend stays.

Algarve (very strong in summer), benefiting from an extended high season, beach tourism, golf and family holidays, with peak occupancy and higher daily rates in local accommodation.

Demand drivers

Growing international tourism, driven by low-cost flights, the promotion of Portugal as a safe and attractive destination, and a strong presence on digital accommodation booking platforms.

Short stays, such as city breaks, business trips, weekend getaways and visits to cultural or sporting events, which favour short-term rentals.

Digital nomads and hybrid trips, combining remote work with leisure, seeking comfortable, well-located accommodation with good technological infrastructure and high-speed internet.

Portugal maintains one of the strongest tourism chains in Europe, supporting high occupancy rates for most of the year. The combination of mild climate, safety, gastronomy, historical heritage and good value for money makes the country a recurring destination for visitors who return several times,

Long-term rental

Stability, predictability and liquidity in real estate investment

Long-term residential leasing is the structural foundation of the residential real estate market in Portugal, ensuring recurring income streams, lower exposure to short-term economic cycles and more stable occupancy of properties over time.

Yields and profitability of residential rentals

Typical yields between 4% – 5.5%, reflecting a balanced combination between the security of the real estate asset and attractive medium- and long-term returns; national average around ~4.6%, with variations depending on location, property type, condition, rent levels and tenant profile; in prime areas, yields between 3.5% – 5%, where higher liquidity, constant demand and lower vacancy risk offset slightly more compressed yields.

Characteristics of long-term rentals

• contracts of 1 year or more, often renewable, which allow income and expenses to be planned with greater security and financial predictability
• lower volatility compared to other real estate segments, with reduced sensitivity to seasonality and short-term shocks in housing demand
• lower operating costs, since tenant turnover is lower, there are fewer vacancy periods and less need for intensive marketing campaigns to occupy the properties

Strongest rental areas in Portugal

Lisbon, with high demand from families, young professionals and students, as well as a strong presence of companies, services and decision-making centers

Porto, in continuous growth, driven by universities, business tourism, technology and an increasingly dynamic business ecosystem

peripheral areas with strong housing pressure, where the shortage of supply and more affordable prices compared to urban centers create opportunities for consistent profitability in long-term rentals

Structural demand (critical market point)

Portugal is currently facing a structural imbalance between the available supply and the real housing needs in the long-term rental market.

Significant shortage of properties for long-term rental, especially in urban and metropolitan areas, where pressure on rental prices is most evident.

• increase in the urban population, driven by the concentration of jobs, services, higher education and infrastructure in the main cities
• growth in expatriates and digital nomads, who seek flexible housing solutions in Portugal and contribute to additional, diversified and continuous demand for rentals
• difficulties in accessing home ownership, due to rising sale prices, the need for higher down payments and stricter criteria for granting mortgage credit

Valorização do imóvel (capital appreciation)

Independentemente da estratégia de arrendamento escolhida, uma componente crítica do retorno no investimento imobiliário em Portugal é a valorização do ativo no momento da venda. Em muitos projetos de investimento em imóveis, é precisamente esta valorização de capital que representa a maior fatia do ganho total ao longo do ciclo de investimento, sobretudo em horizontes de médio e longo prazo.

Enquanto o rendimento de arrendamento garante fluxo de caixa recorrente e ajuda a suportar custos correntes, é na fase de saída que se materializa a criação de riqueza, através da diferença entre o preço de compra e o preço de venda, ajustado pelos custos e impostos associados. Por isso, qualquer análise séria de investimento imobiliário em Portugal deve integrar, desde o início, uma estratégia clara para a valorização do imóvel, para a otimização fiscal e para o momento ideal de desinvestimento.

Contexto de mercado

O mercado imobiliário português tem sido caracterizado por:

• Procura internacional consistente (EUA, Brasil, Europa), impulsionada por programas de residência, elevada qualidade de vida e crescente notoriedade de Portugal como destino seguro para viver, trabalhar remotamente e investir em imóveis residenciais e turísticos.
• Escassez estrutural de oferta, sobretudo em zonas premium, onde a disponibilidade de novos terrenos é limitada e os processos de licenciamento e construção são demorados, o que restringe a capacidade de resposta da oferta face à procura crescente por habitação e investimento.
• Atratividade macro: segurança, clima ameno, estilo de vida, sistema de saúde, educação internacional e boa conectividade aérea com as principais capitais europeias e americanas, fatores que reforçam a perceção de Portugal como um mercado estável e atrativo a longo prazo para investimento imobiliário.

Cidades como Lisboa e Cascais continuam a concentrar a maior pressão de procura, tanto para habitação própria como para investimento, mas outras localizações, como Porto, Oeiras, aAlgarve e algumas cidades médias, têm vindo a ganhar relevância, beneficiando de melhorias em infraestruturas, tecnologia e oferta de serviços.

Histórico recente (referência de base)

Nos últimos 5 anos, o mercado imobiliário em Portugal registou:

• Valorização total: ~+38% a +60%, dependendo da zona, tipologia e estado de conservação do imóvel, com algumas áreas centrais e turísticas a registarem desempenhos ainda mais expressivos em termos de valorização de imóveis.
• Crescimento médio anual: ~6% a 10%, um ritmo claramente acima da inflação média do período, o que traduz um ganho real significativo para quem esteve exposto ao mercado durante todo o ciclo de investimento imobiliário.

Este período refletiu um ciclo excecional de expansão, suportado por taxas de juro historicamente baixas, forte procura internacional, aumento do turismo e crescimento da atratividade global de Portugal como destino de investimento imobiliário.

Não é expectável repetir este ritmo no próximo ciclo, sobretudo num contexto de maior normalização monetária, maior escrutínio regulatório e maior sensibilidade a preços por parte dos compradores.

Assim, as projeções futuras de valorização imobiliária devem ser encaradas com prudência, utilizando este histórico como referência, mas não como garantia de repetição dos mesmos níveis de valorização de imóveis em Portugal.

Projeção de valorização (3 a 5 anos)

• Cenário Base (mais provável)

Horizonte Valorização Esperada
3 anos +10% a +20%
5 anos +20% a +30%

Neste cenário base, assume-se um mercado em crescimento moderado, com procura estável, algum ajustamento pontual de preços em segmentos sobreaquecidos e manutenção da atratividade estrutural de Portugal. A valorização tende a ser mais seletiva, premiando imóveis bem localizados, com boa liquidez, qualidade de construção e posicionados em segmentos de procura sólida, tanto para arrendamento como para compra.

Fatores críticos de valorização

A valorização não é homogénea. Depende sobretudo de:

1. Preço de entrada

• O principal driver de retorno
• Margem criada na compra define o ganho futuro

2. Micro-localização

• Diferenças significativas dentro da mesma zona
• Rua, acessos, envolvente e potencial urbano são determinante

3. Liquidez na revenda

• Tipologias com maior procura (T1/T2) tendem a valorizar mais consistentemente
• Segmentos ultra-luxo podem ter maior volatilidade na saída

4. Dinâmica da zona

• Áreas em regeneração ou expansão apresentam maior upside
• Infraestruturas, comércio e acessibilidade aceleram valorização

 Riscos a considerar

• Subida prolongada de taxas de juro
• Alterações fiscais relevantes
• Redução da procura internacional
• Aumento significativo da oferta (menos provável no curto prazo)

Conclusão estratégica

• O ciclo atual é de crescimento mais moderado, mas ainda positivo
• A valorização continua a ser um componente essencial do retorno total

Supply vs Demand in Real Estate (the main driver)

Tourism in Portugal (short-term)

• consistent global tourism demand, driven by international travel throughout the year and by a steady flow of tourists seeking authentic experiences, safety, good weather and high-quality local accommodation
• ongoing growth in European travel, with particular emphasis on source markets such as France, Germany, the United Kingdom and Spain, which see Portugal as an accessible, nearby destination with excellent value for money and a strong supply of short-term accommodation

Portugal as a top destination in tourism rankings, city breaks and family holidays, reinforced by factors such as gastronomy, cultural heritage, beaches, events, urban and nature tourism, as well as increasing air connectivity with the main European capitals 

Supports the short-term rental market, ensuring high occupancy rates, strong guest turnover and the potential to optimise nightly rates during periods of higher tourist demand

Housing in Portugal (long-term)

• severe shortage of housing supply, resulting from years of under-construction, urban planning bureaucracy and restrictions on new projects in central areas with good access to transport, services and employment
• continuous increase in long-term rental prices, driven by competition between residents, students, expatriates and digital nomads, which pushes rents up in practically all segments of the residential market
• political pressure to increase the housing stock, with public programmes, incentives for affordable rentals and ongoing debate on real estate market regulation, which reinforces the relevance of the topic on the national agenda

Supports the long-term rental market, creating conditions for stable contracts, lower tenant turnover and greater income predictability over the years.

Structural conclusion on the Portuguese market

Portugal simultaneously presents:

• excess tourism demand, with cities such as Lisbon, Porto, Faro and the islands recording record overnight stays, longer stays in local accommodation and growing diversification of international markets throughout the year

• shortage of permanent housing, especially in urban and peri-urban areas, where the supply of homes to rent or buy does not keep pace with the growth of the resident population, students and foreign professionals who choose the country to live and work

This creates real estate investment opportunities in both models — tourism and housing — with different risk profiles, distinct investment horizons and management strategies adapted either to short-term rentals or to long-term housing.

What is the best real estate investment strategy?

The best real estate investment strategy always depends on the investor’s profile. Financial goals, risk tolerance, time horizon and liquidity needs directly influence the decision between investing in short-term rentals, long-term rentals or a combination of both approaches.

Short-term 

• higher income potential, with the ability to generate significant cash flow in a short period of time, especially in tourist areas, city centers or regions with strong seasonal demand
• more volatile, subject to fluctuations in occupancy rates, regulatory changes in local accommodation and price variations throughout the year, requiring constant monitoring of the real estate and tourism markets
• more complex, as it involves active property management, a focus on guest experience, dynamic price optimization, digital marketing and, often, the use of specialized platforms or local accommodation management companies

Long-term

• lower risk, with longer lease agreements that ensure predictable income and less exposure to short-term fluctuations in the rental market
• stable income, ideal for those who prioritize consistency, long-term financial planning and less involvement in the day-to-day management of the property and tenants
• strong structural demand, especially in urban areas with population growth, limited housing supply and good accessibility, factors that tend to support asset appreciation over time

Hybrid strategy (increasingly common)

The hybrid strategy combines features of both short and long term, allowing the use of the property to be adjusted to the investor’s life cycle and to real estate market conditions. This approach seeks to balance profitability, security and flexibility, taking advantage of different forms of occupancy throughout the year.

• combination of own use + rental, allowing enjoyment of the property at certain times and monetizing it during the remaining period, either as local accommodation (short-term) or traditional long-term rental
• diversification within the real estate portfolio, by allocating some properties to long-term strategies and others to short-term, reducing dependence on a single source of income and increasing investment resilience in the face of economic, regulatory or demand changes

Our role

Approach to real estate investment in Portugal

Success in real estate investment in Portugal depends on three key factors which, when aligned, make it possible to maximise returns, protect capital and reduce risk throughout the entire real estate investment cycle:

• location – choosing the right place, in the right city, at the right time, assessing accessibility, services, neighbourhood dynamics, local supply and demand, and the property’s potential for future appreciation
• strategy – defining a clear real estate investment plan, whether for income, resale, development or rehabilitation, aligned with the risk profile, return objectives and investment time horizon
• execution – ensuring that the plan is implemented rigorously, from purchase negotiation through to asset management, cost control, deadlines, quality and compliance with all legal and contractual obligations

Independent advisory throughout the entire investment cycle

Independent advisors operate in all these stages of real estate investment in Portugal, ensuring a professional, transparent and results-oriented approach, from identifying the opportunity to exiting the investment and realising the capital gain.

Support is continuous and personalised, based on up-to-date market information, robust financial models and a consolidated network of local partners, making it possible to turn investment objectives into concrete, well-founded decisions aligned with the reality of the Portuguese real estate market.

Investment analysis and structuring services

• selection of assets with yield adjusted to risk, through detailed cash-flow analyses, comparison with similar transactions, market studies and assessment of medium- and long-term appreciation potential
• analysis of real demand by area, combining demographic data, rental trends, occupancy rates, levels of available supply and ongoing or planned urban development projects
• access to on- and off-market opportunities, benefiting from privileged relationships with developers, owners, funds and intermediaries, which makes it possible to reach assets that are rarely disclosed to the general public and that offer competitive conditions
• complete investment structuring, including definition of the investment vehicle, legal and tax support through specialised partners, planning of bank financing, optimisation of the cost structure and support in the management, enhancement and eventual disposal of the asset