The gross profitability of buying a house in Portugal to put it on the rental market was 6.9% in the last quarter of 2024, some 0.4 percentage points (p.p.) lower than those calculated for the same period in 2023 (7.3%), according to Idealista data. Currently, profitability in housing is 1.4 p.p. higher than that observed in the fourth quarter of 2021, of 5.5%, while the Madeiran capital has one of the lowest levels of profitability in the country.
“Analysing by district capitals, it is in Castelo Branco where it is most profitable to buy a house for investment, with its return in the order of 9.4%”, says idealista, followed by the cities of Santarém (7.5%), Coimbra (6.5%), Braga (5.9%), Setúbal (5.9%), Évora (5.9%), Leiria (5.9%), Porto (5.7%), Viseu (5.5%) and Faro (5.4%).
The lowest housing profitability is obtained by the owners of rented houses in Lisbon (4.6%), Funchal (5.2%) and Viana do Castelo (5.2%)
Profitability of offices, shops, and garages
This study also made it possible to analyze the profitability of other real estate products at a national level. According to Idealista, offices show a profitability of 9%, shops 8.4%, and garages 5.2%.
Samantha Gannon
info at madeira-weekly.com
