Last updated on June 21st, 2023
best places in portugal to buy property
Key Takeaways
• Porto’s stable economic conditions, quality of life, and tourist market have helped hosts to earn a good passive income by owning Airbnb listings.
• Learn the advantages that investors can enjoy when owning an investment property in Porto, Portugal.
• We unveil the top 10 most profitable neighborhoods in Porto along with their recommended property types and Airbnb data.
Introduction
Located in the northern region of Portugal, alongside the right bank of the Douro River, lies one of the oldest European centers, the majestic city of Porto. The city prides itself on a wide and rich historical patrimony. In fact, its core is a UNESCO World Heritage Site!
With a competitive economy, plentiful interesting tourist attractions, diverse gastronomy and lively nightlife, Porto is surely a fascinating place to visit! Moreover, its growing housing market is a huge catch for real estate investors looking for promising investment opportunities in Portugal.
According to Airbnb News, Porto is a trending international destination that US and Canadian travelers are searching for on Airbnb this spring 2023!
In this blog, we’ll feature the best places in Porto, Portugal to buy a rental property and include some of the advantages of investing in real estate in this city. Continue reading to get the Airbnb analytics!
Why invest in Porto rental market?
Investing in real estate in Porto as a way of earning a passive income is an amazing idea since it offers a good return on investment to property investors. But what advantages does Porto offer to real estate investors?
Check out some of the reasons why buying an investment property in Porto is an excellent idea:
Growing real estate market
Over recent years, Porto’s real estate market has been registering a steady growth rate thanks to the increasing demand. For this reason, the city became a hotspot for property investments
Porto offers a wide range of high-quality assets that can entice local and foreign investors alike. Thanks to this, Porto real estate market has also been solidifying its position as a solid option for property investors according to the Idealista portal.
Strong and diverse economy
Porto is the economic center and industrial powerhouse of the north region of Portugal contributing a GDP of €34.6M and representing 42% of its labor market The city enjoys a diversified economy with a variety of industrial and services sectors that offer a wide range of job opportunities.
In recent years, Porto has also become a magnet for foreign investments thanks to its solid tourist market, technological and innovative sectors, startup ecosystem, and research centers.
Top-notch living quality
Porto is a vibrant city that blends its fascinating historical and cultural heritage with its trendy and cosmopolitan side. The city offers a welcoming atmosphere where you can have easy access to good healthcare services, a reliable transport network, modern infrastructure, and delicious gastronomy!
In Porto, you can enjoy a safe stroll in a city filled with green spaces, beautiful architecture, and family-friendly areas. Furthermore, Porto held the 18th rank as one of the best cities in the world to live in 2022.
Unlimited recreational experiences
It’s a fact that Porto is an interesting and dazzling city that has a lot to offer when it comes to recreational options. The city is home to a thriving arts and cultural scene, unique tourist attractions, an intriguing history, and exquisite cuisine. Of course, we can’t forget to mention that you can also enjoy a delicious cup of the renowned Porto’s wine while exploring the city.
There’s no lack of museums, theaters, markets, restaurants, parks, and great beaches where you can do water sports. Moreover, you can experience Porto’s vibrant energies with its exciting festivals and events.
Is Airbnb Profitable in Porto?
Airbtics confirms that investing in real estate in Porto can lead to a financially rewarding experience. That being said, we must point out that the amount of profitability that you can gain also depends on other metrics like the property type and location.
An Airbnb host can expect an average annual revenue of €33,992 and a median occupancy rate of 86% for operating a 2-bedroom property in Porto as confirmed by Airbtics’ analytics data.
Best Places to Invest in Rental Properties in Porto, Portugal
Porto is the second-largest city in Portugal and is divided into a variety of charming districts. So, we can expect that the profitability in each district is consequently different. For this reason, it can be a challenge to choose the best place to set up your Airbnb property in Porto.
Check out the best areas in Porto that are recommended for buying investment properties:
1. Porto Historical Center
- Total Number of Airbnb Listings: 1,181
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €437,500
- Airbnb Annual revenue: €41,238
- Gross rental yield: 9.47%
2. Miragaia
- Total Number of Airbnb Listings: 197
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €325,000
- Airbnb Annual revenue: €36,461
- Gross rental yield: 11.22%
3. Foz Velha
- Total Number of Airbnb Listings: 171
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €500,000
- Airbnb Annual revenue: €36,437
- Gross rental yield: 7.29%
4. Bolhão
- Total Number of Airbnb Listings: 775
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €349,000
- Airbnb Annual revenue: €36,016
- Gross rental yield: 10.32%
5. Carolina Michaelis
- Total Number of Airbnb Listings: 115
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €331,000
- Airbnb Annual revenue: €33,389
- Gross rental yield: 10.09%
6. Fontaínhas
- Total Number of Airbnb Listings: 286
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €350,000
- Airbnb Annual revenue: €31,476
- Gross rental yield: 9%
7. Palácio de Cristal
- Total Number of Airbnb Listings: 105
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €355,000
- Airbnb Annual revenue: €28,426
- Gross rental yield: 8%
8. Campo 24 de Agosto
- Total Number of Airbnb Listings: 269
- Best bedroom size: 1 bedroom
- Median property price (1 bedroom): €199,000
- Airbnb Annual revenue: €22,939
- Gross rental yield: 11.53%
9. Lapa
- Total Number of Airbnb Listings: 271
- Best bedroom size: 1 bedroom
- Median property price (1 bedroom): €215,000
- Airbnb Annual revenue: €21,188
- Gross rental yield: 9.85%
10. Casa da Música
- Total Number of Airbnb Listings: 107
- Best bedroom size: 1 bedroom
- Median property price (1 bedroom): €197,500
- Airbnb Annual revenue: €21,159
- Gross rental yield: 10.71%
Conclusion
It’s a given fact that investors can obtain a good cash-on-cash return by investing in the Porto real estate market as there are plenty of profitable areas. Despite that, it is always important to analyze your options carefully.
Now that you know what are the best places in Porto, Portugal to buy an investment property, you should aim further! Try Airbtics’ Airbnb profit calculator and think of long-term profitability!
