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Best Airbnb Markets in Portugal (2026)

Based on Airbtics data from January 2025 to December 2025, this page shows the top Airbnb locations to invest in Portugal with key statistics and information, like short-term rental regulations, number of listings, occupancy rate, average daily rate, and annual revenue. This allows you to discover the most profitable cities to invest in, buy, and own Airbnb rental properties in Portugal.

The Airbtics Market Score indicates how attractive a location is for investing in an Airbnb rental property. We determine this score based on the following criteria:

  1. Short-term rental yield: The ratio between annual revenue and property price, as a percentage. Locations with higher Airbnb rental yield score better.
  2. Short-term rental regulations: How STR-friendly the local Airbnb rules and laws are. Markets with more lenient regulations get a higher score.
  3. Market size: The number of Airbnb listings. Larger vacation rental markets get a higher score as it is easier for investors to buy and sell properties.
  4. Growth: How fast the market is becoming saturated. Priority is given to markets that are already developed but are not approaching saturation yet.
  5. Seasonality: To what degree Airbnb performance is affected by seasonality. Less seasonal impact is preferred as investors can enjoy a more stable short-term rental performance throughout the year.
Learn more about how we collect the data and accuracy

Last updated: February, 2026

Portugal Short-Term Rental Market Overview (Full-Year 2025 Analysis)

National averages across all Portugal markets
Average Occupancy Rate i
69.33%
Average Annual Revenue i
€31,621
Average Daily Rate (ADR) i
€123
YoY Supply Growth i
18.62%
YoY Revenue Change i
14.55%

Top 24 Portugal Cities for Airbnb in 2026

Position Market Grade Market Name Regulation No of Listings Avg. Occupancy Rate Avg. Daily Rate Revenue Short-term Rental Yield Rent Gap
1DLisbon
Strict
13,01981%€114€34,31012.3%34.5%
2CPorto
Strict
9,17278%€90€26,14212.3%34.5%
3AMadeira
Strict
6,37288%€129€41,85012.3%34.5%
4B+Azores
Strict
4,32568%€118€29,55412.3%34.5%
5C+Albufeira
Strict
3,57668%€144€36,10312.3%34.5%
6D+Portimao
Strict
2,74264%€115€27,23912.3%34.5%
7C+Lagos
Strict
2,73075%€133€37,08312.3%34.5%
8AFunchal
Strict
2,53590%€137€45,54312.3%34.5%
9D+South lisbon
Strict
2,30662%€132€30,33712.3%34.5%
10BQuarteira
Strict
2,15466%€146€35,59212.3%34.5%
11ASão miguel
Strict
2,05672%€127€33,72312.3%34.5%
12BFaro
Strict
1,71775%€107€30,01212.3%34.5%
13BArmação de pêra
Strict
1,52867%€132€32,94112.3%34.5%
14BVila nova de gaia
Strict
1,27675%€100€27,93512.3%34.5%
15BTavira
Strict
1,09367%€121€30,15612.3%34.5%
16D+Nazare
Strict
1,08955%€96€19,89612.3%34.5%
17D+Alfama
Strict
1,04185%€113€35,64612.3%34.5%
18DAveiro
Strict
1,00755%€97€19,96012.3%34.5%
19BCarvoeiro
Strict
86472%€152€40,36112.3%34.5%
20D+Cascais
Strict
82870%€154€39,98812.3%34.5%
21DPinhão
Strict
76151%€118€22,34312.3%34.5%
22DPonte da barca
Strict
71945%€120€20,18412.3%34.5%
23CEriceira
Strict
61367%€125€31,10412.3%34.5%
24CAljezur
Strict
51668%€122€30,89112.3%34.5%

Find the Best Airbnb Markets with Our Interactive Tool

Use our interactive Market Explorer to find the best places to start an Airbnb in Portugal. Compare multiple markets side by side, apply filters like regulations, budget (property or rent prices), and market size, and even export the results to Excel.

Explore Interactive Tool

📊 Want a deeper dive into Portugal's STR market?

Explore our comprehensive 2025 Short-Term Rental Market Report for Portugal, featuring detailed market trends, supply analysis, and year-over-year insights.

View 2025 Market Report

Why Invest in Airbnb Portugal in 2026?

In recent years, Portugal has emerged as one of the best locations for investing in short-term rentals thanks to its popular tourist attractions, thriving business activities, growing digital nomad presence, and vibrant cities like Funchal, Madeira and Carvoeiro. With millions of international visitors coming each year, the demand for vacation rental accommodations is growing, making Airbnb Portugal a lucrative option for both local and foreign investors.

Due to strong demand from travelers, Portugal offers competitive average daily rates (ADR), healthy occupancy rates, and attractive revenue potential in the best Airbnb markets. Whether you're looking to start your first Airbnb business with a modest budget or to add a luxury short-term rental property to your portfolio, Portugal has a profitable location to meet your budget and aspirations as an investor.

Market Saturation Analysis: Portugal

Benchmark: Markets are categorized relative to Portugal's national averages (Supply: +18.6%, Revenue: +14.6%). Markets above the national average are marked with ↑, while those below are marked with ↓.

🟢

Healthy Growth

Supply > avg, Revenue > avg
Expansion with demand keeping up

  • Madeira Supply: +22.7% | Revenue: +27.2%
  • Funchal Supply: +23.9% | Revenue: +23.8%
  • Armação de pêra Supply: +22.1% | Revenue: +19.1%
  • Faro Supply: +19.3% | Revenue: +17.9%
  • South lisbon Supply: +23.3% | Revenue: +15.3%
🟡

Early Saturation

Supply > avg, Revenue ≤ avg
Competition rising

  • Albufeira Supply: +23.6% | Revenue: +12.4%
  • Portimao Supply: +21.4% | Revenue: -2.3%
  • Aveiro Supply: +21.1% | Revenue: +12.2%
  • Pinhão Supply: +20.8% | Revenue: +12.8%
  • Vila nova de gaia Supply: +19.1% | Revenue: +9.4%
🔵

Under-the-Radar

Supply ≤ avg, Revenue > avg
Hidden opportunities

  • São miguel Supply: +17.7% | Revenue: +25.2%
  • Tavira Supply: +16.6% | Revenue: +20.3%
  • Carvoeiro Supply: +16.4% | Revenue: +19.4%
  • Azores Supply: +16.6% | Revenue: +19.4%
  • Quarteira Supply: +18.3% | Revenue: +17.9%
  • Ericeira Supply: +16.9% | Revenue: +17.6%
  • Lagos Supply: +16.8% | Revenue: +17.3%
🔴

Declining

Supply ≤ avg, Revenue ≤ avg
Risky markets

  • Lisbon Supply: +18.4% | Revenue: +5.7%
  • Porto Supply: +14.9% | Revenue: +6.3%
  • Cascais Supply: +15.4% | Revenue: +8.9%
  • Aljezur Supply: +14.5% | Revenue: +9.2%
  • Alfama Supply: +13.3% | Revenue: +9.9%
  • Ponte da barca Supply: +16.3% | Revenue: +11.8%
  • Nazare Supply: +17.6% | Revenue: +12.6%

Best Cities for Airbnb in Portugal by Budget

Top 3 Affordable & Mid-Range Airbnb Markets: $500,000 & Below

These markets offer accessible investment opportunities with lower to moderate property prices, suitable for investors seeking entry-level or mid-range options.

  1. Vila nova de gaia
    • Property price: €167,400
    • STR revenue: €27,935/year
    • Yield: 19.6%
  2. Azores
    • Property price: €186,000
    • STR revenue: €29,554/year
    • Yield: 17.4%
  3. Madeira
    • Property price: €232,500
    • STR revenue: €41,850/year
    • Yield: 18.8%

Top 3 Best Places for Airbnb Arbitrage in Portugal

  1. São miguel
    • STR revenue: €33,723/year
    • Rent gap: €5,033
  2. Funchal
    • STR revenue: €45,543/year
    • Rent gap: €4,142
  3. Azores
    • STR revenue: €29,554/year
    • Rent gap: €3,709



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