Last updated on August 9th, 2023
Purchasing a property in one of the best places to Airbnb in Algarve, Portugal can help you secure a good rental income. Discover more here!
Home > Resources > Airbnb Investment >
Purchasing a property in one of the best places to Airbnb in Algarve, Portugal can help you secure a good rental income. Discover more here!
- Last updated on
- August 9, 2023
Key Takeaways
- The solid tourist market, great quality of life, and lucrative rental markets of the Algarve have helped hosts to generate a good rental income by owning Airbnb properties.
- Get to know the advantages real estate investors can enjoy when buying a property investment around the Algarvel.
- Discover the top 10 most profitable cities in Algarve along with their recommended property types and Airbnb data.
Introduction
In the southernmost region of mainland Portugal, we can find the country’s most visited province, the Algarve. The Algarve possesses a unique and charming environment conformed by picturesque beaches, high cliffs with glorious sunsets, plenty of natural reserves, and beautiful cities.
Aside from being an important tourist destination in Europe, the Algarve is also one of the most developed provinces in Portugal. Additionally, real estate investors can also expect to earn a good passive income since most cities in the Algarve province offer a high potential for strong returns on investments!
In this article, we’ll reveal the best places to Airbnb in Algarve, Portugal, and some of the expectations when investing in real estate in this city. Eager to learn more? Continue reading!
Why should you consider buying rental property in Algarve, Portugal?
Investing in real estate in specific cities of the Algarve is an excellent way of earning a rental income since they offer a strong return on investment to property investors. But what advantages can Algarve’s cities offer to real estate investors?
Check out some of the reasons why buying Airbnb investment properties in the Algarve Province is an excellent idea:
Stable real estate market
The Algarve is a popular region for investment properties because aside from its good rental markets, it also has great climate conditions and high-quality. When it comes to the housing market prices, it can be considered fairly affordable as the average value goes from €2,200 – €3,300/m2. The market hasn’t experienced a price boom either and values have continued to rise, but in a healthy way.
Furthermore, there’s a strong demand for rental properties since the Algarve has a solid tourist market. There’s a high tourist flow in the cities located in this province, so this can be an attractive market for investors aiming to cater to tourist accommodations.
Enjoy the great living conditions
The cities of the Algarve province offer a laid-back lifestyle with a high standard of living. Living in this region means that you will have access to good educational options for both public and private schools, high-quality amenities, and plenty of recreational facilities.
We must also highlight that Portugal is among the safest cities in the world. Thus, you can also enjoy some peace of mind if you move or invest in Algarve. On top of that, English is widely spoken in cities located in this region!
Plenty of things to do
It’s a given fact that the Algarve Province is a unique place that can be mistaken as a natural paradise! This region is home to pristine beaches and cliffs with the best romantic sea views. The Algarve Province also has another character with its variety of interesting urban areas full of museums, restaurants, galleries, and much more.
The Algarve perfectly blends majestic natural landscapes with its rich cultural heritage, so it’s understandable why it is a top tourist destination. Moreover, the region has splendid weather conditions all year round. Hence, it doesn’t matter whether you visit this region during summer or winter because you will always find something to do here.
Is Airbnb Profitable in Algarve?
Don’t worry – Airbtics assures you that investing in real estate in Algarve is profitable. That being said, we must point out that the level of profitability highly depends on the property type and location.
An Airbnb host can expect an average annual revenue of €24,185 and a median occupancy rate of 76% for operating a 1-bedroom property in the city of Lagos as confirmed by Airbtics’ data.
Moreover, Lagos is also one of the top short-term rental markets in Europe as confirmed by our previous blog!
Source: Airbtics Dashboard
Top 10 Most Profitable Markets for Investment Properties in Algarve, Portugal
The Algarve is divided into 16 picturesque municipalities, making the profitability in each district vary. Thus, it can be a challenge to choose the best place to set up your Airbnb property in Algarve Province.
Check out the best cities in Algarve that are recommended for purchasing rental properties:
|
|||||
|---|---|---|---|---|---|
| Location | Number of Airbnb Listings | Best Number of Bedrooms | Median Property Price | Airbnb Annual Revenue | GRY |
| Quarteira | 1,849 | 4 Bedrooms | €900,000 (4 BD) | €61,371 | 6.81% |
| Portimão | 2,132 | 4 Bedrooms | €449,000 (4 BD) | €53,844 | 12% |
| Carvoeiro | 805 | 3 Bedrooms | €560,000 (3 BD) | €49,001 | 8.75% |
| Albufeira | 2,828 | 3 Bedrooms | €550,000 (3 BD) | €44,031 | 8% |
| Aljezur | 513 | 3 Bedrooms | €595,000 (3 BD) | €43,677 | 7.34% |
| Lagos | 2,083 | 3 Bedrooms | €575,000 (3 BD) | €41,414 | 8.50% |
| Alvor | 576 | 3 Bedrooms | €450,000 (3 BD) | €39,242 | 8.72% |
| Olhão | 745 | 3 Bedrooms | €330,000 (3 BD) | €33,059 | 10.01% |
| Faro | 708 | 2 Bedrooms | €345,000 (2 BD) | €29,327 | 6.58% |
| Tavira | 880 | 2 Bedrooms | €295,000 (2 BD) | €24,917 | 8.45% |
Airbnb Location
Airbnb Dataset
- Total Number of Airbnb Listings: 1,849
- Best bedroom size: 4 bedrooms
- Median property price (4 bedrooms): €900,000
- Airbnb Annual revenue: €61,371
- Gross rental yield: 6.81%
- Total Number of Airbnb Listings: 2,132
- Best bedroom size: 4 bedrooms
- Median property price (4 bedrooms): €449,000
- Airbnb Annual revenue: €53,844
- Gross rental yield: 12%
- Total Number of Airbnb Listings: 805
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): €560,000
- Airbnb Annual revenue: €49,001
- Gross rental yield: 8.75%
- Total Number of Airbnb Listings: 2,828
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): €550,000
- Airbnb Annual revenue: €44,031
- Gross rental yield: 8%
- Total Number of Airbnb Listings: 513
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): €595,000
- Airbnb Annual revenue: €43,677
- Gross rental yield: 7.34%
- Total Number of Airbnb Listings: 2,083
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): €575,000
- Airbnb Annual revenue: €41,414
- Gross rental yield: 8.50%
- Total Number of Airbnb Listings: 576
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): €450,000
- Airbnb Annual revenue: €39,242
- Gross rental yield: 8.72%
- Total Number of Airbnb Listings: 745
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): €330,000
- Airbnb Annual revenue: €33,059
- Gross rental yield: 10.01%
- Total Number of Airbnb Listings: 708
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €345,000
- Airbnb Annual revenue: €29,327
- Gross rental yield: 6.58%
- Total Number of Airbnb Listings: 880
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €295,000
- Airbnb Annual revenue: €24,917
- Gross rental yield: 8.45%
Source: Airbtics Dashboard
Conclusion
In summary, the Algarve Province’s rental market can help investors to obtain a good return on investment by owning an Airbnb listing in the cities mentioned above. There are plenty of cities in the Algarve that offer good investment opportunities and high revenue. Yet, it is worth mentioning that you still need to analyze your options carefully.
Now that you have a deeper understanding of the best places to Airbnb in Algarve, Portugal go ahead and check Airbtics’ short-term rental estimator. Maximize your profitability using the best Airbnb analytics tool now!
Short-Term Rental Data
Short-Term Rental Data
-
Quick Links
Best Places to Airbnb in Northern Territory: Where to invest in Darwin real estate market?
Last updated on September 5th, 2023best places to Airbnb in Northern Territory Key Takeaways The affordable real estate market, economic growth, and great living conditions …
Increase your RevPAR by analyzing guest demands
How to increase the daily rate of your Airbnb listing while keeping your occupancy rate? Our team has been doing a crazy experiment using Airbnb data for the last couple of months. We wanted to see if we can make Airbnb hosts charge 20-30% more daily rate while maintaining their occupancy rates and without investing a hefty fee.
Annual Airbnb Revenue in Seaside park new jersey, USA
Last updated on May 27th, 2024 Seaside Park, New Jersey| Airbnb Market Data & Overview | USA Seaside Park, New Jersey Airbnb Market Data & …
Annual Airbnb Revenue in Carnelian bay california, USA
Last updated on May 21st, 2024 Carnelian Bay, California| Airbnb Market Data & Overview | USA Carnelian Bay, California Airbnb Market Data & Overview USA …
Annual Airbnb Revenue in Swampscott massachusetts, USA
Last updated on May 27th, 2024 Swampscott, Massachusetts| Airbnb Market Data & Overview | USA Swampscott, Massachusetts Airbnb Market Data & Overview USA Is it …
Annual Airbnb Revenue in Des moines iowa, USA
Last updated on May 21st, 2024 Des Moines, Iowa| Airbnb Market Data & Overview | USA Des Moines, Iowa Airbnb Market Data & Overview USA …
