Last updated on June 21st, 2023
best places to invest in portugal
Key Takeaways
• Lisbon’s bustling tourist market, strong economy, and countless job opportunities allow hosts to earn a good passive income by owning short-term rental properties.
• Discover the benefits real estate investors can enjoy when buying a property investment in Lisbon, Portugal.
• We’ll feature the top 10 most profitable neighborhoods in Lisbon along with their recommended property types and Airbnb data.
Introduction
In the western Iberian Peninsula on the Atlantic Ocean and the River Tagus lies the cosmopolitan capital city of Portugal, Lisbon. The city itself is a fascinating destination that offers a lovely climate and friendly environment as well as a rich cultural and historical heritage.
Lisbon is one of the top 20 destinations included in the Live and Work Anywhere initiative of Airbnb. Additionally, it’s also a trending international destination that US and Canadian travelers are searching for on Airbnb this spring 2023!
In this article, we’ll reveal the best places to invest in Airbnb in Lisbon, Portugal, and some of the expectations when investing in real estate in this city. Eager to learn more? Continue reading!
Why invest in Lisbon real estate?
Investing in real estate in Lisbon is an amazing way of earning a passive income since it offers a good return on investment to property investors. But what advantages can Lisbon offer to real estate investors?
Check out some of the reasons why buying Airbnb investment properties in Lisbon is an excellent idea:
Attractive real estate market
While Lisbon’s real estate market is competitive, its prices still are cheaper if we compare it to other major cities located in Europe. Investors can still find a variety of property types with affordable prices that offer high returns. The median housing value in Lisbon is currently at €5,178/m2.
Furthermore, the tourist market in Lisbon has been steadily recovering after the pandemic. There’s a high tourist flow in Lisbon that has consequently helped the city to maintain a strong rental market since the demand is substantial.
Wealthiest region in Portugal
Lisbon is the economic hub of Portugal which represents around 36% of the national GDP and 29% of the employment market. This cosmopolitan city is home to the most number of headquarters of multinationals and startups operating in the country. Thanks to this, the city offers a solid labor market with countless of job opportunities.
Additionally, Lisbon has become one of the fastest-growing tech ecosystems and many renowned corporations such as Microsoft and Google are settled here.
A great place to live
Lisbon is a sustainable and inspiring city that offers a high quality of life with a reasonable cost of living! In Lisbon, residents have access to a high-quality education, a stable job market, a reliable public transportation system, an ultra-high-speed internet connection, and plenty of recreational facilities.
With it’s low crime rate, Portugal’s capital city is also regarded as one of the safest capital cities in Europe since, so exploring the surroundings is truly an enjoyable experience.
Exciting recreational opportunities
Lisbon offers a wide array of leisure and entertainment options, so it’s almost impossible for travelers not to find something that will suit their taste. Here, you will experience a comfortable and warm atmosphere while exploring all corners of the city.
This picturesque city owns riveting culture, history, and traditions with plenty of World Heritage monuments, aquariums, museums, and galleries. You can also enjoy Lisbon’s lively nightlife, diverse gastronomy, and extensive green areas. Moreover, if you crave a natural tan, the city also offers easy access to sandy beaches with the best sunsets!
Additionally, we should highlight that Lisbon welcomed 5.4M overnight visitors as of 2022! This will surely catch the attention of investors who are aiming to cater to tourist accommodations.
Is Airbnb Profitable in Lisbon?
Be at ease because Airbtics assures you that investing in real estate in Lisbon 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 €45,018 and a median occupancy rate of 95% for operating a 2-bedroom property in Lisbon as confirmed by Airbtics’ data. With over 10,173 Airbnb listings and a low seasonality of 36%, Lisbon is surely a catch to property investors!
Best Places around Lisbon, Portugal to Buy Property
Lisbon is the largest city in Portugal and is divided into various designated districts. Hence, the profitability in each district is consequently different, so it can be a challenge to choose the best place to set up your Airbnb property in Lisbon.
Check out the best neighborhoods in Lisbon that are recommended for starting an Airbnb business:
1. Baixa
- Total Number of Airbnb Listings: 699
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): €780,000
- Airbnb Annual revenue: €70,556
- Gross rental yield: 9.05%
2. Chiado
- Total Number of Airbnb Listings: 206
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €890,000
- Airbnb Annual revenue: €58,548
- Gross rental yield: 6.58%
3. Principe Real
- Total Number of Airbnb Listings: 369
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €650,000
- Airbnb Annual revenue: €48,884
- Gross rental yield: 7.52%
4. Bairro Alto
- Total Number of Airbnb Listings: 534
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €430,000
- Airbnb Annual revenue: €45,513
- Gross rental yield: 10.34%
5. Avenida Novas
- Total Number of Airbnb Listings: 329
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €650,000
- Airbnb Annual revenue: €42,293
- Gross rental yield: 6.51%
6. Anjos
- Total Number of Airbnb Listings: 516
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €
- Airbnb Annual revenue: €41,315
- Gross rental yield: 12.71%
7. São Vicente
- Total Number of Airbnb Listings: 785
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €399,900
- Airbnb Annual revenue: €40,784
- Gross rental yield: 10.20%
8. Pena
- Total Number of Airbnb Listings: 294
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €570,000
- Airbnb Annual revenue: €40,442
- Gross rental yield: 7.10%
9. Alfama
- Total Number of Airbnb Listings: 881
- Best bedroom size: 1 bedroom
- Median property price (1 bedroom): €247,500
- Airbnb Annual revenue: €31,588
- Gross rental yield: 12.76%
10. Estrela
- Total Number of Airbnb Listings: 612
- Best bedroom size: 1 bedroom
- Median property price (1 bedroom): €310,000
- Airbnb Annual revenue: €31,055
- Gross rental yield: 10.02%
Takeaway
In summary, Lisbon rental market can help investors to obtain a good return on investment by owning an Airbnb listing. There are plenty of neighborhoods and nearby cities in Lisbon with great rental yields and annual 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 invest in Airbnb in Lisbon, Portugal go ahead and check Airbtics’ short-term rental calculator. Stand out among your competitors by taking the next step to maximize your profitability using the best Airbnb analytics tool!
