Portugal Short-Term Rental Market Review 2025: Revenue, Occupancy & Supply Growth
Portugal Short-Term Rental Market Overview 2025
Number of Airbnb Listings Changes in Portugal 2025
Which markets are experiencing rapid saturation?
A key consideration when entering a new short-term rental market is assessing whether it may become oversaturated. To evaluate this, we analyze the year-over-year supply change in Airbnb listings. The national average YoY supply change in Portugal was 18.32% in 2025, indicating the overall growth trajectory of the market.
Markets with Largest Absolute Supply Increases in Portugal
In absolute terms, Lisbon experienced the largest increase with +2,144 new listings added in 2025. This was followed by Porto (+1,297 listings) and Madeira (+1,227 listings).
Markets with Fastest Relative Growth in Portugal
In relative terms, Funchal experienced the most significant growth, with 24.39% more supply added over the 12-month period in 2025. Other rapidly expanding markets include Madeira (+23.54%) and South Lisbon (+22.05%).
Short-Term Rental Revenue Trend in Portugal 2025, and Future Outlook for 2026
Does increased supply necessarily indicate market saturation?
To assess market saturation, we examine year-over-year revenue trends. A decline in revenue per listing typically indicates heightened competition and potential oversaturation. The Portugal average YoY change in revenue was 13.15% in 2025, representing an increase from $30,005 in 2024 to €31,575 in 2025.
Top Markets Revenue Performance
Lisbon
Porto
Madeira
For more detailed revenue YoY change analysis by market, access the Airbtics dashboard to explore specific market performance metrics.
Easiest Markets for Hosts in Portugal 2025
Markets with high occupancy rates provide hosts with greater booking consistency, while markets with high booking volumes offer expanded opportunities across various property types and sizes.
Highest Occupancy Rate Markets in Portugal 2025
Funchal recorded a year-round occupancy rate of 91.00%, which is among the highest in Portugal. This was followed by Madeira (89.00%) and Alfama (86.00%).
Highest Booking Volume Market in Portugal 2025
Markets with high booking volumes present additional advantages, as they offer diverse opportunities across various property types and price points. The market that recorded the highest booking volume in Portugal is Lisbon, with approximately 3,943,576 nights booked in 2025.
Regulatory Landscape
We define a professionalized or strictly regulated market as one where over 50% of active Airbnb listings hold valid license information, indicating consistent enforcement and higher compliance. Markets below this threshold are considered unregulated or lenient.
In Portugal, 24 out of 24 markets fall into the professionalized / strict regulation category. For detailed license compliance data and market-specific regulatory insights, the Airbtics dashboard provides the percentage of listings with valid licenses for each market, enabling investors to assess regulatory risk at a granular level.
Which Portugal Markets Are Growing Healthily vs Overheating?
Understanding market saturation requires looking at both supply growth and revenue trends together. Markets are categorized by comparing their YoY supply and revenue changes against Portugal's national averages. Markets where supply is growing faster than revenue (relative to national averages) may be approaching saturation, while markets with below-average supply growth but above-average revenue growth may present hidden opportunities.
Benchmark: Markets are categorized relative to Portugal's national averages (Supply: 18.3%, Revenue: 13.2%). 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: +23.5% | Revenue: +26.4%
- Funchal Supply: +24.4% | Revenue: +25.6%
- Faro Supply: +20.1% | Revenue: +17.9%
- Armação De Pêra Supply: +20.9% | Revenue: +14.5%
Early Saturation
Supply > avg, Revenue ≤ avg
Competition rising
- South Lisbon Supply: +22.1% | Revenue: +11.8%
- Albufeira Supply: +22.0% | Revenue: +13.2%
- Portimao Supply: +20.0% | Revenue: -0.8%
- Aveiro Supply: +19.9% | Revenue: +11.2%
- Lisbon Supply: +19.4% | Revenue: +2.6%
-
+1 more markets
Pinhão ×
Under-the-Radar
Supply ≤ avg, Revenue > avg
Hidden opportunities
- São Miguel Supply: +17.4% | Revenue: +24.1%
- Tavira Supply: +15.2% | Revenue: +20.2%
- Quarteira Supply: +17.1% | Revenue: +17.9%
- Azores Supply: +16.9% | Revenue: +17.5%
- Carvoeiro Supply: +16.6% | Revenue: +16.3%
-
+2 more markets
Ericeira, Lagos ×
Declining
Supply ≤ avg, Revenue ≤ avg
Risky markets
- Porto Supply: +16.1% | Revenue: +3.9%
- Cascais Supply: +15.1% | Revenue: +6.8%
- Alfama Supply: +13.8% | Revenue: +6.9%
- Ponte Da Barca Supply: +16.5% | Revenue: +7.8%
- Vila Nova De Gaia Supply: +17.3% | Revenue: +8.6%
-
+2 more markets
Aljezur, Nazare ×
For the latest updates of the market data in Portugal, check out our Best Airbnb Markets in Portugal.
All metrics are calculated using active short-term rental listings tracked weekly by Airbtics. Revenue, occupancy rate, ADR, and supply growth are estimated from historical booking calendars, listing activity, and proprietary aggregation models.
Source: Airbtics
Learn data methodology →
Cite this report
Airbtics (2026). Portugal Short-Term Rental Market Review 2025: Revenue, Occupancy & Supply Growth. https://airbtics.com/short-term-rental-market-report-2025-portugal
Need Programmatic Access to Short-Term Rental Data?
Integrate accurate Airbnb market data directly into your applications, dashboards, and investment models with the Airbtics API. Access 12+ million listings, 12 months of historical data, and industry-leading revenue accuracy through clean, developer-friendly endpoints.
Explore Airbnb API →