Where to invest? Regions with the highest returns on long-term rentals in Portugal

With the increase in demand for housing and the growth in rents, long-term rentals in Portugal have established themselves as a safe and profitable strategy for investors. But which regions offer the best returns in this segment? This article reveals the main destinations with the highest profitability in the country - and why it's important to consider more than just the big cities.

Lisbon and Porto: the classics are still going strong

Lisbon and Porto continue to be benchmarks in the rental market, especially in outlying areas, where purchase prices are more affordable but rents are still high. Areas such as Loures, Amadora, Odivelas, Matosinhos and Vila Nova de Gaia offer good returns, especially for those investing in one and two-bedroom apartments for young couples or professionals on the move.

Setúbal, Braga and Aveiro: cities on the rise

Outside the two big urban centers, cities like Setúbal, Braga and Aveiro have seen significant growth in rents and demand for housing.

• Setúbal combines proximity to Lisbon with lower prices and an excellent quality of life.
• Braga has stood out for its economic dynamism and young population.
• Aveiro, with its strong university and technological presence, is a smart choice for continuous rentals.

The growing demand for quality of life is leading many people to settle in inland regions such as Évora, Viseu and Covilhã, where the entry cost for the investor is lower and the return/price ratio can be very competitive.

In the Algarve, on the other hand, despite being known for its tourism, long-term rentals have been growing, especially in cities like Faro, Portimão and Lagos, where there is a shortage of housing for local workers.

The role of universities and technology hubs

Cities with a university presence or technology innovation centers - such as Coimbra, Leiria and Guimarães - also present consistent opportunities. In these places, the demand for stable rentals during the academic year guarantees constant occupancy, which contributes to a good rate of return.

Investing in long-term rentals is a solid way of earning passive income, as long as you choose the right location. Regions with economic growth, the presence of universities, good accessibility and competitive entry prices tend to offer the best returns. Being aware of these dynamics is essential for making strategic decisions.

If you want to find the best real estate investment opportunities in Portugal, IR Group is at your side. With market knowledge and a personalized approach, we help you build a profitable and sustainable portfolio. Talk to us and take the next step with confidence.