Portugal has become one of the leading European countries for property investment. Whether you’re looking for a property to let out on a permanent basis, a holiday home which can also draw a rental income, or you have your eye on retirement, the country offers a wealth of regions to choose from.
However, purchasing property in an emerging property hotspot can allow you to enjoy the benefits of long-term price growth and great rental yields. We explore some of the best upcoming markets in Portugal.
Around an hour north of Lisbon, this coastal haven is perhaps best known for its surfing. However, the area offers much more than a place to ride the waves, including stunning beaches, fresh seafood, and a charming medieval fort.
With a laid-back and authentically Portuguese ambience, Peniche attracts a wealth of visitors looking to enjoy a slice of life in this traditional charming seaside location.
Given its popularity as a surfing destination, Peniche offers excellent potential for holiday rentals. Property prices here have been steadily on the rise, but it’s still possible to find good deals compared to other coastal areas.
In addition, Peniche is within easy reach of Lisbon, and less than two hours from Porto, making its location one that can command demand from domestic tenants who wish to enjoy a quieter pace of life, but with easy access to the city.
A city located around a 35-minute drive south of Lisbon, Setúbal is set against the backdrop of the Arrábida mountains and is near some of Portugal’s most beautiful beaches. It’s also known for its rich history, seafood, and the nearby Tróia Peninsula.
Setúbal has been deemed the second fastest growing real estate market in Portugal; however, great deals are still to be found for investors.
The city is already the local “best-kept secret” with many Portuguese residents choosing to take weekend breaks here. It’s also growing in popularity with tourists looking to explore the Arrábida National Park. These two markets offer investors an ongoing opportunity for short-term rentals.
In addition, the region’s close proximity to Lisbon is also enticing to those who want to work in the city, but enjoy the green spaces of Setubal. This makes it an attractive location for long-term let investments.
Vila Nova de Gaia
Situated on the southern banks of the Douro River opposite Porto, Gaia is famed for its port wine cellars and stunning river views. The Dom Luís I Bridge connects Gaia to Porto, making the location ideal for those who work in the city or visitors who want to enjoy Porto from a quieter location.
As tourism in Porto has surged, Gaia has seen a parallel rise in visitors. However, for property investors, Vila Nova de Gaia offers more than holiday let demand.
Its close proximity to Porto means that many professionals are also looking for long-term lets in the area. Additionally, Porto is home to an increasing number of international students looking for affordable accommodation with easy access to its teaching institutes.
A parish in the municipality of Oeiras, Algés is situated to the west of Lisbon. It’s a vibrant area with a mix of modern and traditional architecture and has excellent transport links to central Lisbon.
This location has seen excellent property price growth, with apartment prices in Algés rising by 24% over the past twelve months.
Algés is becoming increasingly popular among those who work in Lisbon but prefer a quieter residence outside of the busy city centre. The demand for rental properties is growing steadily, making it a promising area for property investors.
Whether you’re looking for a long-term tenant, to make the most of short-term vacation rentals, or you simply want to own a holiday home in Portugal, these areas offer it all. If you’re interested in property investment in Portugal, get in touch to find out more about one of these lucrative emerging markets.
Contact us today to discover your ideal property.