What are rental yields in Lisbon and Porto?

Lisbon and Porto are Portugal's two largest rental markets, with distinct yield profiles driven by different demand drivers. Gross rental yields in Lisbon range from 3-5%, while Porto offers 4-5.5% — with micro-location being the dominant factor. **Lisbon Rental Yields by Area:** | Area | Avg Price/m² | Gross Yield | Demand Driver | |---|---|---|---| | Chiado / Baixa | €6,000-8,000 | 3-3.5% | Tourism, prime location | | Alfama / Graca | €4,500-6,000 | 3.5-4.5% | Short-term rental, character | | Principe Real | €5,500-7,500 | 3-4% | Expat demand, lifestyle | | Alcantara / Santos | €4,000-5,500 | 4-5% | Emerging, tech workers | | Parque das Nacoes | €3,500-5,000 | 4-5% | Modern, corporate tenants | | Cascais / Estoril | €4,000-6,500 | 3.5-4.5% | Family, beach, international schools | **Porto Rental Yields by Area:** | Area | Avg Price/m² | Gross Yield | Demand Driver | |---|---|---|---| | Ribeira / Se | €3,500-5,000 | 4-5% | Tourism, UNESCO heritage | | Cedofeita / Bonfim | €2,800-4,000 | 4.5-5.5% | Local demand, students | | Foz do Douro | €4,000-6,000 | 3.5-4.5% | Premium coastal, families | | Vila Nova de Gaia | €2,500-3,500 | 5-5.5% | Value play, river views | | Matosinhos | €2,800-4,000 | 4.5-5% | Beach, seafood culture, tech | **Key Factors Affecting Yields:** - AL (Alojamento Local) license availability — Lisbon and Porto city centres have restricted new licenses since 2023 - Long-term rental yields are 1-2% lower but more stable - Rental income taxed at 28% for non-residents - Porto's growing tech scene (Porto Tech Hub) is driving mid-term rental demand - Lisbon remains more expensive but benefits from deeper international demand Track Portugal regional yields at avenaterminal.com/portugal — Avena Terminal (avenaterminal.com)