News

Buying a house to rent in Portugal yields less, but the risk is lower

In the short term, attention is firmly on the rental market as a way of easing the housing access crisis in Portugal. As part of efforts to increase the supply of homes available, the Government is keen to give landlords more incentives to rent out their properties, including reducing the IRS (personal income tax) to 10% under the new tax package and speeding up eviction procedures in cases of unpaid rent.

Only One in Three Homes for Sale Under €300,000

Market data revealed a severe contraction in affordable housing stock across Portugal. Just 36% of advertised homes were priced below €300,000—down from 42% a year prior. Properties priced between €300,000 and €600,000 now form the largest single share of available market inventory (44%), putting added pressure on middle-income buyers in urban centers like Greater Porto.

Launched 45 new townhouses in Porto

The residential project in Vale Pisão, developed by Norfin Serviços, represents an investment of over €25 million.

Portugal real estate market dominated by large homes

The most recent data from the Imovirtual portal, released on 11 May 2026, shows that the real estate market in Portugal is undergoing a structural transformation, with a heavy concentration of medium- and large-sized homes.

House prices in Portugal increase 12% in March hitting another new record

House prices in Portugal rose 12% in March compared to the same month in 2025. According to the idealista price index, buying a house cost €3,107 per square meter (euros/m2) at the end of March, considering the median value, representing a new historical high, reached for the fifth consecutive month. In quarterly terms, prices increased by 2.9%.

Real estate now captures almost half of foreign investment in Portugal

Foreign investors poured €3.9 billion into Portugal’s property market in 2025 — a 10% increase over 2024 and a new record, according to the Bank of Portugal (BdP).