Rental Yields in Portugal Q2 2025: A Landlord’s Perspective

In Q2 2025, Portugal’s average gross rental yield declined slightly to 4.57%, down from 4.96% in Q4 2024. Despite this shift, several regions continue to offer promising investment opportunities for landlords. Cities like Sintra, Setúbal, and Vila Nova de Gaia are outperforming the national average, with yields exceeding 6% in some property categories. In contrast, high-demand areas such as central Lisbon continue to post lower yields, with averages below 4% due to steep property acquisition costs.

Sintra led with the highest yields across multiple unit types, including a notable 6.34% return on 3-bedroom apartments. Setúbal also showed strength with a 5.08% average, particularly attractive for investors seeking value outside major metro areas. In Porto, specific districts like Matosinhos and Gaia offered returns above 5%, despite the overall city yield settling at 4.52%. Faro, Braga, and Aveiro remained steady mid-tier performers, providing yields in the 4.5%–4.8% range. The Lisbon market remains competitive, but rental profitability is now highly dependent on smaller units, with studios and one-bedrooms providing the highest returns.

The report, based on Idealista and Global Property Guide data, tracks both asking rents and property prices to calculate gross yield. It also reminds investors that net yields—what landlords actually earn—tend to be 1.5% to 2% lower after taxes, maintenance, and other costs. As rental dynamics evolve across Portugal, landlords should evaluate regional markets carefully and align their strategies with shifting tenant preferences, rising operational expenses, and emerging investment hotspots.
https://www.globalpropertyguide.com/europe/portugal/rental-yields