Buying a house to rent yielded 7.2% in Q2 2024.

Profitability of buying a home to rent out has increased.

Gross profitability of buying a house in Portugal to rent out in the market increased in the 2nd quarter of 2024.  

The increase was 0.3 percentage points (p.p), rising from 6.9% in the same period of 2023 to 7.2%. It is still a value 0.5 p.p higher than the housing yield in the second quarter of 2020, of 6.7%.  

The data was collected by Idealista and shared by Notícias ao Minuto, analyzing the profitability by district capitals.

According to the data, Castelo Branco is the city where it is most profitable to buy a house for rental investment, with a return of around 9.1%.  

Next, come the cities of Santarém (8.1%), Coimbra (6.8%), Leiria (6.5%), Évora (6.3%), Setúbal (5.9%), Porto (5.8%), and Viseu (5.7%).

Regarding the lowest housing profitability, it is obtained by homeowners who buy houses for rent in Lisbon (4.6%), Funchal (5%), Faro (5.1%), Aveiro (5.5%), and Viana do Castelo (5.6%).  

Not only in housing, but also in other real estate products at the national level there was an increase in profitability. Offices guaranteed a return of 9.3%, stores of 5.1%, and garages of 5.3%.

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