Property

June 11, 2021

Reading Time: 3 min

Real estate in Portugal: cost of renting three-bedroom apartments in 2021

Investors buy real estate in Portugal in order to obtain a residence permit. Property can be rented out and get additional income up to 7% per annum. We tell you how much it costs to rent an apartment with three bedrooms in different regions of Portugal.

Elena Ruda
Elena Ruda

Chief Development Officer in Immigrant Invest, lawyer

Residence permit in Portugal by investment: three-bedroom apartments for rent

Real estate in Portugal: cost of renting three-bedroom apartments in 2021

Prices for the purchase of Portuguese real estate are increasing by an average of 7% per year, according to analysts from the auditing company PwS.

Rental rates for real estate are also on the rise. For example, in January 2020, the average rental price of rental housing increased by 3.4 % compared to January 2019.

€987

The average cost of renting a three-bedroom apartment

Portuguese real estate prices rose more slowly in 2020 because of the crisis against the backdrop of the coronavirus pandemic. But already in the first quarter of 2021, the cost of residential real estate rose by 17,4% compared to the first quarter in 2020. The growth will continue in the second half of 2021. The economy has just begun to recover from the crisis.

Rent costs in different regions of Portugal

Portugal is divided into seven regions. Popular tourist destinations are the major cities of Lisbon and Porto, the Algarve resort area, and the Azores.

The average cost of renting a three-bedroom apartment in Portugal

Region

City ️

Price

Lisbon region

Cascais

€2250

Lisbon region

Lisbon

€1542

Northern region

Porto

€1182

Algarve

Faro

€1058

Madeira

Funchal

€940

Northern region

Braga

€873

Algarve

Portimao

€863

Central region

Coimbra

€805

Central region

Aveiro

€775

Alentejo

Evora

€775

Azores

Ponta Delgada

€720

Alentejo

Santarem

€690

Data source — Numbeo.com

Why investors choose real estate more often

Real estate in Portugal is a liquid asset and the most sought-after investment option under the residence permit program.

326 investors received a residence permit in Portugal in the first four months of 2021. That’s a 20% increase over the same period in 2020.

73% of investors chose the option with the purchase of real estate from €500,000 — the total amount of transactions amounted to 129.6 million euros. Another €28.6 million was earned by Portugal on the option to buy properties under renovation.

Investors plan the purchase of real estate based on their goals and budget. Some buy real estate in the financial centers of the country, Lisbon and Porto, for long-term residence with family. Other investors choose real estate for rent in the resort areas — the Algarve, Madeira, the Azores.

The conditions of the program will change on January 1, 2022. The minimum amount of investment will increase, and real estate will be allowed to buy only in the Azores, Madeira, and the interior regions of the country. In major cities and resorts will be possible to buy only commercial real estate and objects under restoration.

While the old rules are in force, investors can buy real estate in any city in Portugal, such as Lisbon and Porto.

What an investor will get when buying property in Portugal

The investor will receive a Golden Visa of Portugal, a country that is part of the European Union. A residence permit in Portugal is issued for an investment of €350,000 or more. The program provides eight options for investment in the country’s economy. The term of registration of the residence card takes from two months.

Investment options under the residence permit program in Portugal

Option

Investment

Buying real estate

From €350,000

Deposit in a Portuguese bank

From €1 million

Buying government stock

From €1 million

Purchase of units in investment funds

From €350,000

Investments in scientific activities

From €350,000

Investing in cultural heritage

From €250,000

Creating a company with a central office in Portugal and 5 workplaces

From €350,000

Opening a business and creating at least 10 jobs

The amounts are not specified in the law

At the same time as an investor, family members of the investor can obtain a residence permit in Portugal. Holders of a golden visa live in the country, conduct business and enjoy a preferential tax period for the first 10 years. Residents are also free to travel within the Schengen area.

In June 2021, Portugal partially lifted restrictions on entry: the island of Madeira is open to tourists. Anyone who tests negative for coronavirus can visit the country. Before the trip, it is necessary to fill out a questionnaire on the website madeirasafe.com.

Residence permit in Portugal by investment: the island of Madeira

Madeira is a picturesque archipelago in the middle of the Atlantic Ocean, an autonomous region of Portugal

Immigrant Invest is a licensed agent of the residence permit program in Portugal. If you want to move to Portugal and travel to Schengen countries without visas, seek advice from investment program experts.