Updated: April 23, 2025
As we move though 2025, Portugal’s real estate market continues to attract investors from across the globe seeking high-yield investment opportunities.
While Lisbon has long been one of the top choices for investors – and continues to be – escalating prices and regulatory changes regarding short term rentals in Lisbon have been the catalyst for investors to look at other emerging markets in the Lisbon Metropolitan Area.
Shifting Focus: Looking Beyond Lisbon
Lisbon’s property prices have increased exponentially over the years, with the average asking price for the capital standing at €6,934. If you compare this to the Lisbon Metropolitan Area, you can see prices are much more affordable, clocking in at €4,935.
Alongside this, it is now impossible to secure an Alojamento Local (AL) license in much of Lisbon, which is required for you to rent out your property in the short-term. This has led foreign investors to explore alternative locations that offer both affordability, growth potential, and where it is possible to buy a property to rent out in the short term and secure strong investment returns.
While investing in Portugal real estate can be highly profitable, particularly if you invest in or around Lisbon. Below we delve into three attractive alternatives close to the capital.
Oeiras: An Emerging Tech Hub and Family Favorite
Oeiras has stepped firmly into the limelight in 2025, with the neighborhood, just to the west of Lisbon’s center, attracting a wealth of foreign investment. The Oeiras Valley Tech Park is attracting global companies and fostering a vibrant ecosystem for innovation, while close proximity to both Lisbon and the stunning beaches on the Portuguese Riveira provide the best of both worlds.
The fact that there are excellent international schools in the areas, such as the Oeiras International School and the International Sharing School Tagus Park mean that Oeiras is also becoming a well-known target for families to relocate to.
Rental prices in Oeiras average €16.40/m², as of Match 2025. Rental yields in Oeiras currently stand at 5.5 percent, translating to the fact that investors will be able to secure a nice return on their investment, whether through rentals or capital appreciation.
Lisbon South Bay: A Key Future Investment Hotspot
Lisbon South Bay has much to offer investors, and it’s highly likely that this area will see an explosion of interest in the coming years. Lisbon South Bay refers to the area on the other side of the Tagus River, where you can see the bright lights and traditional red-tiles houses of Lisbon on the opposite side of the river.
South of Lisbon, Almada, Seixal, and Barreiro – often referred to as Lisbon South Bay – presents an attractive mix of affordability and upscale potential.
The average asking price for properties in Almada stand at €3,314 per square meter, while for Seixal and Barriero, they clock in at €3,285 and €2,602, respectively, strikingly more affordable than property prices in the capital itself.
Rental yields are very high, standing at 6.6 percent in Almada, 7 percent in Seixal, and an impressive 7.8 percent in Barriero.
Infrastructure upgrades and mixed-use developments are driving up interest in Lisbon South Bay. Plus, residents have easy access to spectacular beaches that line the west coast, such as Costa da Caparica, and there are very good local restaurants serving incredible seafood with views of Lisbon as the backdrop. It is also very easy to get to Lisbon, whether via the Ponte 25 de Abril bridge or by boat. Lisbon South Bay is certainly a place to watch for the near future.
Cascais: Coastal Luxury Living
Cascais perhaps doesn’t need an introduction. For a blend of upscale living, reliable returns, and sweeping ocean views, Cascais remains hard to beat. Tourism demand remains strong, with increased interest in luxury properties, with Cascais’s reputation as a premier coastal enclave driving it rental market.
The Cascais real estate market is thriving. Should you opt to rent out your property short-term in Cascais, occupancy rates stand at 71 percent, with strong revenue potential. For investors prioritizing both capital appreciation and robust vacation rental performance Cascais is an attractive spot.
While property prices are on the higher end here, standing at €7,260, you’ll be entering one of the most highly sought after markets in Southern Europe. Rental yields are also quite high, standing at
Families will find outstanding schools in the area, such as St Geroge’s, St Dominic’s, and the International Christian School of Cascais. There is a total of 13, with a further three located to the north in Sintra. For families, you could be in no better spot. You have some of the best beaches in Portugal on your doorstep to enjoy water sports activities, the famous Sintra-Cascais Natural Park close at hand for hiking and biking, and the capital of Lisbon a short 30-minute drive away.
Why These Locations Are Stepping Into the Limelight
With many investors finding prices in Lisbon high and with it being difficult to buy a property to rent out given the current suspension of AL licenses for much of the city, we are seeing investors increasing seeking opportunities outside Lisbon, while still being within striking distance of the capital.
As Oeiras, Cascais, and the general South Bay region continue to be open to AL licenses, we believe that these locations will have high potential for capital appreciation and are high-yield alternatives to Lisbon.
Goldcrest: How We Can Help You
Goldcrest is a buyer’s agent that is based in Lisbon. We provide expert, impartial advice on real estate investments and how to buy property in Portugal. From scouting out the perfect property through to property acquisition, we have you covered throughout the process.
If you are looking to purchase property in Portugal, don’t hesitate to get in touch. Our team of skilled experts is available to solve all your real estate doubts, helping you with the property search and offering insightful expertise and strategic advice.
Why choose Goldcrest?
- Local knowledge: With offices located across Portugal, our presence nationwide allows us to assist you personally across the country.
- Independent service: As an independent buying agent, we do not represent any development or project. Our service is entirely tailored toward each individual client, providing you with everything you need to secure the perfect property at the best possible price. As an impartial advisor on the market, we work solely on behalf of our client and provide a service tailored to your needs and requirements.
- Streamlined process: Our real estate agents speak English and Portuguese, and our service is completely focused on providing you with a hassle-free buying experience, saving you time.
- Experienced team: Our expert real estate team has a vast local knowledge of the Portuguese property market. We have cutting-edge technology and metasearch tools at your disposal to provide full market coverage, ensuring the best investment choices and negotiated prices.
- Network of partners: We have a close network of partners, including lawyers, property management services, builders, architects, designers, and landscape gardeners, again saving you time and hassle by providing you with trusted experts in their field of work.
