Thinking about buying an investment property in Portugal with a mortgage? In 2025, Portugal remains a top choice for international buyers, thanks to its steady real estate market, friendly buying process, and good rental returns in key cities and coastal regions. Whether you’re looking for a place in a bustling city or somewhere quieter by the sea, Portugal has a mix of options for different budgets and goals. Here’s a look at the top places to consider if you want to invest in property with financing this year.

Key Takeaways

• Lisbon offers strong rental demand but has higher prices than most other regions.
• Porto is popular for its historic charm and more affordable entry points for buyers.
• The Algarve attracts holidaymakers year-round, making it ideal for short-term rentals.
• Smaller cities like Braga, Aveiro, and Évora are gaining attention for their lower costs and growth potential.
• Securing an investment property Portugal mortgage is possible for foreigners, but it’s best to get expert help to understand local rules and rates.

1. Lisbon

Lisbon, as the capital of Portugal, stands out as a top destination for property investment in 2025. The city’s mix of old-world neighborhoods and new developments draws a wide range of investors. A strong job market, leading universities, and constant tourist flow keep rental demand steady year-round.

Here is a quick look at Lisbon’s median property prices as of early 2025:

Lisbon’s popularity creates some clear investment benefits:

• Competitive rental yields due to high demand for both short- and long-term leases.
• A wide choice of property types, from renovated apartments in Baixa and Chiado to new developments in Parque das Nações.
• Strong resale value, with prices rising steadily and demand remaining high among both locals and international buyers.

Buyers are attracted by Lisbon’s combination of economic growth, safe living, accessible amenities, and cultural flair, all of which support long-term investment stability.

Whether you’re targeting short-term rentals or seeking a home with strong potential for long-term value, Lisbon is worth exploring. Ready to start? Contact Portugal Mortgage for personal advice on financing and securing the right property in Lisbon.

2. Porto

Porto stands out as a top spot for real estate investment in Portugal thanks to its blend of tradition, a thriving city atmosphere, and a price advantage over Lisbon. Property buyers in Porto enjoy lower entry prices with strong rental and capital growth potential.

The city’s most sought-after neighborhoods include:

• Ribeira: Known for waterfront charm and UNESCO status.
• Foz do Douro: Premium living near the beaches.
• Bonfim: Popular among new investors for its affordability.

Here’s a look at typical property prices as of Q1 2025:

Short-term rentals are doing well due to year-round tourism and the city’s growing popularity with remote workers. Long-term lets are also in demand, especially with a rising student population and relocations from across Europe. Areas like Porto for cultural heritage give you access to a lively market with apartments that appeal to both locals and international tenants.

Porto’s mix of high tourism, a thriving student market, and unmatched cultural appeal make it a smart place to look for rental returns and long-term property growth.

Ready to move forward? Talk to Portugal Mortgage now for expert support arranging financing in Porto—even if you’re buying from abroad.

3. The Algarve

The Algarve stands out as one of Portugal’s best regions for property investment thanks to its warm weather all year, scenic beaches, and established tourism industry. This area is not just valued for its lifestyle—it’s favored by investors looking for reliable rental returns and long-term growth.

High demand from both tourists and expats continues to drive robust rental yields in the Algarve. Investors can pick from a range of property types, from vacation apartments to luxury villas and modern townhouses. Whether you’re looking to buy for rental income or as a holiday retreat, the Algarve provides options in all price brackets.

Here’s how some of the prime spots in the Algarve compare by price and investor appeal in 2025:

Key reasons to consider the Algarve:

• Variety of properties for every budget
• International community with strong English proficiency
• Well-developed infrastructure, from airports to hospitals
• High short-term rental yields due to tourism

Many buyers are drawn to the Algarve’s stability, great weather, and proven track record of attracting year-round visitors, making it an easy choice for first-time and experienced investors alike.

If you’re serious about finding the best opportunities, check out a list of the top Algarve investment locations to see where your capital will work hardest.

Ready to explore financing options for a property in the Algarve? Contact Portugal Mortgage for a tailored quote and expert advice on your next steps.

4. Cascais

Cascais is one of Portugal’s most sought-after spots for property investment—especially for those planning to finance their purchase. This scenic coastal town combines luxury living with close proximity to Lisbon, making it a popular choice among international buyers and families.

Investment Advantages in Cascais:

• Prime location just 30 minutes from Lisbon’s city center.
• Strong demand for both holiday rentals and long-term leases.
• Upscale lifestyle with access to golf courses, fine dining, and sandy beaches.
• Safe, family-oriented environment and vibrant community.

The property market in Cascais primarily features villas and townhouses. These homes attract buyers who value outdoor space, privacy, and quick travel to the capital. While the cost of housing is higher than the national average, the area’s appeal means properties often retain their value and deliver stable returns. The average price per square meter in Cascais as of early 2025:

Families love Cascais for its relaxed pace, acclaimed international schools, and countless options for outdoor activities.

It’s a strong market for investors looking to balance lifestyle with sound financial opportunities. If you’re considering purchasing a home with home financing in this coastal region, you’ll want to evaluate loan options carefully and factor in property taxes and ongoing costs. For more on the perks of living here, explore details about Cascais’ unique qualities.

Thinking of placing your investment in Cascais for 2025? Contact Portugal Mortgage for straightforward guidance on financing options tailored to your needs.

5. Setúbal

Setúbal is increasingly standing out as a smart choice for property investors seeking real value just outside Lisbon. This coastal city is fast gaining attention for its strong growth prospects, affordable entry prices, and access to both urban life and natural beauty.

Located only about 30 minutes south of Lisbon, Setúbal appeals to buyers who want proximity to the capital without the steep price tag. In recent years, demand has grown thanks to its lively culture, fresh seafood, and outstanding beaches along the Sado River and Atlantic coastline. These features draw tourists and long-term renters alike, supporting both buy-to-hold and short-term rental strategies.

Key reasons Setúbal works for investors:

• Lower property prices compared to Lisbon or Cascais
• Rising interest from foreign and domestic buyers
• Strong local tourism with high rental demand
• Easy access to highways and public transport
• Expanding amenities, from schools to marinas

The blend of affordability, location, and lifestyle makes Setúbal one of the best up-and-coming areas for investment near Lisbon. Properties here can suit holiday lets, family rentals, or your own pied-à-terre, all with robust long-term upside.

Before making a decision, consider the right mortgage for your strategy, especially as different loan products may apply if you’re focused on vacation or rental property. If you’re ready to invest in Setúbal or have questions about financing options in Portugal, contact Portugal Mortgage today for expert guidance and a tailored plan.

6. Évora

Évora stands out in the Alentejo region for property investment—especially if you’re searching for lower entry costs and long-term upside. Its reputation as a UNESCO World Heritage city is real. The winding streets and historic architecture constantly attract tourists, academics, and culture fans. Évora is gaining popularity among early movers and international buyers looking to step into Portugal’s property market without Lisbon or Porto price tags.

Average property prices in Évora are still accessible compared to urban centers:

Here’s why Évora makes sense for investment this year:

• Robust demand for vacation rentals thanks to steady tourism.
• Lower purchase prices make buy-to-let or renovation projects more viable.
• Local authorities are supporting new residential construction in rural zones, offering a chance for strong appreciation.
• Stable rental yields, attractive for both short- and long-term lets.

In 2025, Évora’s market offers an opportunity for investors shut out by Lisbon’s affordability limits. Early investment here can provide both solid cashflow and potential capital growth over the next decade.

If you’re considering financing, Portuguese banks offer very similar mortgage terms to non-residents as locals, typically requiring a 30% deposit and strong due diligence. Working with a mortgage broker early can smooth the process and help clarify all eligibility points before negotiations.

Évora’s combination of heritage, affordability, and supportive policies makes it a strategic spot if you’re looking for growth beyond crowded coastal cities. Thinking of starting your investment journey in Évora? Reach out to Portugal Mortgage now for practical guidance and quick, friendly support.

7. Braga

Braga is quickly becoming a top spot for mid-budget property investors in Portugal. The city stands out with its below-average prices and strong rental yields. With an average property price of around €1,680 per m² in Q1 2025, Braga is more affordable than Lisbon or Porto, attracting those priced out of larger cities.

Here’s why Braga is drawing interest:

• Popular for student housing: Braga is a major university hub, so demand for rentals stays high year-round.
• Lower entry point: The cost to buy is much less than Lisbon or coastal Algarve, making it a smart choice for those starting out.
• Cultural and economic growth: Braga’s tech and services sectors are growing, fueling job creation and economic stability.

Properties in Braga offer a solid mix of stable rental demand and long-term appreciation potential, especially as more people look outside Portugal’s biggest cities for both affordability and growth.

When looking at the investment opportunities across Portugal, Braga’s mix of city energy, lower prices, and strong rental demand makes it a highly practical option.

If you’re considering financing for your investment in Braga, let Portugal Mortgage guide you through your options. Contact us today to get expert assistance tailored to your goals.

8. Aveiro

Aveiro stands out as a smart choice for property investors who want the energy of a growing city and more approachable prices. Nestled on Portugal’s Silver Coast, Aveiro is often called the "Venice of Portugal" thanks to its picturesque canals. This city has been catching the eye of both locals and foreign buyers who feel priced out of Lisbon and Porto.

Aveiro’s market is gaining traction among mid-budget investors, offering comparable rental yields to larger cities. A big attraction here is the large student population, given that the University of Aveiro is one of the country’s leading institutions. This means steady demand for long-term rentals and short-term lets, especially in the center and popular student neighborhoods.

Why Invest in Aveiro:

• Competitive property values compared to Lisbon or Porto
• Strong rental market thanks to student and tourist demand
• Ongoing city improvements and attractive lifestyle

Here’s a look at average price points compared to other Portuguese cities (Q1 2025):

With steady property value increases expected across Portugal in 2025, Aveiro offers upside—especially for buyers using financing options to enter the market with less upfront capital.

If you’re considering university towns, cities with growth, or mid-budget rentals, Aveiro deserves a closer look. Reach out to Portugal Mortgage for tailored mortgage solutions and to explore the latest listings in Aveiro before prices move higher.

9. Nazaré

Nazaré, set on Portugal’s Silver Coast, is catching attention as an emerging spot for property investment. Known for its stunning ocean views and authentic Portuguese vibe, it draws both tourists and people looking for a place that still feels local. Homes here are more reasonably priced compared to the bigger cities, making it easier to start investing if your budget isn’t huge or you’re securing a mortgage with financing.

Properties in Nazaré are consistently gaining value thanks to the area’s growing popularity, strong rental market, and the year-round appeal of its beaches. Short-term vacation rentals are in demand, especially from surfers and families looking for a relaxed break. This helps boost potential yields for investors.

List of main points to consider when investing in Nazaré:

• Greater affordability compared to Lisbon or Porto means lower entry costs.
• Good potential for both rental and long-term appreciation.
• Thriving local community—Nazaré isn’t just a tourist spot, it’s an easy place to feel at home (learn more about why people choose Portugal for relocation).

Nazaré isn’t as crowded as the Algarve or as expensive as Lisbon, but the area’s steady growth and unique charm make it a smart choice if you want a mix of investment and lifestyle.

If you’re interested in financing a property or want tailored investment advice, don’t hesitate to contact Portugal Mortgage and see how you can secure your place in Nazaré with the right support.

10. Viseu

Viseu is a smart choice for investors who want a mix of stable returns and a quiet lifestyle. This city in the center of Portugal is known for its peaceful atmosphere, accessible amenities, and growing business sector. It stands out because property prices are more affordable than in big urban hubs, yet rental demand is steady thanks to local jobs and schools.

Viseu offers strong value for money, especially for buyers using financing to get on the property ladder.

Here’s why Viseu ranks well for 2025 property investment:

• Lower average price per square meter compared to Lisbon or Porto, helping investors maximize loan-to-value.
• Consistent local demand from families and professionals who prefer quality schools, healthcare, and a relaxed lifestyle.
• Growth in tourism, with visitors drawn to cultural festivals, historic sites, and local wineries.

A closer look at Viseu’s market in 2025:

Ideal for early investors, Viseu combines steady rental returns with low entry costs—it’s rare to find this balance elsewhere in Portugal.

If you’re thinking of financing your investment in Viseu, now is a great time to act. Get in touch with Portugal Mortgage to discuss your options and receive tailored advice for buying in 2025.

Viseu is a beautiful city in Portugal full of charm, parks, and great places to visit. If you are dreaming about owning a home in Viseu, we can help make that happen. Visit our website to find out how easy it is to get started. Don’t wait to begin your journey—take your first step toward your new home today!

Conclusion

Portugal’s property market in 2025 is full of options for investors who want both strong returns and a good lifestyle. Whether you’re thinking about Lisbon’s busy city life, Porto’s history, or the sunny Algarve coast, there’s a spot that fits your plans and budget. The country is open to foreign buyers, and there are several financing options, even if you live abroad. Still, it’s smart to do your homework—look at local trends, check the rules, and talk to experts who know the market. If you’re ready to take the next step, Portugal Mortgage can help you sort out the details and find the right financing for your investment. With the right advice and a bit of patience, buying property in Portugal can be a smooth process. Your next investment could be just around the corner.

Frequently Asked Questions

Can foreigners get a mortgage to buy property in Portugal?

Yes, foreigners can apply for mortgages in Portugal. Many banks and lenders offer financing options to non-residents, but you may need to provide extra documents and meet certain requirements. Working with a specialized broker like Portugal Mortgage can help make the process easier.

What are the best places to invest in Portugal in 2025?

Some of the top places to invest in Portugal in 2025 include Lisbon, Porto, the Algarve, Cascais, Setúbal, Évora, Braga, Aveiro, Nazaré, and Viseu. Each area has its own unique benefits, such as growth potential, tourism, or affordability.

How much money do I need for a down payment in Portugal?

Usually, banks in Portugal ask for a down payment of 20% to 30% of the property’s price. This amount can change based on your profile and the lender’s rules. Foreign buyers may be asked for a larger down payment compared to local residents.

Are there any special taxes for foreign property buyers in Portugal?

There are no extra taxes just for foreigners, but all buyers must pay property taxes like IMT (property transfer tax), stamp duty, and annual municipal tax (IMI). The amount depends on the location and value of the property.

Is buying property in Portugal a good investment?

Yes, Portugal is seen as a strong choice for property investment. The market is stable, there is high demand from tourists and expats, and there are tax programs and residency options that make it attractive for international buyers.

How can Portugal Mortgage help with property financing?

Portugal Mortgage is an expert in helping international buyers and expats get mortgages in Portugal. They guide clients through the legal, banking, and paperwork steps, making it easier to secure the right loan for your needs.