idealista's latest analysis shows that the gross return on buying a house to rent out was 7.2% in the third quarter of 2024. And although the return on housing has fallen slightly compared to the same period last year (7.4%), it is actually higher than that observed three years ago, when it stood at 5.7%.

Analysing the 13 district capitals with representative samples, Santarém is where it is most profitable to buy a house for investment in the summer of 2024, with a gross return of around 8%. However, the risks of investment are also higher here. For example, it may be more difficult to rent the house or the property may increase in value over time.

The list of most profitable cities to invest in a house and then put it on the rental market continues with Coimbra (6.9%), Leiria (6.3%), Évora (6%), Setúbal (5.9%), Braga (5.8%), Porto (5.7%), Viseu (5.3%) and Aveiro (5.3%) and Faro (5.1%).

The lowest returns are obtained by owners of rented houses in Lisbon (4.7%), Funchal (4.9%) and Viana do Castelo (4.9%). The truth is that the investment risks are also lower in these cities, as there is a lower probability that the house will not be rented.

In addition to the gross profitability of the property, before entering into this type of real estate deal, it is also important to analyse other expenses, such as taxes on the purchase of the house (such as IMT and Stamp Duty) and taxes on property income, for example. Only by taking all expenses and income into account can owners calculate the net return on this type of investment.

This study also made it possible to analyse the profitability of other real estate products at a national level. Offices provide profitability of 9.3%, shops of 8.4% and garages of 5.3% in the third quarter of 2024.